The Special Investigating Unit (SIU) has secured a significant preservation order from the Special Tribunal, freezing 17 properties and seven luxury vehicles connected to businessman Siyabonga Moses Goodwill Nkosi and several associated trusts. Judge Bernard Ngoepe granted the order, which effectively prevents the sale, transfer, or concealment of these assets while the extensive SIU investigation progresses. The frozen properties alone are valued at approximately R76.5 million, forming a crucial part of efforts to recover public funds allegedly lost through irregular procurement practices at Eskom.

The investigation, authorized under Proclamation R.80 of 2022, uncovered a sophisticated scheme of procurement abuse by Eskom officials at the Kusile and Matla power stations between 2021 and 2023. These officials manipulated procurement systems by approving inflated and irregular purchase orders for electrical relays, essential equipment for power station operations. Instead of adhering to proper procedures, they authorized prices of around R50,000 per unit, despite the actual market price for these relays ranging between R180 and R450. This illicit scheme led to Eskom incurring losses exceeding R73.6 million.

Investigators discovered that the scheme was meticulously designed to bypass stringent procurement controls. Eskom officials deliberately split purchase orders, ensuring each transaction remained below the R1 million threshold. This tactic allowed them to utilize informal tender processes, circumventing the stricter oversight associated with larger contracts. Furthermore, false part numbers were uploaded onto Eskom’s systems, a move that guaranteed only pre-selected, colluding suppliers could successfully bid. The SIU confirmed that the equipment purchased through these irregular processes was not needed by Eskom and remains unused in storage years later, highlighting the purely fraudulent nature of the transactions.

Siyabonga Moses Goodwill Nkosi has been linked to this scheme both in his personal capacity and as a trustee of three key entities: the Nkosi Royal Trust, Sibongukukhanya Trust, and Siyabonga Kankosi Trust. The SIU alleges that these trusts were instrumental in channeling funds derived from the irregular Eskom contracts into the acquisition of high-value assets across multiple provinces. Nkosi is also known to be married to Instagram influencer Leleti Nkosi, who is noted for her luxurious lifestyle.

The preservation order encompasses a wide array of assets. In Gauteng, the frozen properties include a penthouse at The Capital on the Park, valued at approximately R13.5 million, alongside properties in Carlswald Lofts, Serengeti Estate, Helderwyk Estate, and Parkhurst. In KwaZulu-Natal, assets covered by the order include properties in Molokai Estate, Grand View Private Estate in Zimbali, and Zimbali South, where one property alone is valued at about R12.7 million. Mpumalanga also saw the freezing of seven farm portions, with individual values ranging from R320,000 to R4.6 million. The order further extends to seven high-end vehicles, including multiple Porsche models and two Lamborghini Urus vehicles, underscoring the extravagant nature of the alleged ill-gotten gains.

The SIU emphasized that this preservation order is a crucial step in securing the assets while it moves to have the tainted contracts reviewed and set aside by the Special Tribunal. In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the Unit is authorized to refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action. The SIU is also empowered to initiate civil proceedings in the High Court or a Special Tribunal to correct any wrongdoing and recover financial losses suffered by the State, including funds paid for services not rendered.