4 Beneficiaries linked to Eskom R4 billion overpayment revealed

4 Beneficiaries linked to Eskom R4 billion overpayment revealed

- Power utility Eskom has finally revealed the beneficiaries of the controversial R4 billion overpayment

- The over-payment was made in connection with work done on the Kusile Power Station in Mpumalanga, said Eskom

- A report submitted to parliament states that four companies received around R1 billion each

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Power utility Eskom has finally disclosed four of the contracts in which a controversial overpayment totaling R4 billion was made

Eskom said that all contracts were related to work at Kusile Power Station in eMalahleni, Mpumalanga, and that several investigations through law enforcement agencies were ongoing.

Public Enterprises Minister Pravin Gordhan has written to ANC Chief Whip Pemmy Majodina naming contractors responsible for R4 billion overspend on the construction of Eskom’s Kusile power plant.

The R4 billion overpayment was made to Stefanutti Stocks-Basil Read Joint Venture, ABB South Africa and Tubular Construction Projects.

Public Enterprises Minister Pravin Gordhan

Public Enterprises Minister Pravin Gordhan
Source: Depositphotos

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Each was paid R1 billion while a further R735 million went to Tenova Mining and Minerals SA.

The Daily Maverick reported that various site service contracts not within the scope of a Special Investigation Unit (SIU) probe totalled R180 million, Gordhan added.

Gordhan, in his note to Majodina, also sought to clear up a “misunderstanding” that Eskom had overpaid Tegeta R5- billion when in fact Eskom had a R5 billion claim against the company.

Tegeta, which owns the Optimum coal mine, was owned by the Gupta family’s Oakbay

Swiss industrial giant ABB SA, which is linked to an alleged irregular contract awarded by former Eskom executive Matshela Koko, also got an estimated over-payment of R1 billion.

The company, owned by Koko’s stepdaughter, Impulse International, is also listed as a beneficiary, together with another subcontractor, Leago EPC.

The parliamentary report said:

"Numerous employees, including the then project director, employer’s representative and contracts managers are being investigated by the Special Investigating Unit (SIU)."

However, the report added:

"No consequences or actions have been meted out as yet as the investigation by the SIU and the Hawks is incomplete. None of the main role players are currently working for Eskom."

News24 reported that Parliament heard that the SIU was considering the institution of civil action against the relevant role players to recover losses incurred by the power utility.

Meanwhile, Briefly.co.za reported that National Director of Public Prosecutions Shamila Batohi said the amount of work to done in the fight against corruption is astronomical.

Batohi said the lack of adequate staffing in justice departments was a major stumbling block.

She added that although the budget she received was sufficient to fill key positions, it wasn't enough.

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Source: Briefly.co.za

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