South African authorities say they have conducted raids across five provinces to break up a coal-smuggling syndicate blamed for stealing more than $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 Thursday to break up a coal-smuggling syndicate they blamed for stealing more than $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 product, the country’s tax and revenue agency said in a statement.
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 tax agency said. The switching of coal destined for state-owned plants has worsened the country's electricity crisis, the agency said.
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