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A Vereeniging-based metal castings producer, Yellow Star Manufacturing (YSM), allegedly paid R14 million a year in bribes to Emfuleni municipal employees to secure an illegal electricity connection and tamper with meter readings, according to explosive claims by its former CEO, Andries Mar
Sunday Times reports that the illicit arrangement reportedly saved YSM, a supplier to major mining and steel firms, millions of rand monthly, slashing its power bill by half.
The scheme was so audacious that a transformer was allegedly stolen from an Eskom depot in the Free State and installed on YSM’s premises.
Sunday Times reported that this alleged power heist is said to have severely impacted the already struggling Emfuleni Municipality, contributing to its financial collapse. Last year, Eskom attached the municipality’s bank accounts to recover R8 billion in unpaid debt.
Marx, who is facing fraud charges for allegedly stealing over R30 million from YSM, detailed the bribery scheme in a 2023 police statement. He claims YSM’s owner, Hanno van Dyk, brokered the deal with municipal officials. However, Van Dyk denies involvement, accusing Marx of orchestrating the scheme without his knowledge. The two are embroiled in a bitter fallout, with Van Dyk having opened a fraud case against Marx.
In his statement, Marx alleges that YSM paid monthly bribes to municipal electricity department employees starting in 2014, when the company struggled to settle a R2 million debt. He also accuses Van Dyk of money laundering, tax evasion, and using black employees as fronts to boost BEE scores.
The scandal highlights the deepening crisis of corruption and mismanagement in South Africa’s municipalities, with Eskom and taxpayers bearing the brunt of such illicit activities.