Kusile corruption crackdown: Everything you need to know about the convictions, sentences and asset seizures
Kusile corruption crackdown: convictions and asset seizures has marked a significant milestone in South Africa’s fight against state corruption, with the Gauteng High Court in Johannesburg securing convictions against businessman Michael Lomas and co-accused Hudson Kgomoeswana in the long-running Kusile power station corruption case.
The convictions follow plea and sentence agreements reached with the National Prosecuting Authority’s (NPA) Investigating Directorate Against Corruption (IDAC), bringing fresh momentum to one of the country’s biggest corruption prosecutions linked to Eskom.
The case centres on allegations that millions of rand were paid to influence procurement decisions during the construction and upgrading of Eskom’s Kusile power station, one of the largest infrastructure projects in South Africa.
Kusile power station corruption case reaches major milestone
The Kusile power station corruption investigation has been under way for several years, focusing on allegations of bribery, money laundering and financial misconduct linked to contracts awarded between 2014 and 2017.
According to the NPA, businessman Michael Lomas admitted guilt on 34 counts of corruption relating to payments made between February 2015 and April 2017.
Prosecutors alleged that more than R2.6 million was transferred from Lomas’ personal bank account to a company linked to another accused person.
The charges also include 24 rental payments worth more than R396,000 for a Midrand apartment allegedly used to benefit two former senior Eskom employees.
Investigators argued that these payments were intended as gratification to influence officials responsible for awarding contracts to Tubular Construction Projects, the company associated with Lomas.
Michael Lomas conviction includes suspended prison sentence
Michael Lomas conviction follows plea agreement
The Michael Lomas conviction resulted in a sentence of 15 years’ imprisonment, wholly suspended for five years.
The court considered several mitigating factors, including:
- His age
- His health condition
- His cooperation with investigators
- His guilty plea
- Expressions of remorse
The suspension is conditional on Lomas not committing fraud, theft or corruption-related offences during the five-year period.
Importantly, Lomas has also agreed to become a state witness and provide testimony against several remaining accused individuals during the ongoing trial.
His cooperation is expected to strengthen the broader prosecution involving multiple defendants accused of participating in the alleged looting of funds intended for Eskom’s Kusile power station.
NPA Asset Forfeiture Unit (AFU) seeks greater recovery
NPA Asset Forfeiture Unit (AFU) rejects initial proposal
Although Lomas reached a plea agreement, financial recovery remains unresolved.
The NPA Asset Forfeiture Unit (AFU) rejected a proposed confiscation settlement of R6 million, arguing that the amount failed to reflect the true financial losses suffered by the state.
According to IDAC spokesperson Henry Mamothame, negotiations between the AFU and Lomas’ legal representatives are continuing.
The objective is to recover proceeds believed to have originated from corruption and ensure that crime does not financially benefit offenders.
The AFU has consistently pursued both criminal convictions and civil asset recovery in major state capture matters.
Hudson Kgomoeswana sentencing explained
Hudson Kgomoeswana sentencing includes prison and asset forfeiture
The Hudson Kgomoeswana sentencing followed guilty pleas on:
- One count of corruption
- Eighteen counts of money laundering
- Fifteen counts under the Tax Administration Act
The prosecution alleged that more than R6 million flowed through Babinatlou Business Services, a company owned by Kgomoeswana.
Authorities say approximately R757,000 was retained as payment for allowing company bank accounts to facilitate corrupt transactions benefiting a former Eskom executive.
The court imposed:
- Fifteen years’ imprisonment on corruption and money laundering charges
- Ten years suspended for five years
- Five years’ direct imprisonment on tax offences
Because the sentences run concurrently, Kgomoeswana will effectively serve five years in prison.
He has also agreed to the confiscation of assets worth more than R2.4 million through the NPA Asset Forfeiture Unit (AFU).
Like Lomas, Kgomoeswana is expected to cooperate with prosecutors and provide evidence in the ongoing trial.
Eskom corruption case continues against remaining accused
The Eskom corruption case is far from complete.
Several accused remain before the courts, with additional proceedings expected to continue in the coming months.
Among those scheduled to return to court are:
- Frans Hlakudi
- Abram Masango
Their trial proceedings are expected to continue as prosecutors pursue accountability for the alleged misuse of public funds connected to Eskom’s Kusile project.
Authorities believe the guilty pleas obtained from Lomas and Kgomoeswana could strengthen evidence against the remaining accused.
Extradition of Michael Lomas strengthens prosecution
One of the major developments in the investigation was the successful extradition of Michael Lomas from the United Kingdom.
Following a lengthy legal process, Lomas returned to South Africa in September 2024 to face charges before the Gauteng High Court.
The extradition demonstrated growing international cooperation in tackling corruption and recovering fugitives connected to state capture investigations.
Legal experts believe the extradition paved the way for the plea agreement eventually reached with prosecutors.
State institutions praised for coordinated investigation
NPA National Director Advocate Andy Mothibi welcomed the convictions, praising cooperation among multiple law enforcement agencies.
He commended the joint work undertaken by:
- Investigating Directorate Against Corruption (IDAC)
- NPA Asset Forfeiture Unit (AFU)
- South African Revenue Service (SARS)
- Directorate for Priority Crime Investigation (DPCI/Hawks)
- Eskom investigators
According to Mothibi, coordinated investigations remain essential in tackling sophisticated corruption networks that undermine public institutions.
He also urged continued collaboration between agencies to ensure successful prosecutions and stronger asset recovery efforts.
Why the Kusile corruption crackdown matters
The Kusile corruption crackdown: convictions and asset seizures represents more than individual criminal convictions.
It signals renewed efforts by South Africa’s criminal justice system to hold those implicated in state corruption accountable while recovering stolen public funds.
The case also demonstrates the growing importance of plea agreements in complex corruption investigations, allowing prosecutors to secure convictions while obtaining valuable evidence against additional accused persons.
Asset forfeiture remains a central component of the strategy, ensuring offenders cannot profit from unlawful conduct.
As further trials continue, investigators hope additional convictions and confiscation orders will strengthen public confidence in South Africa’s fight against corruption.
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What happens next?
The prosecution is expected to continue against the remaining accused connected to the alleged R1.4 billion Kusile power station corruption scheme.
Negotiations involving the NPA Asset Forfeiture Unit (AFU) and Michael Lomas are also ongoing as authorities seek greater financial recovery.
Meanwhile, prosecutors will rely on testimony from convicted individuals as they continue pursuing accountability in one of South Africa’s largest Eskom corruption case investigations.
The outcome of future court proceedings will determine whether additional convictions, prison sentences and asset confiscations follow in what remains one of the country’s most significant corruption prosecutions.
References from mainstream media
- IOL News – Kusile corruption crackdown: Everything you need to know about the convictions, sentences and asset seizures
https://iol.co.za/news/crime-and-courts/2026-08-07-kusile-corruption-crackdown-everything-you-need-to-know-about-the-convictions-sentences-and-asset-seizures/ - SAnews – Alleged Eskom fraudster Michael Lomas granted R2 million bail
https://www.sanews.gov.za/south-africa/alleged-eskom-fraudster-michael-lomas-granted-r2-million-bail - Special Investigating Unit (SIU) – SIU welcomes the extradition of businessman Michael Lomas
https://www.siu.org.za/siu-welcomes-the-extradition-of-businessman-michael-lomas/
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