British businessman Michael Lomas and businessman Hudson Kgomoeswana have been convicted after entering guilty pleas in the long-running corruption case linked to Eskom’s Kusile Power Station project, marking a significant breakthrough in one of South Africa’s biggest state capture-era prosecutions.
The pair pleaded guilty in the Gauteng High Court in Johannesburg after reaching plea and sentence agreements with the National Prosecuting Authority’s Investigating Directorate Against Corruption (IDAC) in terms of Section 105A of the Criminal Procedure Act.
Both admitted to their roles in a corruption scheme linked to contracts awarded during the construction and upgrade of the Kusile Power Station in Mpumalanga between 2014 and 2017.
Millions in bribes
Lomas was convicted on 34 counts of corruption after admitting to making payments of more than R2.6 million from his personal bank account, as well as paying more than R396,000 in rent for a Midrand apartment used by two former senior Eskom employees.
According to prosecutors, the payments were intended to influence Eskom officials to award contracts to Tubular Construction Projects, where Lomas worked.
Kgomoeswana pleaded guilty to one count of corruption, 18 counts of money laundering and 15 tax-related offences.
The charges relate to more than R6 million that flowed through his company, Babinatlou Business Services, to a former senior Eskom employee as gratification from the Tubular Group of companies. Prosecutors said Kgomoeswana retained about R757,000 for allowing his company’s accounts to be used to facilitate the corrupt payments.
Sentences imposed
Lomas was sentenced to 15 years’ imprisonment, wholly suspended for five years on condition that he is not convicted of fraud, theft or corruption during that period. As part of his plea agreement, he will testify for the State against some of the remaining accused.
Negotiations are continuing between the NPA’s Asset Forfeiture Unit and Lomas’ legal team over the confiscation of his assets, with prosecutors rejecting an initial proposal to forfeit R6 million, arguing it does not adequately reflect the losses suffered by the State.
Kgomoeswana received 15 years’ imprisonment on the corruption and money laundering charges, with 10 years suspended for five years. He was also sentenced to five years’ direct imprisonment on the tax offences, with the sentences running concurrently, leaving him with an effective five-year prison term.
He has also agreed to forfeit assets worth more than R2.4 million and to cooperate with prosecutors by giving evidence in the main trial.
Long-running Kusile scandal
The convictions represent a major milestone in a case that has been under investigation for years.
In 2019, the NPA announced charges against former Eskom executives Abram Masango and Frans Hlakudi, alleging they received more than R30 million in kickbacks linked to Tubular Construction’s R1.2 billion contract at Kusile.
At the time, investigators alleged that Tubular executives, including Lomas and former CEO Tony Trindade, channelled money through Babinatlou Business Services, owned by Kgomoeswana, to benefit senior Eskom officials and secure lucrative contracts.
The Kusile project, one of Eskom’s largest infrastructure developments, has been plagued by corruption allegations, delays and significant cost overruns over the past decade.
Lomas was extradited from the United Kingdom in September 2024 to face the charges in South Africa.
Trial continues
The National Director of Public Prosecutions, Advocate Andy Mothibi, welcomed the convictions and praised the cooperation between IDAC, the Asset Forfeiture Unit, the South African Revenue Service, the Hawks and Eskom.
He said the outcome demonstrated the importance of collaboration between law enforcement agencies in tackling complex corruption cases.
The criminal case against former Eskom executives Abram Masango and Frans Hlakudi is expected to continue in the Gauteng High Court, with proceedings scheduled to resume on Friday, 7 August.
