Progress being made in clawing back money looted from SOEs, Gordhan tells MPs

Public Enterprises Minister Pravin Gordhan gave MPs a brief update on efforts to recover some of the money lost when SOEs were hollowed out by state capture.

FILE: Public Enterprises Minister Pravin Gordhan. Picture: EWN

CAPE TOWN - Public Enterprises Minister Pravin Gordhan said that progress was being made in clawing back money looted from state-owned entities through rampant corruption and state capture.

He updated members of Parliament (MPs) while delivering his budget vote speech on Tuesday.

Minister Gordhan gave MPs a brief update on efforts to recover some of the money lost when SOEs were hollowed out by state capture.

"Chairperson, I have a 20-page report here of the different culprits who have been reported and identified by the SIU, reported to the Hawks and the NPA, of civil claims that have been made, of money that has been acquired."

Gordhan said that evidence before the Zondo Commission into state capture suggested that around R49 billion may have been lost through corruption, but said that some think it could be as much as R1 trillion.

"The law enforcement authorities have been investigating 114 key contracts, 33 high-profile criminal investigations involving multiple parties, including former board members and executives of SOEs. This includes various third parties such as the companies and individuals who facilitated state capture."

Gordhan said that significant progress had been made in several recoveries.

"ABB, an engineering company associated with the new power plants in Eskom, repaid R1.5 billion to Eskom, while consultancy firm McKinsey has repaid R1bn to Transnet, A R171m claim against Deloitte has been launched, another R870m between McKinsey and Transnet is about to be settled and many claims have been made against other companies alleged to have received payments for fraudulent contracts."

Gordhan said that it was a long and arduous task to put SOEs onto a new footing and that there was no quick fix available.

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