Hawks Remian Tight-Lipped Following High-Profile Arrests

With various measures underway to stabilise state-owned entities, the Hawks are keeping mum on whether there will be more arrests soon.

Last week, two former Eskom managers and two businessmen appeared in the Johannesburg Regional Court for a bail application.

They were arrested by the Hawks on suspicion of fraud, corruption and money laundering related to the construction of the Kusile Power Station in Mpumalanga.

The arrests relate to matters at the troubled Kusile where it’s alleged that kickbacks were paid to receive a major tender.

The past 48 hours have seen South Africans being given some hope regarding struggling SOEs.

Treasury said it was working to accelerate plans to restructure Eskom after ratings agency Fitch opted to keep the sovereign credit rating on hold with a negative outlook.

Treasury, in partnership with the Department of Public Enterprises, is instituting a series of measures to bring discipline to the utility’s finances.

It also wants to step up the timeline for restructuring.

Fitch has warned that failure to form a credible plan to stabilise government debt, exacerbated by bailouts for troubled state-run firms like Eskom, could prompt a downgrade.

Other ratings agencies have regularly cited this as one of the key risks to South Africa’s economy.

With regards to the South African Airways, the business rescue practitioner involved with the airline Les Matuson said he was confident of success in saving the airline from liquidation.

EWN