THE Organisation Undoing Tax Abuse (Outa) has praised the National Prosecuting Authority (NPA) for extraditing businessman Michael Lomas to face 65 counts of corruption.
This concerns kickbacks he allegedly received from contracts between his firm, Tubular Construction, and Eskom for R1.4 billion’s work on the Kusile power station.
Following many failed court attempts to block the extradition order granted by the UK secretary of state early last year, Lomas, 78, touched down at OR Tambo Airport nine days ago in a wheelchair and under a heavy police escort.
As Outa followed the developments, it praised the NPA for Lomas’s extradition to answer for his alleged crimes and mentioned that it had confidence in the prosecuting authority.
Outa’s investigations manager, Ruddie Heyneke, said: “The extradition of Lomas with his several medical issues marks an important step in bringing him before a South African court. As citizens, we must rely on the NPA to prosecute criminal cases, as they are the only agency responsible for this task.
“Therefore, we believe that the NPA will do its best to prosecute the case and ensure justice is served. Outa believes that a successful prosecution will set an important precedent in holding those involved in large-scale corruption accountable.
“Outa believes that the NPA should be provided with the necessary support, including sufficient human resourcing and funding, to successfully prosecute this case. It is also crucial that the court processes be respected.”
The civil organisation acknowledged that predicting the timeline for a final ruling would be challenging due to various issues including “interlocutory proceedings, witness availability, the defence teams’ readiness, and the allocation of a trial date”.
“However, given the urgency of South Africa’s current situation - particularly with Eskom’s importance to the nation’s energy security - it is in the country’s best interest that justice is served swiftly and efficiently,” said Heyneke.
Outa stated it would closely follow the developments of this case as part of its ongoing commitment to promoting accountability and combating corruption in South Africa.
Lomas is one of five accused of corruption at Kusile power station.
His co-accused are former Eskom group executive for the group capital division, Abram Masango; the former Eskom senior manager for the group capital division, France Hlakudi; as well as owner of Tubular Construction Project Antonio José Trindade; and owner of Babinatlou Business Services, Hudson Kgomoeswana.
Lomas made his first appearance in the Kempton Park magistrate’s court shortly after landing in the country last week. His case was postponed to last Friday, after being referred to the Palm Ridge Specialised Commercial Crimes Court for a formal bail application.
The NPA's Investigating Directorate spokesperson, Henry Mamothame, indicated that Lomas was facing 65 counts of corruption linked to the R1.4 billion that was meant for the upgrade of Eskom’s Kusile power station in Mpumalanga between 2014 and 2017.
He added that after the State’s application for his extradition was opposed, the corruption matter received a boost when on January 30, 2023, the Minister of State Security in the UK signed the extradition documents.
Civil Society Organisation executive director Paul Hoffman said last week on SABC that the kind of corruption Lomas was implicated in affected ordinary South Africans and these cases needed to be prosecuted.
“R1.4 billion has already been seized and is being held, so the money is there – it’s a question of whether the State will be able to prove the allegations against Mr Lomas and his co-accused when the matter eventually comes to trial,” Hoffman said.
“The money in this case is money that belongs to the taxpayers of South Africa and as such we must bear in mind that the corruption here has a direct impact on the people of South Africa,” he said.
Police spokesperson Athlenda Mathe has credited the Hawks investigators for securing the extradition.
She said the NPA requested Lomas's extradition in 2022, but it was delayed as he lodged several appeals which were ultimately rejected.
The SA Federation of Trade Unions’ spokesperson, Trevor Shaku, stated that the courts needed to hear this case immediately.
He highlighted the broader implications of the scandal. Shaku noted that powerful individuals within Eskom and the private sector are now facing the legal consequences of their involvement in the corruption that led to significant cost overruns. It also caused an enormous debt burden for Eskom.
Lomas’s case will be combined with the other suspects’, according to an NPA statement.
thabo.makwakwa@inl.co.za