The former managing director of Eskom Mr Dawid Johannes Malherbe, 56, was found guilty of fraud and money laundering by the Bellville Specialised Commercial Court on Friday, June 17, 2016.
Malherbe and another person were arrested in 2013 after a whistle-blower alerted the Hawks of the irregularities at the power utility’s tender awarding process. The Financial and Asset Forfeiture Investigations (FAFI) and Anti-Corruption Task Team investigated the allegations and found that Malherbe, during his tenure as the Eskom’s managing director between 2007 and 2009, unduly awarded tenders to Energy Utility Services (PTY) 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.
The loss which Eskom endured was quantified to be in the region of R65 million and Asset Forfeiture Unit has thus far managed to recoup approximately R10 million through the attachment of the accused’s assets.
The second accused in the matter was granted immunity from prosecution as he opted to testify against Malherbe in the matter.
Sentencing proceedings are scheduled for 11 August 2016 at the same court.
The National Head of the Hawks Lieutenant General Mthandzo Ntlemeza has welcomed the guilty verdict and applauded the investigating team for securing a conviction. He said members get to be motivated when their efforts of bringing criminals behind bars bring forth desired results. “Whenever a case is presented before us we go out of our way to investigate thoroughly with the sole aim of securing a conviction. We are the hope of all law-abiding citizens and we have every reason to be proud of all our members who followed-up on every lead to secure a conviction”, said Lieutenant General Ntlemeza.