In a significant development, the former head of Tubular Construction, a company once contracted by South Africa’s troubled power utility Eskom, is being extradited from Britain.
Michael Lomas, who previously served as the board chairman, was detained in London on April 15, 2021.
On Thursday, South African police confirmed that Lomas is expected to arrive in Johannesburg early Friday morning.
Allegations of Contract Manipulation
Lomas faces serious allegations of fraud and corruption linked to his time as an Eskom contractor.
According to Brigadier Athlenda Mathe from the South African Police Services, Lomas is wanted for his involvement in fraudulent activities totaling over R1.5 billion.
These alleged crimes took place between 2008 and 2018 at the Kusile Power Station.
Mathe revealed that Lomas had reportedly manipulated contracts and had been previously arrested, released on bail, and then fled to the UK.
Handing Over to Elite Police Unit
Upon his arrival in South Africa, Lomas will be handed over to the Hawks, the country’s specialized police unit that tackles major crimes.
He faces charges related to kickbacks and inflated costs associated with the construction of Kusile Power Station.
Lomas’s indictment includes four other suspects: two former Eskom executives and two businessmen, all of whom were arrested in December 2019.
Eskom’s Ongoing Struggles
Eskom, a major state-owned enterprise in South Africa, has been grappling with the fallout from years of alleged mismanagement.
The utility, which provides most of the country’s electricity from coal-fired plants, has been plagued by frequent breakdowns and blackouts since 2008.
Although power outages have somewhat eased since May, Eskom’s attempts to resolve the crisis have been hampered by ongoing issues.
The construction of Kusile, along with another new power plant, was intended to address these power shortages.
However, both projects have been marred by construction flaws and corruption controversies.
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