By Calvin Augustine*
Our country is making every effort in line with our Energy Action Plan to address our energy challenges. Interventions are underway to bring new sources of electricity online as well as ensure a reliable energy supply from existing generation units.
Our efforts to reduce the frequency of load shedding in the short term and achieve energy security in the long term is however being undermined by unscrupulous individuals bent on making a quick buck.
A network of coal smugglers operating across the country have been diverting coal trucks destined for power stations to coal yards where the high-grade coal on these trucks are replaced with low-grade coal.
The low-grade coal is often blended with scrap or other materials and then delivered to our power stations. When this inferior coal is used, it leads to breakdowns in our power stations and is the major factor behind our inability to generate sufficient electricity.
This single criminal act directly affects every South African household and business struggling with the effects of load shedding. This in turn has a detrimental effect on our economy, curtailing economic growth, constraining job creation and deterring investment.
Coal smuggling and other forms of wilful damage to critical infrastructure is economic sabotage and government has activated the National Joint Operational and Intelligence Structures (NATJOINTS) to unmask and bring these criminals to account.
The NATJOINTS established the Energy Safety and Security Priority Committee to address the disruption of operations and critical infrastructure involving the national power system. The committee coordinates all efforts to deal with attempts to weaken the stability of the power grid.
At the heart of its efforts is the sharing and analysis of information relating to energy security and ensuring a coordinated response to incidents that threaten our energy security. This has led to a focus on illegal coal yards, the illegal trade in fuel oil and other forms of infrastructure crime that contribute directly to load shedding.
Last year the committee spearheaded a massive inter-governmental search and seizure operation across Gauteng, Mpumalanga, KwaZulu-Natal, the Free State and Limpopo to break the back of the criminal syndicate of coal-smugglers.
A multidisciplinary team supported by the South African Revenue Service (SARS) carried out search and seizure operations targeting coal smuggling syndicates. Documents were seized from individuals alleged to have committed a range of offences including procurement fraud, tax crimes and coal diversion.
Also targeted were former Eskom employees who facilitated procurement fraud, as well as other individuals involved in the diversion of high-grade coal. The targeted operation has helped prevent more than R500-million loss of revenue to the fiscus.
Moreover, in support of efforts to scupper illegal coal yards, the Department of Forestry, Fisheries and the Environment conducted tactical operations in Mpumalanga to assess compliance to the country’s Environmental Impact Assessment Regulations.
It evaluated the surface areas of coal storage and coal processing facilities, as well as how these facilities conducted their operations. Follow-up compliance inspections were undertaken to ensure enforcement orders were adhered to.
There have been more than 234 arrests from operations by the Energy Safety and Security Committee and over R260 million worth of items confiscated. The Asset Forfeiture Unit is also playing an important role in ensuring that those implicated in corrupt activities are unable to hide their ill-gotten gains from the law.
A number of investigations by the Special Investigating Unit into Eskom-related corruption continue to yield results. We have seen coal supply agreements valued at approximately R3.7 billion having been declared invalid through litigation, and coal supply agreements and construction contracts valued at R10 billion have been set-aside.
Through the NATJOINTS Energy Safety and Security Priority Committee government is disrupting and unravelling the operations of criminal networks that have far too long enriched themselves off Eskom. The impunity that has allowed many to believe themselves beyond the reach of the law is a thing of the past.
Corruption steals resources that are meant for the benefit of citizens and improving their lives. Let us work together to ensure that these coal syndicates have nowhere to hide and that they do not benefit from their crimes. We urge the public to report information regarding fraud, the theft of coal, fuel oil, diesel and other crimes to the Eskom Crime Line: 0800 11 27 22.
Calvin Augustine is Deputy Director: Communication Resource Centre at GCIS
