How fraudsters hijacked Gabon’s electricity payment system

By Firmain Eric Mbadinga

Electricity worth millions of dollars, could be more by some estimates, was sold to consumers in Gabon by fraudsters who set up a parallel pre-paid payment system at the state-run power utility firm, investigations by the authorities have revealed.

The extent of the loss at Société d'énergie et d'eau du Gabon (SEEG) is still being assessed, but the suspects managed to generate and sell electricity tickets without a penny going to the firm.

Details of the embezzlement only came to light this month following an internal investigation, officials at the firm said.

Investigations revealed the scheme was an inside job, leading to the arrest several staff members who have since been interrogated by the Direction Générale des Recherches (DGR).

Financial difficulties

SEEG General Manager, Joël Lehman Sandoungout, has admitted to the embezzlement which he said came at a time when the company was already facing financial difficulties.

"Investigations are under way. We have agents (staff) who are being questioned at the DGR,'' Sandoungout confirmed to TRT Afrika.

A lawyer representing the firm said the financial losses were “significant”.

“The beneficiaries of this fraud, who were hiding in the shadows, are beginning to come forward, making the operation increasingly sensitive," Anges Kevin Nzighou, SEEG's legal advisor, told TRT Afrika.

Duration of fraud

It is still unclear how long the operation ran but there are suspicions it could have been active for years. Many in the country are likening it to a popular Gabonese saying: A thousand days for the thief and one day for the owner.

Electricity consumers in the country have to purchase prepaid tokens from the power supplier in order to obtain codes that are loaded to their meters and guarantee power connection.

The electricity supplied to customers depends on the token bought.

The suspects succeeded in selling the electricity tokens without transferring the proceeds to SEEG, according to investigations.

Server fraud

Internal audits raised suspicions of server fraud leading to further investigations by the company. The suspected accomplices are two heads of division and an IT manager.

The suspects have not been charged in court yet and have not commented publicly on the allegations.

The authorities have conducted searches at the premises of the main service provider, Sigma Technologie, where the parallel system is said to have been set up.

Sigma Technologie has not publicly commented on the investigations.

'' On August 09, 2024, SEEG filed two complaints for theft and embezzlement. Ongoing investigations are revealing new elements every day, exposing the scale of this immense fraud,” the power supplier said.

Upgrading systems

SEEG has already announced that it will be upgrading its IT security systems to reinforce monitoring and detect any attempts to manipulate its systems and data.

An independent audit of the company's electricity sales ticket management systems will also be carried out, it said. Meanwhile, along with legal action, the company has initiated a review of contracts with external partners to strengthen operational security.

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