Eskom Fraud Scandal: Four Arrested in Multimillion-Rand Tender Scheme

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The Gauteng Directorate for Priority Crime Investigation's Serious Commercial Crime Investigation (SCCI) team has taken decisive action in a high-profile fraud case involving Eskom, arresting four individuals linked to the mismanagement of a multimillion-rand tender.

The arrests, carried out on Monday, December 2, 2024, culminated from years of investigative work following allegations of corruption in a contract awarded in 2015. Those apprehended include Lunga Msengana (49), Jacobus Ronald Buitenbach (52), Gabriel Brian Peters (56), and Calvin Rayan Peters (33).

The case, initially reported to the Sandton police in February 2020, centers on the V-SAT Network Project, a satellite services tender awarded to Touch Africa Telekoms (Pty) Ltd. The contract involved supplying, delivering, installing, and commissioning satellite equipment on an "as and when required" basis over five years. However, the project, while billed to Eskom, allegedly failed to deliver the promised equipment, sparking suspicions of fraud.

Allegations Uncovered

Investigators allege that Lunga Msengana, Eskom's project manager for the V-SAT Network project, collaborated with Touch Africa directors Jacobus Buitenbach and Gabriel Peters to falsify delivery records. Despite documentation showing the equipment had been delivered, it reportedly never reached Eskom's facilities.

Funds tied to the tender also raised red flags. Jacobus Buitenbach is accused of receiving R912,000 from Eskom under the pretense of fulfilling contract obligations, while Gabriel Peters is alleged to have pocketed R2.2 million, which he later transferred to his son, Calvin Peters. Investigators believe these funds were used for personal gain rather than project implementation.

Court Appearance and Bail

The four accused appeared in the Palm Ridge Specialised Commercial Crimes Court on the same day of their arrest. Each was granted bail of R10,000, and the case has been postponed to February 25, 2025, for further investigation and proceedings.

More Arrests Possible

Law enforcement authorities have indicated that further arrests cannot be ruled out as the investigation continues. Speaking on the matter, Major General Ebrahim Kadwa emphasized the importance of addressing corruption in state institutions.

“This operation demonstrates our commitment to safeguarding public resources and ensuring that those who betray public trust are held accountable,” said Kadwa.

As the case unfolds, questions linger about the broader impact of this alleged corruption on Eskom and the taxpayers who rely on the utility to deliver critical services.


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