The African National Congress Youth League (ANCYL) wants acting Eskom CEO Matshela Koko suspended, following allegations that his step-daughter benefited from contracts worth R1-billion from the power utility.

"This is what you call radical economic theft," ANCYL president Collen Maine told News24 on Tuesday.

He said it made no sense for Koko to claim he had no clue what his own step-daughter, Koketso Choma, did for a living.

"It's like saying you don't know what your son or daughter is doing at university. No parent would say that," said Maine.

The Sunday Times reported at the weekend that Impulse International, a company Choma had been appointed as a non-executive director, was awarded tenders worth R1-billion from Eskom.

During his tenure as Eskom's group executive head of generation, Koko had oversight and influence over the supply chain management process.

Lynne Brown report

Koko denied having any knowledge of Choma's position as a non-executive director at Impulse International. Eskom claimed Koko only became aware in August 2016, and asked her to resign.

Choma lives with Koko and graduated three years ago.

The ANCYL had rejected Public Enterprises Minister Lynne Brown's decision to allow Eskom's board to handle the matter. She instructed the board to report back to her ministry within 90 days.

Maine said it was a serious allegation of corruption and Koko needed to step aside to while the matter was investigated.

The ANCYL would demonstrate against Eskom if it did not find a permanent replacement for Brian Molefe, who stepped down on January 1 this year, after former Public Protector Thuli Madonsela mentioned in her State of Capture report that he had contact with the Gupta family.

"When we want radical economic transformation, it's for the benefit of the people, not for some to enrich their families," Maine said.

He said the league was worried that the claims against Koko made the ANC look bad.

"Our biggest fear is that people will say it's the ANC, so it's high time we exonerate the ANC from these bad doings so that people must see the ANC is very serious about fighting corruption," he said.