A British businessman and former contractor for South Africa’s struggling power utility Eskom has been extradited from the UK to face corruption and fraud charges. Michael Lomas is accused of receiving kickbacks on contracts worth over 1.5 billion rand ($85 million) between his company, Tubular Construction, and Eskom for work at the Kusile power station. According to national police spokesperson Brigadier Athlenda Mathe, he allegedly manipulated contracts, was previously arrested, granted bail, and then fled to the UK. He has not yet commented on the allegations.
Eskom, South Africa’s power utility, has faced numerous corruption allegations and significant challenges stemming from years of mismanagement. These issues have culminated in prolonged blackouts throughout the country, severely impacting the economy and daily life. The utility’s struggles reflect broader systemic failures that have undermined its ability to provide reliable electricity, leading to widespread frustration among citizens and businesses alike.
Michael Lomas, a British businessman and former contractor for Eskom, recently arrived in Johannesburg after being extradited from the UK to face serious charges of corruption and fraud. Lomas was involved with Tubular Construction, which secured lucrative contracts for work at the Kusile power station, valued at over 1.5 billion rand ($85 million). His extradition marks a significant step in South Africa’s efforts to tackle corruption within its energy sector.
Upon arrival at OR Tambo Airport, Lomas was seen in a wheelchair and under heavy police escort. According to Brigadier Athlenda Mathe, a medical doctor accompanied him on the flight due to his deteriorating health. This condition was one of the stipulations of his extradition. Lomas is scheduled to face formal charges at Kempton Park Magistrate’s Court, where the extent of the allegations against him will be outlined.
The National Prosecuting Authority (NPA) had been seeking Lomas’s extradition since 2022, but the process was delayed while he appealed the decision, which was ultimately dismissed. He is not alone in facing these charges; Lomas is accused alongside four other individuals, including two senior Eskom executives and two other businessmen, who were arrested in 2019. These co-conspirators are also charged with serious offenses, including fraud, money laundering, and corruption.
The allegations against Lomas and his associates center on claims of receiving kickbacks and inflating contract costs for the work done at the Kusile power station. Initially intended to alleviate South Africa’s severe electricity shortages, the Kusile project has instead been plagued by delays and faults, exacerbating the country’s energy crisis. The ramifications of this mismanagement have been felt nationwide, contributing to an unstable power supply and economic disruption.
Mathe emphasized that Lomas was a “wanted fugitive” who would be transferred to the Hawks, the police unit dedicated to investigating economic crime, corruption, and organized crime. This investigation has been ongoing since 2017, when a whistleblower raised concerns about one of the tenders. The case underscores the broader efforts within South Africa to address corruption and restore integrity to institutions that are vital for the country’s stability and growth.
