A British businessman, Michael Lomas, has been extradited from the United Kingdom to South Africa, where he faces 65 counts of corruption related to contracts with Eskom, the beleaguered South African power utility. Lomas, a former contractor for Eskom through his company, Tubular Construction, is accused of taking kickbacks on projects worth over R1.4 billion (£60 million). The contracts in question pertain to the construction of the Kusile power station, a project intended to alleviate South Africa’s chronic power shortages but plagued by delays and mismanagement.
Lomas, who was apprehended upon his arrival at OR Tambo International Airport in Johannesburg, was transported under heavy police escort and appeared in a wheelchair due to reported health issues. As a condition of his extradition, a medical doctor accompanied him on the flight from the UK. His brief appearance at Kempton Park Magistrate’s Court resulted in an adjournment, with further hearings expected as his case will be merged with those of 11 alleged co-conspirators.
The National Prosecuting Authority (NPA) of South Africa, which initiated the extradition request in 2022, revealed that Lomas had previously been arrested in connection with the Eskom contracts but fled to the UK after being granted bail. His appeals to delay extradition were ultimately rejected by UK courts, leading to his return to South Africa.
Lomas’s alleged co-conspirators include senior Eskom executives and other businessmen who are accused of inflating the costs of contracts at the Kusile power station. These fraudulent actions are said to have contributed to Eskom’s deepening financial woes and South Africa’s energy crisis. The Kusile project, marred by both technical faults and significant delays, has failed to deliver the electricity that was anticipated, exacerbating the nation’s rolling blackouts, known locally as “load shedding.”
Eskom, a state-owned entity that dominates South Africa’s energy sector, has been embroiled in numerous corruption scandals, with executives implicated in various malfeasances over the years. The utility is currently grappling with a legacy of systemic mismanagement, which has left it unable to provide consistent electricity to the national grid, triggering an ongoing energy crisis that has paralysed key sectors of the South African economy.
The charges against Lomas and his co-accused include fraud, money laundering, and corruption, with allegations that kickbacks were paid to secure lucrative contracts and inflate prices for work carried out at the Kusile site. This has drawn public outrage, given that the project was meant to alleviate electricity shortages but instead has become synonymous with corruption and inefficiency.
The Hawks, South Africa’s police unit specialising in economic crimes, have been investigating this case since 2017. An employee at Eskom initially flagged concerns over a tender process, which triggered the investigation. Brigadier Athlenda Mathe, spokesperson for the South African Police Service, confirmed that Lomas will be handed over to the Hawks for further processing. Lomas has not yet commented on the charges.
The case against Lomas and his co-defendants is set to be one of the most significant corruption trials in recent South African history, as the country seeks to hold those responsible for Eskom’s failures to account.
