The Gauteng High Court in Johannesburg has convicted businessman Michael Lomas and co-accused Hudson Kgomoeswana on 34 corruption-related charges after both entered into plea and sentence agreements with the National Prosecuting Authority’s (NPA) Investigating Directorate Against Corruption (IDAC) in the long-running R1.4 billion Kusile power station corruption case.
IDAC spokesperson Henry Mamothame said Lomas pleaded guilty to 34 counts of corruption arising from payments made between February 2015 and April 2017.
The payments, amounting to more than R2.6 million, were allegedly channelled from his personal bank account to a company owned by another of the accused.
The charges also relate to 24 rental payments worth more than R396,000 for a Midrand apartment that benefited two former senior Eskom employees.
The NPA said the payments constituted gratification intended to influence the officials in awarding a contract to Tubular Construction Projects, a company for which Lomas worked.
After considering factors including his age, health, remorse and co-operation with authorities, the court sentenced Lomas to 15 years’ imprisonment, wholly suspended for five years on condition that he is not convicted of fraud, theft or corruption-related offences during the suspension period.
As part of the agreement, Lomas is also expected to testify against some of the remaining accused in the main corruption trial.
However, efforts to recover proceeds of the crime remain ongoing.
“The NPA’s Asset Forfeiture Unit (AFU) has rejected the proposed confiscation of R6 million against the value of his assets, as it views the amount as not being reflective of the proportions of the money that was lost to the state through his criminal acts,” Mamothame said.
The prosecuting authority added that negotiations between the AFU and Lomas’ legal team are continuing in an attempt to reach a settlement.
Kgomoeswana, meanwhile, pleaded guilty to one count of corruption, 18 counts of money laundering and 15 counts related to violations of the Tax Administration Act.
The charges stem from payments exceeding R6 million allegedly channelled to a former senior Eskom employee through Babinatlou Business Services, a company owned by Kgomoeswana. Prosecutors said he retained about R757,000 for allowing his accounts to be used to facilitate the corrupt transactions.
The court sentenced Kgomoeswana to 15 years’ imprisonment on the corruption and money laundering counts, with 10 years suspended for five years on condition that he does not commit similar offences. He was also sentenced to five years’ direct imprisonment on the tax-related charges.
The court ordered that the sentences run concurrently, effectively resulting in a five-year prison term.
Kgomoeswana has further agreed to the confiscation of assets valued at more than R2.4 million by the AFU and is expected to assist prosecutors by providing evidence regarding the offences.
The case forms part of a broader prosecution involving several accused linked to the alleged looting of funds earmarked for the upgrading of Eskom’s Kusile power station between 2014 and 2017.
Lomas was extradited from the United Kingdom in September 2024 to stand trial alongside his co-accused after a lengthy legal battle.
Welcoming the convictions, NPA National Director Advocate Andy Mothibi praised the co-operation among multiple state institutions involved in the investigation and prosecution.
“The National Director of Public Prosecutions, Adv Andy Mothibi, commended the collaboration between the NPA’s IDAC, AFU, SARS, DPCI and Eskom which resulted in the conviction of the two accused,” Mamothame said.
Mothibi also urged law enforcement agencies to intensify co-operation in tackling serious corruption.
“He further called on all law enforcement agencies to strengthen their unity in the fight against all forms of criminality,” Mamothame said.
The matter is not yet fully concluded, with co-accused Frans Hlakudi and Abram Masango expected to return to court on Friday, August 7, 2026, for trial proceedings.
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