Nonprofit organisation Corruption Watch last week issued an urgent request to the National Treasury to investigate the manner in which State-owned power utility Eskom managed its contracts with existing suppliers and its general adherence to supply chain processes, including its vetting processes.

Corruption Watch issued a statement on Monday stating that it was particularly disturbed by the lack of proper planning and risk analysis regarding the procurement of goods and services at Eskom.

The organisation’s letter noted that Eskom breached its own supply chain policy, the Public Finance Management Act, and requirements of Section 217 of the Constitution, in its pre-payment for coal supplied by mining company Tegeta Exploration and Resources.

Corruption Watch executive director David Lewis said his organisation was concerned about the nature and scale of procurement irregularities at the power utility.

“The failure to plan for the provision of goods or services is not a justification for obtaining emergency procurement, especially when it appears to have been approved without conducting proper due diligence,” added Lewis.

Lewis said these regularities could potentially impact South Africa’s  economy significantly, as well as distort the proper use of taxpayers’ money and compromise efficiency in the delivery of services.