An internal investigation into alleged irregularities in Eskom’s diesel and storage contracts is now in its final stages, according to Electricity and Energy Deputy Minister Samantha Graham-Maré, who acknowledged that syndicates and hidden procurement networks have made the probe exceptionally complex.
The investigation, which has drawn months of scrutiny from civil society groups, comes amid unresolved governance questions and recent salary hikes at the struggling power utility. Speaking in a recent interview, Graham-Maré explained that Eskom’s sheer size—42,000 employees, larger than the entire country of San Marino—has allowed corruption to become deeply embedded in everyday bureaucracy.
“It is very, very difficult to start getting into the nuts and bolts of what happened,” Graham-Maré said. “People have been very clever, and so much has been hidden in the everyday bureaucracy that exists in a company of this size.”
She noted that the Special Investigating Unit (SIU) remains severely underresourced, with thousands of documents to examine for each complaint. “For every single complaint they’re looking at, there are thousands of pieces of paper that have to be gone through,” she said, adding that arrests have already been made.
Examples of irregular spending uncovered so far include paying 50,000 rand for a breaker that costs 200 rand, as well as a previously reported case of a 230,000 rand mop. “It cuts very, very deep,” Graham-Maré said. “It goes right up to the top and right down to the bottom.”
While no firm timeline has been set, she indicated that outcomes could be expected within the next month or two. “We’re definitely at a point where we’re starting to see the benefits of the work that’s been done,” she said.
Salary Hikes and Labour Pressure
The Deputy Minister also addressed recent salary increases, noting that Eskom’s bargaining unit workers will earn a minimum of 19,768 rand per month from July, with salaries rising 75% since 2017—well above inflation.
Graham-Maré described the situation as “very difficult to understand,” particularly when households face record electricity tariffs and must choose between buying food or power. She attributed much of the pressure to organised labour.
“Unfortunately, Eskom, like many large state-owned entities, is often held to ransom by labour,” she said. “Organised labour has really forced Eskom’s hand to a large extent to above-inflation, double-inflationary increases.”
While acknowledging that bonuses paid out—amounting to billions of rand—are contentious, she noted that Eskom has not experienced load shedding for over 300 days and has made a “wonderful profit,” which may have justified the payouts in the utility’s view. However, she clarified that operational decisions on salaries are not within the ministry’s purview. “Our job is policy and oversight,” she said.
Unbundling Challenges and Municipal Debt
Graham-Maré identified municipal debt as the single biggest obstacle to Eskom’s unbundling, noting that municipalities owe the utility 111 billion rand. “We keep looking at Eskom debt in municipalities as an Eskom issue, and it’s not,” she said, calling for a focus on systemic problems within municipalities themselves.
She defended Eskom as “an unbelievably good employer” with phenomenal staff retention and skills training, but warned that the utility is losing market share and must retain talent as the electricity sector becomes more competitive.
Regarding the collapsed sale of a business unit to African Bank, Graham-Maré said the unbundling process—Eskom turns 104 this year—is “unbelievably complex.” She predicted false starts and both wins and losses ahead, but stressed that energy security remains the department’s top priority. “We are not going to do anything that threatens the energy security of this country,” she said.
