Trial begins for ex-senior Eskom employee France Hlakudi on R30 million tax fraud case! The trial of former Eskom senior executive France Hlakudi began on Wednesday at the Pretoria Regional Court, where he faces allegations of tax fraud totaling at least R30 million.
This case, coupled with additional charges of corruption tied to Eskom’s Kusile power plant project, highlights serious accusations against the former energy sector leader.
Tax Fraud Charges
According to Henry Mamothame, spokesperson for the Investigating Directorate Against Corruption, the tax fraud charges against Hlakudi stem from his personal tax affairs and those of three companies under his control: Hlakudi Translation and Interpretation CC, Coxinel Chicken (Pty) Ltd, and Bon Services Telcom CC.
The alleged fraudulent activities occurred between 2015 and 2018, a period during which Hlakudi held a senior management position at Eskom.
“The charges detail how several contractors or subcontractors to Eskom paid money to Hlakudi’s companies. At the time these transactions were made, he served as senior manager until his resignation on November 13, 2017,” Mamothame explained.
The trial has been adjourned and will resume on January 21, 2025.
Separate Kusile Corruption Case
In addition to the tax fraud charges, Hlakudi is implicated in a separate high-profile case involving corruption and fraud at Eskom’s Kusile power plant. The case, heard in the South Gauteng High Court in Johannesburg, revolves around allegations of illicit activities totaling R745 million.
Hlakudi is one of four key accused individuals:
- Abram Masango, former group executive for Eskom’s group capital division
- Maphoko Kgomoeswana, a businessman
- Antonio Trindade, CEO of Tubular Construction
Allegations of Bribery and Corruption
Between 2014 and 2017, Hlakudi and Masango allegedly received improper payments totaling R30 million from contractors linked to Kusile. These payments were facilitated by Kgomoeswana through his company, Babinatlou Business Services CC, allegedly acting as a middleman to secure bribes for Eskom’s senior management.
The accusations extend beyond bribery to include:
- Fraud: Misrepresentation of facts for financial gain.
- Corruption: The use of power for unlawful personal benefit.
- Money Laundering: Concealing the origins of illicitly obtained money.
- Offering and Receiving Unauthorized Gratifications: Payments exchanged in violation of proper procedures.
The contractors involved include Antonio Trindade of Tubular Construction and another co-conspirator, Michael Lomas. These individuals allegedly orchestrated payments to secure favorable outcomes for their projects within Eskom.
Broader Implications
The Kusile corruption case is one of the largest financial scandals tied to Eskom, South Africa’s state-owned power utility. The allegations have drawn attention to systemic corruption within the company, contributing to the financial strain and operational challenges Eskom continues to face.
Forensic investigations have revealed extensive networks of bribery and undue influence, with senior executives accused of prioritizing personal enrichment over the public interest. As the cases progress, there is growing public demand for accountability and transparency in the management of state-owned enterprises.
Legal Proceedings
Hlakudi’s tax fraud trial represents just one aspect of his mounting legal battles. The simultaneous Kusile corruption case underscores the gravity of the accusations and the broader implications for governance and ethical conduct in South Africa’s public sector.
While the Pretoria Regional Court focuses on Hlakudi’s tax irregularities, the South Gauteng High Court seeks to untangle the intricate web of corruption tied to Kusile. Both trials serve as a litmus test for South Africa’s commitment to rooting out corruption and restoring faith in its institutions.
Moving Forward
The outcomes of these trials will likely influence broader efforts to address corruption in state-owned enterprises. As one of the most prominent figures implicated in Eskom’s financial scandals, Hlakudi’s cases serve as a warning for public officials who misuse their positions for personal gain.
For now, the country watches closely as the judicial process unfolds, hopeful that justice will prevail and set a precedent for greater accountability in South Africa’s public sector.
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