Limpopo businessman accused of defrauding Eskom wants plea deal

A Limpopo businessman accused of defrauding Eskom out of millions of rands is seeking a plea deal instead of going to trial.

Maphoko Hudson Kgomoeswana appeared in the Pretoria Specialised Commercial Crimes Court on Monday, where discussions surrounding a possible plea agreement took center stage.

Plea Proposal Rejected

The Investigating Directorate Against Corruption (IDAC), which is handling the case, has not accepted Kgomoeswana’s plea proposal.

IDAC spokesperson Henry Mamothame confirmed that the fraud and tax case was postponed to 5 May 2025 to allow for further plea negotiations.

“The Investigating Directorate Against Corruption (IDAC) did not accept the plea proposal put forward by the accused on Friday, 21 February 2025. The IDAC was ready to proceed with trial. However, the court held it to be in the interest of justice to afford the accused a further opportunity to deliberate with the IDAC on a possible plea,” Mamothame stated.

This means that while IDAC was prepared to take the case to trial, the court granted Kgomoeswana additional time to negotiate a plea deal.

The Charges Against Kgomoeswana

Kgomoeswana is facing multiple charges of fraud and tax evasion, with the case involving approximately R18 million.

The allegations stem from his personal and business tax records linked to his company, Babinatlou Business Services CC, between 2016 and 2018.

These offences came to light during ongoing investigations into the alleged corruption surrounding Eskom’s Kusile Power Station project.

Currently, Kgomoeswana remains out on a warning. However, the court has instructed him to be present when the case resumes in May 2025.

Involvement in R745 Million Money Laundering Case

Beyond the current fraud and tax evasion charges, Kgomoeswana is also implicated in a massive R745 million fraud, corruption, and money laundering case.

This separate case includes two former Eskom executives, France Hlakudi and Abram Masango, as well as two businessmen, Antonio Jose da Costa Trindade and Michael Lomas.

Kgomoeswana’s company, Babinatlou Business Services, is believed to have facilitated kickback payments to Masango and Hlakudi on behalf of Tubular Construction Projects, a firm that secured lucrative contracts from Eskom.

Investigators allege that Eskom executives manipulated the procurement process to ensure Tubular Construction Projects received contracts worth hundreds of millions of rands.

International Extradition and Money Trail

A key figure in this case, Michael Lomas, was extradited to South Africa from the United Kingdom (UK) in September 2023.

Lomas was initially arrested by British authorities in April 2021 following a request from the South African government. At the time, he was granted bail of £100,000 (equivalent to R1.7 million at the time).

The state alleges that Eskom paid R745 million to Tubular Construction Projects based on fraudulent contracts. The contract in question was for the construction of air-cooled condensers at Kusile Power Station.

Due to fraudulent activities and escalated costs, the total contract amount ballooned to R1.4 billion, significantly increasing the financial burden on Eskom.

What Happens Next?

• Kgomoeswana’s plea negotiations will continue over the next few months, with a final decision expected by May 2025.
• The state will decide whether to accept a plea bargain or proceed to trial.
• Further investigations into the Kusile corruption scandal could lead to more arrests.

The Bigger Picture: Eskom Corruption and Economic Impact

The Kusile Power Station corruption scandal is one of the biggest financial crimes to hit South Africa’s energy sector.

The fraudulent contracts and mismanagement have contributed to Eskom’s financial crisis, exacerbating load shedding and power supply challenges across the country.

Many South Africans are demanding stronger action against corrupt individuals, arguing that those responsible for crippling the country’s energy provider must face the full force of the law.

As the case unfolds, it remains to be seen whether Kgomoeswana’s plea deal will be accepted, or if he will be forced to stand trial alongside his co-accused.