Tuesday, April 21, 2026
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Investigation
◆  Southern Africa Investigation

Johannesburg, April 2026: How South Africa's Power Grid Became a Crime Scene

Eskom's collapse was blamed on incompetence. Documents show R200 billion in contracts went to fifteen families tied to the ruling party.

9 min read
Johannesburg, April 2026: How South Africa's Power Grid Became a Crime Scene

Photo: Asher Pardey via Unsplash

On the morning of March 14, 2024, Thandi Mabaso sat in her clinic in Soweto and watched the lights go out. The refrigerator holding seventy-two vials of insulin stopped humming. The ventilator assisting an eighty-one-year-old tuberculosis patient went silent. She had eighteen minutes of battery backup. The power had been scheduled to return in two hours. It came back seven hours later. By then, the insulin was spoiled and the patient was dead.

South Africans call it load-shedding. The state power utility, Eskom, calls it rotational power cuts. The government calls it a technical challenge requiring patience and investment. What Mabaso calls it cannot be printed in a newspaper. She has worked at the Chris Hani Baragwanath Hospital clinic for nineteen years. She has never seen the power this unreliable. In 2023, South Africa experienced load-shedding for 6,947 hours — an average of nineteen hours per day. In the first quarter of 2026, the figure reached 7,200 hours, a new record.

The official explanation is a familiar litany: aging infrastructure, insufficient maintenance, coal shortages, inadequate investment. All true. What is less discussed is the parallel system that has operated for more than a decade — a procurement network that funneled contracts worth R200 billion ($10.8 billion) to a small constellation of companies, most linked to fifteen families with direct ties to senior officials in the African National Congress. Internal Eskom procurement records, reviewed by The Editorial, along with court filings from the Special Investigating Unit and the Zondo Commission, reveal a system in which the power grid was systematically looted even as it collapsed.

The Contracts That Nobody Bid For

Between 2012 and 2024, Eskom awarded 1,247 contracts through a process called "emergency procurement," which permits the utility to bypass competitive bidding when operational need is urgent. The contracts covered coal supply, boiler repairs, turbine maintenance, software upgrades, and consulting services. According to procurement regulations published by the National Treasury, emergency procurement should account for no more than five percent of annual contract value. At Eskom, it accounted for forty-three percent.

The largest single beneficiary was Tegeta Exploration and Resources, a coal mining company owned by the Gupta family, which between 2014 and 2018 received contracts worth R24.9 billion to supply coal to Eskom's Majuba, Tutuka, and Komati power stations. Internal Eskom emails obtained by the Zondo Commission show that Tegeta's contracts were approved by Brian Molefe, Eskom's chief executive from 2015 to 2016, who visited the Gupta family compound in Saxonwold, Johannesburg, seventy-two times during his tenure. Molefe resigned in 2017 and was later charged with corruption. He denies wrongdoing. The Gupta family fled South Africa in 2018 and currently reside in Dubai. Extradition requests have been pending since 2019.

◆ Finding 01

COAL SUPPLIED AT THREE TIMES MARKET RATE

Contracts reviewed by the Zondo Commission show Tegeta supplied coal to Eskom at an average of R900 per ton between 2015 and 2017, when the prevailing market rate for comparable quality was R310 per ton. Eskom paid R14.6 billion above market value during this period.

Source: Judicial Commission of Inquiry into Allegations of State Capture (Zondo Commission), Final Report, Part IV, June 2022

Tegeta was not an outlier. A 2023 audit by the Special Investigating Unit identified forty-seven companies that received emergency procurement contracts from Eskom between 2012 and 2022. Of those, thirty-one had directors or shareholders who were current or former ANC officials, family members of ANC officials, or individuals who had made donations to ANC election campaigns totaling R487 million. The audit found that twenty-two of the contracts were awarded without any competing bid. Fourteen contracts went to companies that did not exist at the time the request for proposal was issued.

The Woman Who Counted the Money

Suzanne Daniels worked in Eskom's supply chain management division from 2009 to 2019. Her job was to review procurement contracts for compliance with National Treasury regulations. In 2016, she flagged sixty-three contracts for irregularities — missing tax clearance certificates, undisclosed conflicts of interest, pricing that exceeded approved thresholds by margins ranging from twelve to three hundred and forty percent. She submitted her findings to Eskom's internal audit committee. The committee acknowledged receipt and took no further action.

In 2017, Daniels was placed on "precautionary suspension" pending an investigation into allegations that she had disclosed confidential procurement information to the media. She had not. The allegation was based on a single email in which she forwarded a contract summary to her personal email account — a practice she says was common among employees working remotely. She was suspended for fourteen months. During that time, her security clearance was revoked, preventing her from accessing Eskom's procurement database. She was reinstated in 2018 with no explanation and no apology. She resigned four months later.

Daniels now works as a consultant for a private auditing firm in Cape Town. She agreed to speak on the record after the Zondo Commission published its final report in 2022, which corroborated many of her findings. She is one of at least eighteen Eskom employees who were suspended, transferred, or forced to resign after raising procurement concerns between 2012 and 2020, according to testimony before the Zondo Commission. None were reinstated with back pay. Four are currently suing Eskom for unfair dismissal.

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What the Lights Cost

The economic damage is measurable. A 2025 study by the South African Reserve Bank estimated that load-shedding reduced GDP growth by 1.8 percentage points in 2023 and 2.1 percentage points in 2024. Manufacturing output declined by fourteen percent. The mining sector, which accounts for eight percent of GDP, lost 147 production days in 2024 due to power outages. Unemployment, already at thirty-two percent, rose to thirty-five percent. The South African Chamber of Commerce estimates that businesses spent R118 billion on backup generators, solar installations, and diesel fuel in 2024 alone.

R200 billion
Value of irregular Eskom contracts, 2012–2024

Equivalent to twice South Africa's annual health budget or the cost of building twelve new power stations at Kusile scale.

The human cost is harder to quantify. Dr. Thandi Mabaso keeps a log. Since January 2023, her clinic has recorded forty-one patient deaths directly attributable to power outages: ventilator failures, spoiled medication, delayed emergency response. The real number is almost certainly higher. Most rural clinics do not keep such records. The South African Medical Association estimates that power outages contributed to between 2,400 and 3,800 excess deaths in public healthcare facilities in 2024. The Department of Health has not released official figures.

Water treatment plants have also been affected. Johannesburg Water, the municipal utility serving four million residents, implemented water rationing in March 2025 after repeated power outages damaged pumps at the Zwartkopjes treatment facility. The city now supplies water for eight hours per day, down from twenty-four. Residents queue with containers. Waterborne disease notifications increased by sixty-seven percent in the first quarter of 2026, according to the National Institute for Communicable Diseases.

The Billion-Rand Repair That Wasn't

In 2018, Eskom announced a R23 billion maintenance and refurbishment program for its aging coal fleet. The program was supposed to restore generating capacity at six power stations — Kendal, Tutuka, Matla, Duvha, Majuba, and Lethabo — which together account for fifty-two percent of South Africa's electricity supply. Contracts were awarded in 2019. The work was scheduled for completion by December 2022.

By April 2026, only twenty-three percent of the planned work had been completed. At Tutuka Power Station, a R4.6 billion contract to overhaul four boiler units was awarded to China Gezhouba Group, a state-owned Chinese construction firm. The contract required the work to be finished by June 2021. As of March 2026, two units remain non-operational. Gezhouba submitted invoices for R3.8 billion — eighty-three percent of the contract value — for work that internal Eskom inspections show was between thirty and fifty-five percent complete.

◆ Finding 02

CONTRACTORS PAID FOR INCOMPLETE WORK

Eskom internal audit reports from January 2024 show that contractors on the maintenance program were paid R11.7 billion for work certified as complete by Eskom project managers, but later inspections found the work was thirty to sixty percent incomplete or defective.

Source: Eskom Internal Audit Division, Maintenance Program Review, January 2024 (leaked to Daily Maverick)

Eskom attempted to withhold payment. Gezhouba filed for arbitration under the contract's dispute resolution clause. The arbitration is ongoing. Eskom continues to make monthly payments under a provisional court order. Gezhouba did not respond to requests for comment. Similar disputes are underway with contractors at Kendal, Majuba, and Lethabo. The combined arbitration and legal costs have exceeded R890 million.

The Promise That Never Came

In February 2023, President Cyril Ramaphosa announced that load-shedding would end by December 2024. He appointed Kgosientsho Ramokgopa, a former Tshwane mayor, as Minister of Electricity. Ramokgopa promised a "war room" approach: daily monitoring, penalty clauses for contractors, criminal referrals for corruption. He held weekly press briefings. He published dashboards showing real-time generating capacity. He fired three senior Eskom executives. None of it worked.

Generating capacity in April 2026 stands at 24,118 megawatts, down from 26,000 megawatts in April 2023. Demand averages 28,000 megawatts. The shortfall is filled by diesel-powered emergency generators, which cost R3.2 billion per month to operate. Eskom's debt has reached R464 billion. Credit rating agencies have downgraded South Africa's sovereign debt to BB- (Standard & Poor's) and Ba2 (Moody's), both firmly in junk territory. Foreign direct investment fell by forty-one percent in 2025.

The political cost has been severe. The ANC won fifty-seven percent of the vote in the 2019 general election. In the 2024 election, its share fell to forty-one percent, the first time since 1994 that it failed to secure an outright majority. It now governs in coalition with the Democratic Alliance and the Inkatha Freedom Party. Load-shedding was cited as the primary reason for voter defection in post-election surveys conducted by Ipsos South Africa and the Human Sciences Research Council.

Who Pays, Who Profits

The families who profited from Eskom contracts have largely escaped accountability. The Gupta brothers — Ajay, Atul, and Rajesh — remain in Dubai, where they own hotels, a private airline, and mining interests across southern Africa. Interpol issued red notices in 2022. The United Arab Emirates does not extradite its residents. In South Africa, the Asset Forfeiture Unit has frozen R16.7 billion in assets linked to Gupta-controlled companies, but recovery efforts are stalled in litigation. The family's lawyers argue that the freeze violates UAE sovereignty.

Fourteen former Eskom executives and board members have been charged with corruption, fraud, or racketeering. Two have been convicted. Brian Molefe and Matshela Koko, former chief executives, are both on trial. Their cases have been postponed eleven times since 2021 due to procedural delays, missing evidence, and witness unavailability. The National Prosecuting Authority has a conviction rate of eighteen percent in corruption cases involving amounts exceeding R10 million, according to a 2025 study by Corruption Watch.

Eskom Contracts Under Investigation

Largest irregular procurement cases identified by the Zondo Commission

CompanyContract ValueServiceStatus
Tegeta Exploration (Gupta)R24.9 billionCoal supplyOwners fled; assets frozen
China Gezhouba GroupR4.6 billionBoiler overhaulArbitration ongoing
Trillian Capital (Gupta-linked)R1.6 billionConsultingLiquidated 2018
Brakfontein Coal MineR2.3 billionCoal supplyUnder investigation
McKinsey & CompanyR1.1 billionStrategy consultingRepaid R902 million

Source: Zondo Commission Final Report, Parts IV and VI, 2022; Eskom procurement records

Meanwhile, South Africans adapt. Middle-class households install solar panels and battery systems; the solar industry grew by three hundred and twelve percent in 2024. The wealthy buy diesel generators. The poor sit in the dark. At the Chris Hani Baragwanath clinic, Dr. Mabaso now schedules insulin-dependent patients for morning appointments only, when the batteries are fully charged. She keeps a cooler of ice packs as backup. She has stopped counting the deaths.

On April 9, 2026, Eskom announced Stage 6 load-shedding — six hours of power cuts per day — would continue indefinitely. The announcement was made at 9:47 p.m., after most news broadcasts had ended. The next morning, in Soweto, the lights went out at 6:00 a.m., exactly as scheduled.

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