Lawyers for Eskom have acknowledged that the power utility can't explain why its board in October 2019 endorsed a decision to award an R8 billion fuel oil tender to Econ Oil which it now says is "patently unlawful".
Eskom this week went to court to have the award declared invalid and set aside. Its application was opposed by Econ Oil, which argued the award was legally binding.
But while Eskom's legal team told the court the award was clearly illegal, they didn't offer an explanation for why its board endorsed it. Advocate Wim Trengove, SC, for the power utility, described the board's conduct as the "elephant in the room".