26 security firms face Treasury blacklisting over Eskom dispute

Eskom has referred 26 black-owned security companies to National Treasury for blacklisting, but industry body TAPSOSA says the utility skipped due process and denied the firms a right of reply. TAPSOSA alleges the referrals selectively target companies linked to whistleblowing rather than proven fraud, with some flagged over operational issues unrelated to corruption. The dispute traces back to Eskom's 2023 suspension of security manager Karen Pillay, still unresolved more than three years later, following a contested R250 million emergency contract awarded to Fidelity Services. TAPSOSA says companies implicated in wrongdoing have faced no consequences, while whistleblowers are being pushed out through blacklisting..By Myles Illidge.The Association of Private Security Owners of South Africa (TAPSOSA) has raised concerns over Eskom’s referral of 26 black-owned security companies to the National Treasury for blacklisting.Speaking to SABC News, TAPSOSA spokesperson Sindiswa Changuion alleged Eskom and National Treasury did not follow due process.“Within that particular process, they need to make sure that they’ve exhausted all internal measures to make sure that those companies are able to defend themselves accordingly,” she said.“The National Treasury did not even afford these companies a right of reply in terms of being able to be blacklisted. You nearly blacklisted these companies without even affording them an opportunity.”TAPSOSA alleged the blacklisting referrals were selectively targeting whistleblowers, which Changuion said started a long time ago.“We are saying that, within that particular process, there’s a selective process that has happened within Eskom in terms of being able to target certain companies,” she said.“Not all 26 companies that have been referred to the National Treasury are the ones that have been labelled as being fraudulent and have done corrupt activities.”Changuion said some of the referrals had nothing to do with companies found to be fraudulent or corrupt.“That is the issue that we’re raising, because some of that has got to do with operational issues that have nothing to do with them being involved in corruption,” she said.She said the issues surrounding the 26 companies began some time ago, around the time when Eskom suspended security manager Karen Pillay in June 2023.“From there, there was selective targeting of companies that were actually whistleblowers in terms of those particular issues,” she said.TAPSOSA further alleged that these companies were being targeted while implicated companies were being let off the hook.“Those companies that have been implicated in wrongdoing in terms of that particular case, there’s nothing that has happened to those companies,” Changuion said.Eskom security head suspension drags on for 3 years.Eskom placed acting head of security, Karen Pillay, on precautionary suspension in June 2023 to allow for an investigation into a security contract awarded to Fidelity Services to proceed without hindrance.There were also several allegations levelled against Pillay that required investigation. Her suspension came shortly after reports surfaced that Eskom had awarded the contract to Fidelity Services.Reports initially said that Eskom had paid Fidelity R500 million for the three-month emergency security contract. However, Eskom later clarified that it had paid R250 million.The utility also confirmed to MyBroadband that it had placed Pillay on precautionary suspension to allow for the investigation to proceed. It did not specify which allegations against her would be probed.It appears that Pillay remains on precautionary suspension over three years later. The power utility has not published the outcomes of the investigations into Pillay.Eskom has refused to clarify whether Pillay remained suspended with full pay or otherwise, stating that it could not disclose internal matters between Eskom and its employees.At the time, the utility said its internal investigation into the matter was at “a very advanced stage” and nearing its conclusion..Read more:.Eskom turns profit after eight years, eyes bond market by 2028.The Organisation Undoing Tax Abuse (OUTA) welcomed the news following the reports that Pillay had been suspended.“Hopefully, this leads to a full investigation that exposes the extent of the sabotage and rot in Eskom. And criminal charges against whoever is implicated,” OUTA said.Former Eskom CEO Matšhela Koko also chimed in. “What goes around comes around. Hunters are being hunted. André de Ruyter’s forces are on the receiving end. It’s nothing new,” Koko said..This article was first published by MyBroadband and is republished with permission..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

26 security firms face Treasury blacklisting over Eskom dispute

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