The investigator in the case of former acting Eskom chief executive Matshela Koko detailed in court yesterday how the engineer allegedly used his influence to advance his stepdaughter’s company and benefit his family.
Koko was granted R300,000 bail yesterday by the Middelburg magistrate's court in Mpumalanga after his arrest along with his wife Mosima, stepdaughters Koketso Aren and Thato Choma, as well as five others.
Koko faces five charges of corruption, one of money laundering and one of fraud under schedule five offences, which requires the accused to satisfy the court that interests of justice permit his or her release on bail. He is accused of using his influence at Eskom to award a R2bn contract to engineering company Asea Brown Boveri (ABB) for the building of the Kusile power station in 2015.
ABB subcontracted to a local company, Impulse International, where Choma was a director. The company allegedly received more than R200m from the arrangement. Some of the money was then allegedly directed to other accounts belonging to Koko’s other stepdaughter Aren and his wife Mosima.
An affidavit by the investigating officer, who was unnamed, read out to the court said, Koko used his influence as the CEO of the utility, advance his stepdaughter’s company.
“Impulse was a subcontractor of ABB even though it did not qualify and meet the criteria,” read the affidavit.
According to the investigating officer payments from the contract were traced to Koko and his family members. A confident looking Koko was smiling in court and chatting to journalists as proceedings dragged on partly due to load-shedding.
When asked what he made of the serious allegations levelled against him, Koko who appeared confident, said: “They have set themselves up for failure. All of them have set themselves up for failure. It's probably the right thing that we are here, but they've set themselves up for failure,” he said.
His wife and the two daughters who each faced a charge of corruption, were granted bail of R70 000 each. .
Magistrate Deon van Rooyen said there were no personal circumstances placed before the court as to why they could not pay the proposed amount.
This was on condition that the accused presented themselves to the Middelburg commercial crimes court on 23 March 2023, they handed over their valid and expired passports, and did not contact any witnesses.
Other accused include former SA Local Government Association (SALGA) Chief Executive Thabo Mokwena, Eskom Project Director at Kusile (most senior on site) Hlupheka Sithole, Lawyer Johannes Coetzee and Watson Seswai.
In an affidavit read out by his lawyer Sphelele Zwane, Koko pleaded with the court not to prohibit him to travel out of the country as he conducted business in Zimbabwe, Botswana and Namibia. He further said that he could afford bail of R50 000 while the state called for R500,000.
Said Koko: “I have no previous convictions; I have no pending cases. I am not a flight risk. I have no reason to believe why my release would disturb peace and order.
“I am unemployed and conduct business as a source of income,” he added.
Zwane also argued that the South African government had extradition treaties with the three countries where Koko does business and in the case that he fled, the state would be able to have him returned.
“Mr Koko has been doing business and has been travelling in and out of the country, he has no intention to move to another country. He owes his allegiance to South Africa and his family is here. An amount of 500 000 is not reasonable, it amounts to a refusal of bail,” Zwane said.
The matter also involves about 12 other people as well as companies.
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