Eskom ordered to pay Aveng R40m after row over power station railway

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The high court in Johannesburg has ordered Eskom to pay R40m to construction company Aveng for its work on a rail yard and coal offloading facility at Majuba power station in Mpumalanga.

Aveng, which was awarded the contract in 2013, lodged the claim earlier this year after Eskom refused to comply with the instruction of an independent adjudicator that it should hand over the disputed amount.

Eskom disputed liability for the payment, saying making it would contravene an agreement with Aveng that it was conditional on Treasury approval and compliance with the utility's internal corporate governance processes.But acting judge JJ Reyneke disagreed and ordered Eskom to pay Aveng R40,087,353.06, plus interest and the construction company's legal costs.

 

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