Business Leadership South Africa (BLSA) recently defended its decision to provide funding for an R50 million risk assessment probe into Eskom, South Africa’s state-owned power utility. After former Eskom CEO André de Ruyter approached the organisation in 2021 to assist with the investigation of corruption at Eskom, BLSA contributed R18 million to the probe. The investigation was conducted by George Fivaz Forensic & Risk, and the findings were intended to be turned over to law enforcement authorities for further investigation or prosecution.
On Thursday, BLSA CEO Busi Mavuso and Business Unity South Africa (Busa) CEO Cas Coovadia held a joint media briefing to defend the decision, stating that the work falls squarely within BLSA’s responsibilities. “Enabling a capable state to provide support to state-owned institutions and other public sector initiatives is in the ordinary course of business for BLSA,” according to Mavuso. Mavuso went on to say that Eskom has been “ground zero for syphoning funds out of the state,” and that the investigation is necessary to assist law enforcement authorities in combating systemic corruption.
De Ruyter has repeatedly expressed his concern about Eskom’s high levels of crime and corruption. He recently implicated a senior politician, claiming the politician said people should be “allowed to eat” in relation to the alleged misuse of an $8.5 billion climate change fund. He claimed that the power utility loses R1 billion per month to corruption.
Coovadia explained that BLSA was aware that De Ruyter had gone through internal processes in an attempt to address the allegedly illegal acts at Eskom, and that intervention was deemed necessary. He went on to say that the work that the BLSA was asked to fund would allow law enforcement to act. While the source of the remaining R50 million is unknown, Mavuso stated that the BLSA’s contribution of R18 million received full board approval. She also stated that the funds came from an existing budget allocation within BLSA, which was set aside for spending on similar initiatives.
The investigation has drawn criticism from organisations such as the Black Business Council, which claimed in a recent press release that the BLSA was meddling in Eskom’s affairs. Both BLSA and Busa, however, have defended the decision and dismissed the criticism. “We don’t consider that interference,” Coovadia says, “and it is certainly our view that the work we are being asked to fund will be used by Eskom to actually inform law enforcement.” Mavuso confirmed that the BLSA received the Fivaz report and that the contents indicate that it was turned over to law enforcement agencies.
The investigation into corruption at Eskom is a critical step in addressing South Africa’s ongoing corruption problem. Corruption not only undermines public trust in government institutions and harms the economy, but it also perpetuates inequality and poverty. The funds lost due to corruption could have been used to provide much-needed public services and assistance to society’s most vulnerable members.
It is critical for organisations like the BLSA to take an active role in combating corruption and assisting law enforcement authorities. They are thus contributing to the creation of a more transparent and accountable society, which benefits everyone. The decision to fund the Eskom investigation was an important step forward in the fight against corruption, and BLSA should be commended for their efforts.
Main Image: The Citizen
