A BRITISH businessman, Michael Lomas, has been extradited from the UK to South Africa to face charges of fraud and corruption related to his work as a contractor for Eskom, the country’s troubled power utility. Lomas is accused of receiving kickbacks on contracts worth over 1.5 billion rand ($85 million) for the construction of the Kusile power station, one of South Africa’s largest energy projects.
Lomas, a former head of Tubular Construction, landed in Johannesburg’s OR Tambo Airport on Friday under heavy police escort. He had fled to the UK after initially being arrested and granted bail, but the National Prosecuting Authority (NPA) requested his extradition in 2022. His appeal to remain in the UK was rejected, leading to his return to South Africa to face justice.
Eskom contract manipulation allegations
The charges against Lomas centre on claims that he manipulated contracts related to Kusile power station, a major infrastructure project intended to alleviate South Africa’s chronic electricity shortages. The project, however, has been plagued by delays and faults, exacerbating the country’s power crisis.
Brigadier Athlenda Mathe, spokesperson for South Africa’s national police, said, ‘He allegedly manipulated contracts. He was previously arrested, got bail, and fled to the UK.’ The businessman has not yet commented on the accusations against him.
Lomas is expected to be formally charged at Kempton Park Magistrate’s Court. Due to his poor health, he arrived in a wheelchair and a doctor accompanied him on the flight, as part of the conditions set for his extradition.
Broader Eskom corruption scandal
Lomas was arrested alongside four other co-conspirators in 2019, including two senior Eskom executives and two other businessmen. All five face charges of fraud, corruption, and money laundering related to the Kusile project, which was meant to ease the country’s ongoing electricity issues.
The group allegedly inflated project costs and took kickbacks, contributing to Eskom’s worsening financial and operational situation. Years of corruption and mismanagement have left Eskom struggling to provide reliable power to South Africa, resulting in regular load-shedding and blackouts.
Hawks, South Africa’s specialist police unit tasked with investigating organised crime and corruption, has been working on the case since 2017, after receiving a tip-off about irregularities in one of the tenders related to Kusile.
Eskom’s struggles with corruption and power cuts
Eskom, the state-owned power utility, has been at the centre of South Africa’s ongoing energy crisis. Persistent allegations of corruption, poor management, and inefficiencies have led to severe operational failures and rolling blackouts across the country. Kusile power station, once hailed as part of the solution to South Africa’s energy problems, has instead become a symbol of these broader issues.
The NPA’s success in extraditing Lomas from the UK is seen as a significant step forward in tackling the corruption that has long plagued the utility. Authorities are hopeful that Lomas’s prosecution will shed further light on the extent of the graft and offer some justice for the financial and operational damage inflicted on Eskom.
The case is expected to draw widespread attention as it unfolds, with many looking for answers as to how such large-scale corruption was able to take root within one of South Africa’s most vital institutions.
