South Africa Probes 2 Billion-Rand Eskom Fraud, Press Says

(Bloomberg) --

South African authorities are investigating fraudulent transactions that cost state power utility Eskom Holdings SOC Ltd. 2 billion rand ($132 million), City Press reported, citing the Special Investigating Unit.

The transactions involved several companies billing Eskom over the past three years for work that was never done, the Johannesburg-based newspaper said. The probe began after a whistle-blower alleged that at least three unidentified Eskom officials were colluding with various service providers to generate fraudulent invoices, it said.

Eskom spokesman Sikonathi Mantshantsha confirmed the investigation and said it’s at an advance stage.

“Eskom will take the appropriate measures once we have received the final report, which will be in a few weeks time,” he said by phone on Sunday.

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