Eskom says a R500m budget for a security contract with Fidelity Services in 2022 was above board and in line with procedures and directives from treasury for emergency procurement of services.

The power utility says the appointment of a security company was deemed necessary after management received information about a potential serious security risk to Eskom’s operations and assets. The contract ran from July to September 2022 and R500m was budgeted.

Security services rendered included the protection of critical power stations, strategic corporate sites and the transmission network.

However, after constantly monitoring activities and paying invoices over three months, the power utility says it eventually only spent R250m.

Eskom says it is aware of reports on various media platforms of ‘unverified messages and claims of corruption and fraud linked to the R500 million contract’.

It was previously reported by several national media outlets that the contract was procured by former Eskom CEO André de Ruyter and head of security Karen Pillay.

“Given the seriousness of such allegations, Eskom will work with the relevant authorities on any investigation. In addition, Eskom encourages anyone with any credible evidence on concerns relating to this matter to contact the authorities,” a statement by the power utility reads.