Michael Lomas
By Thabo Mosia
Michael Lomas, a former contractor for Eskom, remains in custody as his high-profile R1.4 billion corruption case unfolds. The case was transferred from the Palm Ridge Regional Court to the Johannesburg High Court, with Lomas set to appear alongside 11 co-accused on 3 December 2024. The charges, linked to corruption allegations surrounding Eskom’s Kusile power station upgrade project, underscore deep-rooted issues of financial misconduct within South Africa’s state-owned enterprises.
Background on the Case
Lomas, alongside senior Eskom executives and directors from Tubular Construction Projects, faces 65 counts of corruption related to the R1.4 billion that was earmarked for the Kusile power station upgrade between 2014 and 2017. The funds, which were meant to enhance South Africa’s energy infrastructure, allegedly went towards illicit payments and misappropriated contracts.
The case shines a spotlight on extensive corruption within Eskom, which has been plagued by financial irregularities and alleged mismanagement over the past decade. The scandal involving Kusile is seen as one of the most significant, with investigators working to piece together the money trail that allegedly led to personal bank accounts and shell companies.
Legal Proceedings and Bail Considerations
Lomas, who was extradited from the UK in September 2024, is currently held in custody after choosing not to apply for bail. His legal representative, Advocate Mannie Witz, noted logistical challenges regarding Lomas’ bail application. “To apply for bail, you must show the court on the balance of probabilities that this is a Schedule 5 matter and that it’s in the interest of justice to release him,” said Witz. Complicating matters, Lomas, 77, has no permanent address in South Africa, which is essential for bail considerations.
Witz explained that Lomas had moved back to the UK in 2017 and had since been residing there. Health concerns also factor into his current situation, as Lomas recently sustained injuries in prison, allegedly from a fall in his cell when the lights went out. “His hand is badly cut, and his nose was bleeding,” Witz informed the court, clarifying that prison authorities were not responsible for the incident.
Extradition and International Legal Challenges
Lomas’ extradition marks a significant development in South Africa’s efforts to hold foreign nationals accountable in large-scale corruption cases. He was arrested by UK authorities on 15 April 2021, following a request from South African prosecutors, and was released on bail in the UK until his extradition in September. During this period, Lomas filed multiple appeals to avoid returning to South Africa, including an unsuccessful appeal to the European Court of Human Rights.
IDAC (Investigating Directorate Against Corruption) spokesperson Henry Mamothame described the extensive legal battle involved in bringing Lomas to justice. “The extradition order was signed by the minister of state security in the UK on 30 January 2023, following which Lomas lodged four appeals,” Mamothame said. All appeals were ultimately dismissed, paving the way for his transfer to South Africa.
The Broader Implications of the Kusile Scandal
The Kusile power station project, which was meant to address South Africa’s energy crisis, has instead become a symbol of corruption. Allegations that senior Eskom officials and contractors colluded to misappropriate funds intended for infrastructure development have fuelled public outrage. The Asset Forfeiture Unit has already been granted a restraint order, effectively freezing assets linked to the accused individuals, valued at approximately R1.4 billion.
As one of the most significant corruption cases linked to Eskom, the outcomes of this trial could set a precedent for accountability within state-owned enterprises. The Eskom crisis has not only hindered the country’s power generation capacity but has also affected investor confidence. The Kusile case highlights the urgent need for systemic reform and greater transparency within the utility.
Statements from Investigating Authorities
The Hawks and IDAC have emphasised the importance of this case in demonstrating South Africa’s commitment to fighting corruption. The investigative teams have worked to uncover financial documents, contracts, and witness testimonies that will be central to the prosecution’s case. “This investigation is part of our broader mandate to combat financial crimes, particularly within institutions that are critical to our nation’s infrastructure and development,” said Mamothame.
Following the court appearance of the other 11 accused individuals, including former Eskom executives and Tubular Construction Projects directors, a restraint order was issued on assets tied to the case. These measures are aimed at recovering some of the losses incurred by Eskom and ensuring that those involved in financial misconduct are held accountable.
Next Steps and High Court Proceedings
With the case now transferred to the Johannesburg High Court, Lomas and his co-accused are set to face an extensive trial process. The charges involve multiple counts of corruption, fraud, and racketeering, which could result in severe penalties if the accused are found guilty. One of the 11 co-accused recently submitted a medical application to have charges against him dropped due to health concerns, with the State awaiting medical assessments to determine his ability to stand trial.
As the 3 December High Court date approaches, South Africans will be closely watching the proceedings, hopeful that the trial will bring closure to one of Eskom’s most significant corruption scandals. The outcomes could play a crucial role in restoring public trust and reinforcing the nation’s stance against corruption in state enterprises.
At the time of publication, the Department of Correctional Services had not issued a response regarding the conditions under which Lomas sustained injuries in custody.
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