Johannesburg – Eskom has restricted 101 suppliers, including implicated directors and owners, from doing business with the power utility for periods of up to 10 years following disciplinary processes linked to fraud, corruption and other procurement-related misconduct.
The restrictions were imposed between February 2023 and 31 March 2026 and relate to cases dating back to 2015, with most originating between 2016 and 2022, Eskom said in a statement on Thursday.
The utility said the restrictions followed consideration by its Supplier Review Committee, which assesses allegations of supplier misconduct and determines appropriate sanctions based on available evidence and applicable governance requirements.
“Fraud, corruption, procurement irregularities and supplier misconduct have affected public confidence and highlighted the need for decisive, transparent and sustainable consequence management across Eskom’s supply chain,” Eskom Group Chief Executive Dan Marokane said.
Marokane said Eskom now aimed to process and resolve newly referred supplier disciplinary cases within 90 days.
Clear message that unethical conduct
“The progress achieved to date demonstrates Eskom’s determination to confront fraud and corruption in a practical and measurable way,” he said.
He added that reducing backlogs and speeding up the resolution of new cases would reinforce accountability within Eskom’s supply chain.
“Eskom is reinforcing a clear message that unethical conduct has no place in its supply chain, and accountability is central to restoring trust, integrity and good governance,” Marokane said.
The announcement follows allegations by the Association of Private Security Owners (TAPSOSA) that 26 black-owned companies among the restricted suppliers had been referred to National Treasury without due process.
Eskom rejected the allegations, saying the referrals followed its internal governance and supplier disciplinary processes and were based on assessed misconduct and available evidence.
The utility said all affected suppliers were given an opportunity to respond to allegations before decisions were taken.
According to Eskom, the misconduct cases included allegations of fraud, corruption, misrepresentation, collusion and other integrity-related breaches.
Eskom also denied claims that suppliers were referred to National Treasury over ordinary contractual or operational issues, such as isolated service-level agreement failures.
Procurement integrity measures
The utility further rejected allegations that the companies were targeted because they had acted as whistleblowers.
Eskom said TAPSOSA was not a party to the disciplinary matters involving the 26 suppliers and questioned the basis on which the association claimed to act on their behalf.
Of the 53 referrals for restriction made to National Treasury, Eskom said only one supplier provided security-related services.
The utility said its supplier review process is aligned with National Treasury’s PFMA Supply Chain Management Instruction No. 3 of 2021/22, which provides a framework for dealing with supplier misconduct.
Eskom said its procurement integrity measures also include a Supplier Integrity Pact requiring suppliers to comply with ethical standards and avoid dishonest, fraudulent, corrupt or anti-competitive conduct.
The consequences of the disciplinary process have extended beyond Eskom’s own supplier database.
As of 20 August 2026, National Treasury had recorded 35 companies and 45 directors or owners linked to the restricted suppliers on its database of restricted suppliers, following referrals from Eskom.
The listings mean the affected suppliers are restricted from doing business with the state for the applicable restriction period.
Eskom said the process was intended to strengthen accountability across the public sector and ensure that findings of supplier misconduct result in meaningful consequences.
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Compiled by Betha Madhomu
