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State-owned utility Eskom paid R721 million in July 2025 for 40 million litres of diesel recorded as received at Cape Town’s Burgan Terminal, but independent investigations by amaBhungane revealed that up to 38.8 million litres of the fuel remained physically missing, triggering a fraud probe referred to the Hawks.
Here is the math. When South Africa faced load shedding in early 2025, Eskom scrambled to secure fuel for its Ankerlig Open Cycle Gas Turbine plant. Internal accounting systems marked massive shipments as delivered, yet terminal inspections and commodity supplier disclosures tell a vastly different story about billions spent on prepayments.
The Bottom Line
- The Discrepancy: Eskom recorded 40 million litres of diesel from supplier Lanele Resources as received in July 2025, paying R721 million, but Swiss commodities giant Vitol confirmed only 5 million litres were physically present in Burgan Terminal tanks.
- The Scale: Between February and April 2025, Eskom authorised at least 15 prepayments totalling R2.97 billion under emergency supply agreements tied to a potential R21 billion diesel contract framework signed in December 2024.
- The Regulatory Fallout: Following interim findings by forensic firm Itsamaya Holdings and Eskom‘s internal security team, the utility referred the matter to the Directorate for Priority Crime Investigation (the Hawks) over suspicions of fraud and corruption.
Tracing the R721 Million Paper Trail at Burgan Terminal
The core of the controversy centers on two major transactions executed in July 2025. According to internal records uncovered by amaBhungane and reported via News24, Eskom logged two separate 20-million-litre orders from Lanele Resources as safely delivered to the Burgan Terminal in Cape Town harbour. Prompted by these book entries, Eskom disbursed two separate payments of approximately R360 million each.
But the balance sheet tells a different story when compared against physical logistics. Investigators from forensic firm Itsamaya Holdings and Eskom‘s own Group Investigations and Security Department visited the terminal gates only to face locked security access. When queried, Vitol—the Swiss commodities giant holding a stake in Burgan Terminal via its local subsidiary Vesquin Trading—confirmed the hard numbers. Vesquin director Harvey Foster admitted that only 5 million litres were actually kept in-tank for Eskom, leaving nearly 39 million litres outstanding as an institutional IOU.
“Vesquin … will deliver the outstanding balance of diesel when it is required,” Harvey Foster stated to investigative reporters, noting that just 5 million litres remained earmarked in-tank.
Emergency Prepayments and the Ankerlig Turbine Crunch
This missing-fuel episode was far from an isolated administrative glitch. The underlying crisis stretches back to December 2024, when Eskom signed sweeping diesel contracts potentially worth up to R21 billion to feed the Ankerlig Open Cycle Gas Turbine plant. When rolling blackouts intensified in January 2025, newly onboarded suppliers failed to maintain physical fuel flows.
Faced with mounting grid pressures, Eskom authorized a frantic wave of emergency measures. Records show the utility issued a separate R200 million emergency contract to Astron Energy, followed by at least 15 prepayments totalling R2.97 billion between February and April 2025. Rather than securing immediate grid stability, these capital outlays bypassed standard procurement guardrails without adequate financial guarantees.
| Metric / Event | Reported Value | Operational Status |
|---|---|---|
| Lanele Resources July 2025 Invoice | R721 million (Two payments of ~R360m) | Logged as “received” in Eskom books; only 5M litres physically present. |
| Outstanding Fuel Balance | 38.8 million litres | Held as an outstanding delivery commitment by Vesquin Trading. |
| Early 2025 Emergency Prepayments | R2.97 billion | Disbursed across 15 transactions between February and April 2025. |
| Overall Contract Framework | Potentially R21 billion | Signed in December 2024 for Ankerlig Open Cycle Gas Turbine supply. |
Institutional Pushback and Ongoing Investigations
Public scrutiny forced Eskom to defend its accounting practices. On 31 July 2026, the utility released a statement asserting that an independent physical verification report confirmed “there were no discrepancies between the diesel delivered or available to Eskom and the amounts paid” as of 30 June 2026. However, investigative findings directly challenge that narrative, pointing out that tens of millions of litres remained undelivered well past statutory reporting dates.
The internal fallout has already claimed administrative collateral. Following an interim forensic report delivered in May 2025, Eskom instituted disciplinary actions against several employees for failing to follow proper contract-management protocols. Concurrently, Electricity and Energy Minister Kgosientsho Ramokgopa awaited a comprehensive final report. While initially slated for delivery at the end of July, Eskom delayed submission by another month, citing the sheer volume and complexity of the financial data analysis.
As markets monitor the broader macroeconomic implications for South Africa’s energy supply chains, the core question remains whether state-backed utilities can enforce stringent governance over emergency procurement channels without exposing public funds to phantom deliveries.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
