Unlawful Eskom Contract Not Set Aside By Johannesburg High Court

Unlawful Eskom Contract Not Set Aside By Johannesburg High Court

  • The Johannesburg High Court has declared that an Eskom tender contract that was awarded to Senta Square was unlawfully issued
  • Siemens brought a case against Eskom and Senta Square after the company's bid for the tender was disqualified
  • Although the contract has been found to be illegal, Senta Square will continue to provide its services at Camden Power Station in Mpumalanga.

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JOHANNESBURG - On Monday, the Johannesburg High Court ruled that a tender contract awarded by Eskom to Senta Square was unlawful. The contract was to handle control and instrumentation repairs at Mpumalanga's Camden Power Station.

According to a report by TimesLIVE, the maintenance at the power station was set to take place for a period of four years, ending in February 2022.

Eskom, Johannesburg High Court, unlawful tender contract, Siemans, Senta Square, Camden Power Station, Mpumalanga
A tender contract awarded to Senta Square by Eskom has been declared unlawful by the Johannesburg High Court. Image: Dean Hutton/Bloomberg
Source: Getty Images

The High Court made the decision not to set aside the unlawful contract but rather suspended it until the court can provide a remedy that is fair and just. Until then, Senta Square will continue providing its services to Eskom as stipulated in the contract.

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Sunday World reports that the case against Eskom and Senta Square was brought forward by a long-time Eskom contractor Siemens. The company sought to find out why it was disqualified by Eskom after having had a working relationship with the power utility for close to 12 years.

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The company was also disqualified despite achieving a high score at the technical evaluation stage. In addition to that, Siemens had previously been awarded four Eskom tender contracts consecutively.

Government creates plans to stop loadshedding and take Eskom back to the top

Briefly News previously reported that the Public Works and Infrastructure Department has reportedly published a plan involving the South African Government's important developments up until the year 2050.

It is called the National Infrastructure Plan. One of the main points of the plan is the country's energy supply. Government proposed a move from fossil fuels and therefore the ongoing loadshedding within 30 years. The DPWI stated that loadshedding has been caused by a number of factors.

A report by BusinessTech revealed that while the majority of the plan of action focuses on changes that will be put in place by 2050, there is a specific section that focuses on direct and immediate changes planned to be implemented within the next three years.

Source: Briefly News

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