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0 News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/eskom-launches-investigation-into-multi-billion-rand-prepaid-meter-fraud-scheme/
Eskom, South Africa’s state-owned power utility, is conducting a forensic investigation into a sophisticated electricity theft operation involving fraudulent prepaid meter tokens, which is believed to have cost the company billions of rand in lost revenue.
The investigation, which has caused delays in the release of Eskom’s 2024 financial results, is also examining potential employee collusion and breaches within the company’s IT systems.
Eskom board chairman Mteto Nyati confirmed that the investigation into the illicit token operation was a significant factor behind the delay, as the utility works to determine the full scale of the losses. The scheme is suspected to involve Eskom staff who may have exploited weaknesses within the prepaid electricity system to facilitate the creation and sale of fake tokens.
The utility estimates that it lost 13.9 terawatt hours (TWh) of electricity to theft in 2024, equating to roughly $1.2 billion in lost revenue. While illegal connections and meter tampering are factors in these losses, CEO Dan Marokane noted that the fraudulent prepaid token scheme was far more sophisticated, involving internal system breaches and potential employee involvement.
Eskom has struggled to assess the full impact of the fraud, as the number of fraudulent tokens in circulation and their corresponding value remains unknown. Marokane acknowledged the urgent need to overhaul Eskom’s online vending system, which he described as being vulnerable due to outdated software and inadequate cybersecurity measures.
In response, Eskom is implementing several reforms, including consolidating forensic, security, and investigative functions into a single entity reporting directly to the CEO. The company is also establishing a dedicated project management office to manage findings from external investigations and data analytics while reinforcing internal controls to ensure routine procedures are followed.
Marokane emphasized that many of the issues stem from a lack of consistent accountability within the organization, highlighting the need for a culture of discipline to prevent further fraud and revenue loss. The ongoing investigation and planned reforms are critical to restoring trust in Eskom and securing its infrastructure against future threats.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/eskom-launches-investigation-into-multi-billion-rand-prepaid-meter-fraud-scheme/
