South African power company Eskom suspended its head of internal audit, Molefi Nkhabu, as it investigates a series of suspicious transactions that he signed off on.
According to a statement from the company, the questionable transactions “contain inferences or conclusions which had the effect of exonerating certain previous Eskom executives implicated in maladministration.”
The power company, which supplies roughly 90 percent of South Africa’s electricity, is investigating the mismanagement of funds and potentially fraudulent dealings, including transactions with Trillian Capital Partners, a local partner of U.S. consulting firm McKinsey & Co. Eskom’s former CFO, Anoj Singh, resigned earlier this year after also being suspended, and its former head of generation, Matshela Koko, resigned in February.
During its annual results presentation in July, Eskom announced it had found R19.6 billion ($1.3 billion) in irregular expenditures when it more closely examined the past six years of its financial records. “The Eskom executive management, whilst espousing the principle of the presumption of innocence, due to the seniority of Mr Nkhabu and the seriousness of the allegations made against him, took a decision that it would be better for him to be suspended until the investigation is finalized. The board and executive management of Eskom are keen and resolute in rooting out maladministration,” the company added in the statement. 