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South African authorities said they conducted raids across five provinces to break up a coal-smuggling syndicate. The mafia was involved in stealing more than US$26 million in coal, degrading state-owned power plants, and contributing to an electricity crisis
South African authorities said they conducted raids across five provinces to break up a coal-smuggling syndicate. The mafia was involved in stealing more than US$26 million in coal, degrading state-owned power plants, and contributing to an electricity crisis.
The criminal gang diverted trucks carrying high-grade coal to power stations, stealing the coal to sell, and replacing it with sub-standard products, the country’s tax and revenue agency said in a statement. The substandard coal has caused crippling damage to the country’s power plants, authorities said.
This problem was raised by the earlier chief executive of ESKOM when he put his papers. ESKOM has been incurring continuous losses for quite some time, which crippled the South African economy. He alleged that some of the high-ranking officials of the ruling party -ANC-was involved in siphoning off the resources from the beleaguered power plant.
The South African Revenue Service worked with other law enforcement agencies to carry out search and seizure operations in the Gauteng, Mpumalanga, KwaZulu-Natal, Free State, and Limpopo provinces. No arrests have been made yet, national police spokesperson Brig. Athlenda Mathe said.
Africa’s most advanced economy is in the midst of a power crisis that has resulted in scheduled rolling blackouts because its coal-fired stations are not generating enough electricity for the country’s 62 million people. The state-owned power utility, Eskom, produces about 95% of South Africa’s electricity.
The blackouts have been largely blamed on years of corruption and mismanagement at Eskom, though authorities also have said that suspected organized crime syndicates have been operating for years around Eskom’s power station supply chains. Suspects involved in the syndicate include former Eskom employees. The switching of coal destined for state-owned plants has worsened the country’s electricity crisis.
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South Africa experienced its worst blackouts ever at the start of the year when homes and businesses went without electricity for more than eight hours a day. The electricity is usually cut off in two-hour blocks spread out over the day. The cuts have eased in recent weeks but energy analysts have said the blackouts will last until at least the end of 2024.The electricity crisis has badly impacted South Africa’s economy, which is only expected to grow by less than 1% this
