Report indicates Eskom forked out more than R38b for inflated contracts

Report indicates Eskom forked out more than R38b for inflated contracts

- A news report has found that Eskom spent billions on contracts that ballooned massively

- The contracts started off at about R4 billion and quickly inflated to over R38 billion

- These major contracts were won from Eskom’s Kusile Power Station

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Eskom is struggling to impress South Africa with its performance and now it has come to light that the utility company has spent billions on inflated contracts.

BusinessTech reported that contracts held by local and international companies for Eskom’s Kusile Power Station are involved in this ballooning of fees.

As could be gathered from a report by Rapport, the contracts were worth R4.92 billion but that climbed to more than R38 billion.

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Briefly.co.za gathered that an American firm won a contract for R114 million in 2005 but this has since ballooned to roughly R14.95 billion.

Several construction contracts inflated as well, going from R1.3 billion to R3.7 billion. A Swiss contract went from R2 billion to just over R3 billion.

It is looking as if people saw opportunities to milk Eskom dry and went for it.

Construction contracts have inflated from R1.3 billion to R3.7 billion, and a Swiss electrical contract ballooned from R2.2 billion to R3.1 billion.

The parliamentary standing committee on public accounts is apparently shocked by these numbers.

Now, an investigation into contracts has been ordered, especially after matters are behind schedule and deadlines have been missed.

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Source: Briefly.co.za

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