Eskom has placed its acting head of security Karen Pillay on precautionary suspension.

This is related to a R500-million emergency security contract awarded to Fidelity Services to investigate coal theft last year, News24 understands.

According to senior Eskom sources, pressure came from the board to suspend her. She continues to co-operate with a probe into the contract, according to the sources.

The accusation is that Eskom did not follow proper procurement processes. But Eskom said the contract was awarded in line with its procurement procedure and National Treasury directives for emergency procurement of services.

Eskom said Fidelity was hired after its management received information about a potentially serious security risk to its operations and assets.

While the initial contract price was R500-million, in the end it paid only R250-million.

Pillay joined Eskom in 2004 from the Special Investigating Unit. She started her career in the police.