Presentation to the Standing Committee on Public Accounts on Eskom Investigation Status

1. Seek, Seek, Find, Find, Strike Strike PRESENTATION TO THE STANDING COMMITTEE ON PUBLIC ACCOUNTS ON THE STATUS OF INVESTIGATIONS RELATING TO ESKOM (INTELLIGENCE REPORT) Presented by the National Head of the Directorate for Priority Crime Investigation Lieutenant General (Dr/Adv) SG Lebeya (SOEG) 12 SEPTEMBER 2023 1

2. 2 TABLE OF CONTENTS • Introduction • Background Structure of Intelligence Reports “Fivaz Report” • Criminal Allegations • Assessment/ Documentation • Multi- Disciplinary Approach • Way Forward •

3. 3 INTRODUCTION The purpose of this presentation is appraise the Standing Committee on Public Accounts on the intelligence report commissioned by the former Chief Executive Officer (CEO) on Eskom alleged sabotage.

4. 4 BACKGROUND • The Intelligence reports obtained from the George Fivaz Forensic and Risk Investigations were obtained and handed over to the Provincial Head of the Directorate for Priority Crime Investigation (DPCI), Mpumalanga. • The Intelligence reports were received on the 22ndof June 2023. • A follow up-meeting was convened between the Fivaz group and the Provincial Head of the DPCI from Mpumalanga, including an analyst from the Priority Crime Management Centre (PCMC) within the DPCI on the 28thof June 2023. • The aim of the engagement between the DPCI Mpumalanga and General Fivaz was to clarify certain issues raised in these reports.

5. 5 STRUCTURE OF INTELLIGENCE REPORTS • 348 individual intelligence reports were received and all these reports were structured in a similar format (“FIVAZ” report). • From these individual intelligence reports, 23 liaison reports were received, where all the individual intelligence reports were grouped or clustered together (Includes 1 150 pages). • These liaison reports (23) were clustered together as a result of alleged criminal association and criminal activities. • It was further observed that certain role players in the liaison reports (23) were implicated in multiple individual intelligence reports which are indicative of interconnectivity and networking between alleged syndicates. • It appears that the intelligence was gathered during the 2022 and 2023 period, though the criminal activities might have commenced prior to the reporting period.

6. 6 OVERALL CRIMINAL ALLEGATIONS (1) The reports include the following crime dimensions which affect the state owned entity, Eskom: Sabotage of Eskom infrastructure • Sabotage by utilizing unemployed foreigners and or co-workers to sabotage or damage infrastructure, putting pressure on Eskom to utilize the emergency to fix the problem at a significant cost. The emergency procurement processes will be utilised to obtain contracts. • Eskom, facing a national emergency, may have no choice but to pay the excessive fees charged to address the emergencies. • Sabotage by contractors in charge of maintenance who deliberately omitted basic maintenance with the aim to cause damage to the infrastructure so that their services for providing additional maintenance can be required, as a result benefiting the contractors in charge of maintenance. Procurement fraud and corruption • Intelligence reports indicated that most companies that were identified belong to subjects of the identified groupings which were awarded contracts without following the correct procurement procedures. • Manipulation of Eskom stock/product/fraudulent invoicing was detected from the intelligence reports. • Syndicates utilize fraudulent invoice and documentation. • Corrupted security officers sign-off on non-existent product delivery: Some Eskom security personnel are allegedly involved in these activities.

7. 7 OVERALL CRIMINAL ALLEGATIONS (2) Coal Mafia • Activities of the “Coal Mafia” including coal theft and associated criminal practices. • Multiple groups involved in illegal coal yards were identified in the intelligence reports. • Specific groups operating in and around power stations in Mpumalanga were identified. Prominent and Influential (Persons and Entities) • Several high ranking prominent influential officials, involvement in alleged criminal activities, Eskom employees, corrupt SAPS members and security personnel. Intimidation and the threat of violence towards Eskom members. • Extensive and life threatening intimidation has been raised towards Eskom employees and any other person who becomes an existential threat to individuals. • PREVENTION OF ORGANISED CRIME ACT (POCA) 121 OF 1998 • Crime relating to the Prevention of Organised Crime Act 121 of 1998 (POCA).

8. 8 INTELLIGENCE REPORTS/ DOCUMENTATION These allegations taking place at different Eskom power stations. intelligence reports are of similar structure which differ in length and provide information on • Diagrams with key role players within specific groupings were supplied (Basic summary of the activities within syndicates or groupings were depicted within the diagrams). • Assessment of the FIVAZ report: Although the allegations towards entities, groupings or individuals are not proved yet, the gathered intelligence needs to be corroborated, as the potential exists to investigate the matter further. Reliability and accuracy of information needs to be verified in the form of a deposed affidavit from Eskom. • From the intelligence reports 10 groupings were identified by DPCI Mpumalanga. From the identified groupings several subjects of interest associated to entities were identified and linked to moveable and immovable properties. No illicit activity has been confirmed as yet. • The magnitude of allegations within the intelligence reports necessitate the DPCI to further analyse, collect, collate and assess in order to make an informed decision on the correct investigation methodology which might need to be initiated. •

9. 9 MULTI-DISCIPLINARY APPROACH • Notwithstanding, the Fivaz intelligence reports, the DPCI acknowledges the alleged widespread criminality within the entire value chain of the business activities of Eskom. • The crime threat posed to Eskom and the interruption of electricity supply negatively affect the entire South Africa. • On the 27thof June 2023 the Special Investigation Unit (SIU) was consulted by the Provincial Head of the DPCI in Mpumalanga and was clear through the engagements that certain investigations are similar. The SIU and DPCI expressed mutual willingness to co-operate in the investigation to ensure a focused criminal investigation, with impact. •

10. 10 WAY FORWARD The DPCI is formalising a multi-disciplinary task team in accordance with Section 17F of the SAPS Act 68 of 1995. • The team should comprise of investigators from DPCI Gauteng (National), Limpopo and Mpumalanga provinces. The integrity and seriousness of the allegations necessitate a dedicated specialised team to investigate the allegations through evidence collection and corroboration between law enforcement agencies and other stake holders with specialised skills. • Further engagements will take place between the SIU and DPCI relating to the FIVAZ reports. • The collaboration shall be expanded to: • Crime Intelligence, South African Revenue Service (SARS) Financial Intelligence Centre (FIC) Eskom National Prosecuting Authority (NPA) • • • • •

11. The DPCI shall at all times enforce the Law of the Republic without fear, favour or prejudice and, as the circumstances of any particular case may require, in accordance with the Constitution and the Law [ Thank you Thank you 11