Eskom Restricts 101 Suppliers for 10 Years over Misconduct

Eskom has restricted 101 suppliers, including company directors and owners, from doing business with the utility for periods of up to 10 years following disciplinary proceedings linked to fraud, corruption, collusion, misrepresentation and other procurement-related misconduct.

The restrictions were imposed between February 2023 and March 31, 2026, covering cases dating back to 2015, although most arose between 2016 and 2022. Eskom said each case was considered by its Supplier Review Committee, which determines sanctions based on the evidence available and the utility’s procurement and governance rules.

The utility now wants to shorten the time taken to deal with new supplier-discipline cases, with Group Chief Executive Dan Marokane saying Eskom is targeting a 90-day turnaround.

“Fraud, corruption, procurement irregularities and supplier misconduct have affected public confidence,” Marokane said, adding that the utility wants misconduct cases to result in fair and meaningful consequences.

Dispute Over Referrals to National Treasury

Eskom’s disclosure follows allegations by the Association of Private Security Owners (TAPSOSA) that 26 black-owned companies among the restricted suppliers were referred to National Treasury without proper process.

Eskom rejected the allegation, saying the affected suppliers went through its internal disciplinary procedures and were given opportunities to respond before decisions were made.

The utility added that the 53 referrals for restriction were made to National Treasury, but only one of the suppliers involved provides security-related services. It also rejected claims that the companies were punished for acting as whistleblowers.

According to Eskom, the cases involved serious integrity breaches rather than ordinary contractual problems such as isolated service-level failures.

Restrictions Extend Beyond Eskom

The consequences can extend beyond Eskom because National Treasury can place suppliers and their directors on the national restricted-supplier database following referrals from state-owned entities.

As of August 20, 2026, National Treasury had listed 35 companies and 45 directors or owners linked to Eskom’s disciplinary process. Those listed are barred from doing business with the State for the applicable restriction periods.

Eskom revealed that more cases are being prepared for referral to National Treasury, while its revised disciplinary process is intended to make future investigations and decisions faster without removing suppliers’ right to respond to allegations.

The utility reitarated that the broader objective is to strengthen procurement controls and ensure that suppliers found responsible for serious misconduct face consequences across the public sector, rather than simply losing access to Eskom contracts.