David Malherbe, the former managing director of Eskom, was found guilty of fraud and money laundering last week. Malherbe was arrested with another suspect in 2013 after a whistle blower alerted the Hawks to irregularities in the power utility’s tender awarding process, police said.
“The Financial and Asset Forfeiture Investigations and Anti-Corruption Task Team investigated the allegations and found that Malherbe, during his tenure as Eskimo’s managing director between 2007 and 2009, unduly awarded tenders to Energy Utility Services LTD, the company which he owned.”
The results of the internal investigations as well as the reports from the external auditors found that Malherbe’s actions of awarding tenders to his company amounted to irregular, wasteful and fruitless, expenditure.
At the knowledge of the results, Malherbe immediately resigned,” police spokesperson Lieutenant Colonel Robert Netshiunda said.
Eskom suffered losses of around R65 million as a result and so far about R10million has been recouped through the attachment of the accused’s assets.