SIU strikes on employee involved R54 million Eskom procurement scandal

The Special Investigating Unit (SIU) has obtained a preservation order to freeze a luxury property in Bendor, Polokwane, and a motor vehicle belonging to an Eskom employee and his wife.

The order, granted by Judge M Victor, prevents Eskom surveyor and project manager, Johannes Seroke Mfalapitsa, his spouse Ndiyafhi Denge, and others from selling or dealing with the assets.

This follows an investigation that uncovered an alleged bribery and corruption scheme where they received approximately R8 million in payments from companies unlawfully favoured in a R54 million tender.

SIU spokesperson Kaizer Kganyago said that the investigation revealed that a close-knit network of family and friends facilitated the alleged corruption.

Mfalapitsa was the “Employer’s Agent” and a technical evaluator for Eskom’s R54 million tender for High-Definition Surveying Services.

His spouse ultimately received over R2.2 million from the scheme, while his brother, David Mfalapitsa, received over R228,000 from a service provider’s director.

The network extended to Mpho Negondeni, who Mfalapitsa’s spouse “raised as her own child,” and her company Tabogambambe (Pty) Ltd, which was used as a conduit.

Over R3.6 million flowed from service providers to them, which was then used to pay for the construction of the Bendor property and to make payments to Denge.

The investigation also uncovered a close relationship between Mfalapitsa and Bulelani Lengoasa, the director of Buzwe Geomatics Engineering Services (Pty) Ltd.

Lengoasa personally paid Mfalapitsa’s brother and made payments exceeding R155,000 directly to contractors building the swimming pool and balustrades at the Bendor property.

Systemic corruption and diversion of Eskom Funds

The SIU said that Mfalapitsa held several contradictory roles throughout the tender process, breaching Eskom’s Conflict of Interest Policy.

He assisted in drafting the scope of work, participated in evaluating bidders’ technical submissions, and ultimately served as Project Manager for the winning contractor.

During this period, his spouse was already receiving payments from one of the bidders, NTG Solutions CC—a relationship he failed to disclose in his annual conflict of interest declarations from 2016 to 2024.

The SIU has since recommended disciplinary action, and he is currently under suspension.

A forensic review of financial records shows how Eskom funds were diverted for private benefit. Under the disputed contract, Eskom paid more than R29 million to three service providers—Buzwe, NTG Solutions, and Litha Langa Consulting.

These firms then made a pattern of round-figure, non-VAT payments to companies and individuals connected to Mfalapitsa.

Buzwe, which received the largest portion of the contract (25%), channelled roughly R7 million into his network.

Kganyago said the evidence also indicates that Mfalapitsa steered work towards Buzwe, contrary to his supervisor’s guidance.

The redirected funds were used to procure building materials, pay contractors, and finance luxury upgrades, including a swimming pool and balustrades, at the Bendor property registered in his spouse’s name.

The preserved assets

The order explicitly preserves two key assets believed to be proceeds of the scheme.

The first is the Immovable Property: Bendor, Limpopo, valued at about R3.9 million, with the SIU asserting that at least R1.5 million of its construction costs derive from unlawful payments.

The second asset is a Motor Vehicle: a Nissan NP200, which investigations show Mfalapitsa obtained from another Eskom employee using funds linked to the scheme.

This preservation order is a temporary step to safeguard the assets for future recovery, as the SIU prepares civil action to challenge Eskom’s tender award to Buzwe, NTG, and Litha Langa, and to recover losses incurred by the state.