Eish: Eskom Quantifying an R841m Loss at Kusile, Says Pravin Gordhan

Eish: Eskom Quantifying an R841m Loss at Kusile, Says Pravin Gordhan

- Pravin Gordhan recently revealed that Eskom is quantifying an R841 million loss at its Kusile power station

- According to Gordhan, the money was spent on an accommodation building for workers

- The initial cost for the Kusile project was at R260 million but it ballooned to more than R800 million when it was halted in 2019

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Pravin Gordhan recently revealed that Eskom is in the process of quantifying a loss of R841 million at its Kusile power station that came as a result of the project being halted in 2019 following allegations of fraud and money laundering against those involved with the tender process.

Eish: Eskom Quantifying an R841m Loss at Kusile, Says Pravin Gordhan
Pravin Gordhan says that Eskom is quantifying an R841m loss. Images: Waldo Swiegers/Bloomberg
Source: Getty Images
“Eskom is in the process of quantifying the losses incurred and the parties against whom legal actions should be taken. Counsel has been engaged to advise on the merits of intended action,” Gordhan said.

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Concerned South Africans have a lot to say about the Kusile corruption scandal, yet so many appear to be at a loss of words for the amounts of money being thrown around while so many of them are poor. Read a few of their comments on the matter below:

@CaptCapeTown asked:

"In the private sector, this project would have been stopped when the cost started exceeding 10%. Or at least seriously investigated. How in hell can a project go 3x the original budget? Where is the oversight? Where is the governance?"

@Ukuhlola1 asked:

"Eskom why did it take since 2018 to investigate this multi million rand corruption scandal of the Eskom Wilge housing scheme? Why haven't you acted against Liviero Construction of Mike Teke, the SIU must urgently investigate this scandal."

Briefly News previously reported that The Auditor-General of South Africa (AGSA) recently released a report for the 2019/20 financial year. The report revealed that Eskom's wasteful expenditure increased from R538 million to R2.9 billion.

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A portion of that whopping amount was spent on building a block of flats. The flats were meant to be for the technicians who were going to work at Kusile Power Station when it was still being built. However, the station construction was concluded before the flats were built.

The flats have reportedly been abandoned and deemed impaired. AGSA business executive Polani Sokombela told the sitting that the real mystery was how the construction cost amounted to R840 million.

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Source: Briefly.co.za

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