The convictions of former contractor Michael Lomas and businessman Hudson Kgomoeswana over a R1.4 billion corruption scandal at Eskom’s Kusile Power Station have highlighted the financial and governance risks facing South Africa’s power utility.
The Gauteng High Court in Johannesburg convicted the pair on 6 August 2026 on multiple corruption, money laundering and tax charges. They pleaded guilty under plea agreements and agreed to testify as state witnesses against their remaining co-accused.
For Eskom, the convictions are significant beyond the criminal proceedings. The utility is seeking to strengthen procurement oversight, internal controls and governance as part of its broader turnaround and long-term sustainability strategy.
Eskom spokesperson Daphne Mokwena said the convictions demonstrated the value of cooperation between the utility and law enforcement agencies.
“Eskom acknowledges the extensive and collaborative work between Eskom, law enforcement agencies and other stakeholders whose efforts contributed to securing these convictions,” said Mokwena.
The case also puts the spotlight on Eskom’s efforts to protect public funds and recover losses arising from fraud and corruption.
The utility said it would continue participating in government-led initiatives targeting fraud, corruption, theft and related criminal activities, while strengthening information-sharing and investigative capabilities.
For legitimate contractors and suppliers, stronger procurement controls could help create a more transparent and competitive environment for doing business with Eskom.
The convictions could also bolster confidence in Eskom’s efforts to address historical procurement failures, although the utility still faces the challenge of demonstrating that stronger controls can prevent similar misconduct in future.
Eskom said the Kusile matter forms part of several historical procurement irregularities and corruption cases that have been investigated or are still subject to legal proceedings.
