Maladministration probe ordered into Eskom, Transnet

President

Cyril Ramaphosa has ordered the country's Special Investigating

Unit (SIU) to probe allegations of maladministration at state

run-power utility Eskom and logistics group Transnet, the

government said on Friday.

Ramaphosa, who replaced former president Jacob Zuma in

February, has made the fight against corruption a key plank of

his administration as he seeks to restore investor confidence

after the scandal-plagued Zuma era.

The announcement of the probe was published in the

government gazette.

The SIU, which investigates malpractice in state

institutions, state assets and public money, will investigate

among other things, "unauthorised, irregular or fruitless and

wasteful expenditure" incurred by Eskom and Transnet.

Eskom has been embroiled in allegations of corruption

relating to a 1.6 billion rand ($130 million) contract that

global consultancy McKinsey worked on with Trillian, a local

company that was then controlled by Gupta family who are accused

of using their access to Zuma to win state contracts.

Zuma and the Guptas have denied any wrongdoing

Transnet, which is also state-owned, has been investigating

irregularities in the awarding of a 54 billion rand ($5 billion)

contract to acquire locomotives in 2014.

Eskom spokesman Khulu Phasiwe said: "This matter has been a

long time coming and we are happy that the SIU is starting this

process."

Transnet was not immediately available for comment. 

Reuters