Eskom bans 101 suppliers for up to 10 years in corruption crackdown

Eskom, the South African power utility, has officially barred 101 suppliers from engaging in business with the company for up to a decade. This decision followed the utility's supplier disciplinary process, which took place between February 2023 and March 2026, with cases dating back to 2015. Most of these cases emerged from the period between 2016 and 2022.

The restrictions were implemented after the Supplier Review Committee reviewed the allegations, and all affected suppliers were given a chance to respond before the final decisions were made.

Dan Marokane, Eskom's Group Chief Executive, emphasized that fraud, corruption, procurement irregularities, and supplier misconduct have damaged public confidence and underscored the need for decisive, transparent, and sustainable consequences. Marokane also mentioned that Eskom intends to process and resolve newly referred supplier discipline cases within 90 days to address the backlog and handle new cases more swiftly.

The utility rejected allegations made by the Association of Private Security Owners of South Africa (TAPSOSA) that 26 black-owned companies were referred to the National Treasury without due process. Eskom clarified that the referrals were based on its internal supplier disciplinary processes, and the affected suppliers were granted the opportunity to present their side before any decisions were made. Eskom noted that TAPSOSA is not part of the supplier discipline matters involving the 26 restricted suppliers.

Out of the 53 referrals made to the National Treasury for restriction, only one supplier provides security-related services. Eskom is unable to confirm the basis on which TAPSOSA claims to represent these 26 restricted suppliers, particularly regarding the involvement of the affected suppliers and/or their legal representatives during the supplier disciplinary process.

The cases involved serious misconduct, such as fraud, corruption, misrepresentation, and collusion. Of the 53 suppliers referred to the National Treasury, as of 20 August 2026, Treasury has listed 35 companies and 45 directors or owners associated with the restricted suppliers.