Gordhan says Eskom is quantifying R841m loss at Kusile

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The incomplete project, known as Wilge Residential Development Project, was initially costed at R260m but it ballooned to more than R800m when it was halted in 2019.

“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.

“The duration of the contract was 18 months and the accepted contract price was R226 485 875.455 excluding value-added tax and cost price adjustment,” he said. Gordhan also revealed that Eskom instituted disciplinary action in 2019 against the general manager for group capital division facilities, Reuben Mamorare, for the wasteful expenditure.

 

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Failure of project evaluation and appraisal 🙄

RSASIU Eskom_SA Stoute_SA OUTASA 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

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?

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