Johannesburg – The Association of Private Security Owners of South Africa (TAPSOSA) has endorsed the Special Investigating Unit’s (SIU) findings that more than R1 billion was siphoned from Eskom through irregular emergency security contracts.
Reacting to the findings, TAPSOSA on Monday, (17 February 2025), said it welcomed the outcome of the SIU probe and called for “immediate action” against implicated officials and procurement reform.
Last week on Wednesday, the SUI told the Standing Committee on Public Accounts (SCOPA) that it had uncovered anomalies regarding Eskom’s emergency security contracts.
The SIU found that Eskom employees manipulated procurement processes to siphon off more than R1 billion, split into smaller contracts to avoid stricter oversight.
As an example of the wrongdoing, the SIU alleged that Eskom staffers “created emergencies” to justify awarding an R500-million security contract to Fidelity Security Services in 2022.
The contract was meant to protect power stations, but the SIU investigations found the rush to finalise it may have been contrived.
The investigation was considered a pivotal effort to battle the pervasive corruption that has plagued Eskom.
In a press statement released on Monday, the TAPSOSA said it feels vindicated, as its members have faced victimisation by Eskom for whistleblowing and calling for full disclosure and accountability.
“We demand the immediate dismissal of all individuals involved in fabricating fictitious emergencies to justify awarding these dubious contracts,” said TAPSOSA spokesperson Sindiswa Changuion.
“The SIU findings further reveal that the awarded companies subcontracted 90% of the work to third-party providers, raising serious concerns about procurement integrity.
“It is unacceptable that Eskom’s acting Head of Security, Ms. Karen Pillay, who was placed on precautionary suspension in 2023, continues to receive taxpayer-funded compensation despite clear evidence of corruption.
“Moreover, it is evident that Ms. Pillay, along with the former CEO and COO, were not the only ones implicated.
“Those still employed by Eskom and involved in these corrupt dealings must be held accountable”.
TAPSOSA has also called on the National Treasury, which oversees the Public Financial Management Act (PFMA), to intervene in cases where marginalised security companies are targeted by entrenched networks within state-owned enterprises.
“These entities have manipulated procurement processes, continue to block their vendor numbers and withholding payments amounting to over R1.3 billion, all in favour of monopolising companies,” said Changuion.
“It is especially disheartening that security companies recently awarded contracts by Eskom and other state entities are now being subjected to arbitrary, non-procedural barriers designed to nullify their appointments.
“This deliberate sabotage only serves to reinforce corruption and maintain monopolistic control over state entities.”
TAPSOSA said it remains steadfast in exposing corruption, victimisation, and procurement manipulation in state-owned enterprises.
“We will not relent in advocating for transparency, fairness, and accountability from those entrusted to serve the public,” said Changuion.