Eskom’s New Acting CEO Faces Scrutiny Amidst Controversial Contract
Eskom’s New Acting CEO Faces Scrutiny Amidst Controversial
Eskom’s newly appointed acting CEO, Calib Cassim, finds himself under the spotlight as allegations of his involvement in a controversial security contract with Fidelity Services Group surface.
The Fidelity Security Contract Saga
The controversy began when Fidelity was granted a three-month contract, reportedly at the request of Eskom’s former head of security, Karen Pillay, who has since been suspended. It was revealed that Cassim, in his previous role as Eskom’s CFO, approved a deviation from the utility’s payment policy to fast-track invoice payments to Fidelity, totaling over R250 million.
Eskom’s payment policy dictates that contracts valued at R100 million or more should be paid within 60 days. However, Pillay sought payments to be expedited within 7 to 14 days. Former Eskom CEO Andre de Ruyter and former COO Jan Oberholzer allegedly supported this deviation request.
Additionally, De Ruyter supported the initiation of the three-month emergency contract with Fidelity without inviting other companies to bid for the work, raising concerns among Eskom insiders.
Criminal Investigation and Accountability
City Press has reported that Eskom’s board is now focusing on Cassim’s role in awarding the emergency security contract to Fidelity Services Group. A criminal investigation into Karen Pillay is also underway for her involvement in the contract.
The Special Investigating Unit (SIU) confirmed that the contract was awarded without the approval of the Eskom board, and SIU head Andy Mothibi expressed that such mismanagement and fraud couldn’t have been executed by a single person alone.
Mothibi emphasized that Cassim should be held responsible for the financial damage incurred due to the mismanagement of public funds, stating, “That’s tantamount to fraud and racketeering.”
Eskom’s spokesperson, Daphne Mokwena, mentioned that the matter is still under investigation, and Eskom is cooperating with relevant authorities.
Fidelity Services Group’s Response
Fidelity Services Group CEO Wahl Bartmann confirmed that the group was awarded a three-month emergency contract with Eskom, emphasizing that the total contract value was approximately R250 million, not the R500 million figure circulating in media reports.
The contract aimed to provide a comprehensive security solution, including land and air support, specialized armoured personnel carriers, tactical intervention units, and more. However, Bartmann clarified that Fidelity did not provide intelligence services to Eskom, contrary to some media statements.
As the investigations continue, Eskom faces a challenging period of accountability and transparency in its operations. Stay tuned for further developments in this unfolding saga.
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