SIU Welcomes Extradition of Michael Lomas in Eskom’s R745 Million Kusile Fraud Case

by Selinda Phenyo
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Fugitive Michael Lomas Arrives in South Africa After Extradition from UK to Face R1.5 Billion Graft Charges

By Mpho Moloi

The Special Investigating Unit (SIU) has welcomed the extradition of Michael Lomas, a former Eskom contractor implicated in fraud and corruption related to the construction of Eskom’s Kusile Power Station. Lomas, who had fled to the United Kingdom in 2017, was finally extradited to South Africa in September 2024 after a lengthy legal battle. He is one of five individuals facing charges related to the misappropriation of R745 million linked to contracts awarded at Kusile.

Lomas was initially arrested in April 2021 in the UK following an extensive investigation by the SIU, which uncovered a complex web of corruption, fraud, and money laundering involving Eskom officials and contractors. His extradition marks a critical moment in the ongoing investigation into financial misconduct at Eskom.

Upon his arrival at OR Tambo International Airport on 20 September 2024, Lomas was handed over to the Hawks and later appeared in the Kempton Park Magistrates’ Court. His case was postponed to 27 September 2024, where he is expected to face a formal bail hearing at the Palm Ridge Specialised Commercial Crimes Court.

Background to the Case

The allegations against Lomas and his co-accused revolve around fraudulent contracts awarded as part of the construction of air-cooled condensers at Kusile between 2014 and 2017. The SIU’s investigation, which began in 2018 under Proclamation R11, identified several irregularities in Eskom’s procurement and contracting processes, particularly in relation to payments made to contractors. Lomas is accused of manipulating contracts, resulting in the siphoning of R745 million from the state-owned entity, contributing to the broader financial crisis Eskom has faced.

Lomas’ co-accused include Abram Masango, former Eskom Group Executive for Capital Division; France Hlakudi, former Senior Manager at Eskom; Antonio José Trindade, CEO of Tubular Construction Projects; and Hudson Kgomoeswana, owner of Babinatlou Business Services. All five individuals have been charged with fraud, corruption, and money laundering.

SIU and Public Response

The SIU has commended the efforts of the National Prosecuting Authority (NPA), the Hawks, and their international counterparts in securing Lomas’ extradition. This move is seen as part of a broader strategy to hold accountable those responsible for the corruption that has plagued Eskom and contributed to the ongoing electricity crisis in South Africa.

Public reaction to the extradition has been largely positive, with anti-corruption activists and civil society groups, such as Corruption Watch, praising the authorities for their persistence in bringing Lomas to justice. The public outcry against corruption at Eskom has intensified in recent years, particularly as the power utility struggles with financial mismanagement, load-shedding, and operational inefficiencies.


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