Eskom has found no evidence that diesel paid for under controversial emergency supply contracts went missing, but an independent investigation has identified governance failures involving about R3 billion in payments to three suppliers.
The investigation examined diesel procurement and storage contracts used during severe pressure on South Africa’s electricity system in early 2025.
Independent reconciliation and physical verification found no discrepancies between the diesel Eskom paid for and the fuel that was delivered, consumed, held in storage or available for scheduled delivery.
A separate legal assessment also did not substantiate allegations that the original tender award process had been compromised.
R3bn in payments outside contractual terms
While the investigation found no missing diesel, Eskom said it confirmed payments made outside contractual terms and emergency approvals that did not comply with its Delegation of Authority.
The affected payments totalled about R3 billion across three suppliers.
This is substantially lower than the roughly R21 billion in irregular diesel contracts Eskom flagged in interim findings released in May 2026.
Eskom stressed that the latest finding primarily relates to failures in governance and approval processes rather than missing diesel or an identified financial loss.
Emergency diesel purchases under scrutiny
Some of the unusual payment arrangements were introduced as Eskom scrambled to secure fuel between January and March 2025.
At the time, deteriorating generation performance and load shedding placed heavy demands on Eskom’s diesel-fired open-cycle gas turbines.
The utility said affected controls included tender probity reviews, which were discontinued in 2022 on cost grounds and only fully reinstated in late 2025.
“Operational pressures do not diminish our obligation to comply fully with internal controls and governance requirements,” Eskom CEO Dan Marokane said.
Eskom refers matters to the Hawks
Eskom has referred certain matters arising from the investigation to the Hawks.
The utility said consequence-management and supplier-review processes are also under way.
Eskom separately disclosed a historical governance issue involving about R38 billion in irregular expenditure under fuel-supply contracts dating from 2019.
No financial loss has been identified in that matter either, according to Eskom, and it is being investigated separately.
Eskom’s diesel use drops sharply
The findings come as Eskom’s dependence on diesel has fallen significantly.
Improved generation performance since mid-2025 has pushed year-to-date diesel consumption down by more than 83% compared with the same period last year.
While the investigation found that the diesel Eskom paid for was accounted for, the R3 billion in payments outside contractual terms has shifted the focus to the utility’s internal governance and approval processes.
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