KUSILE OVERSPEND: Gordhan names firms linked to R4bn Eskom overpayment, while NPA investigates former employees

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An Eskom report attached to Gordhan’s letter indicated that the utility has referred several cases to the NPA and that many of the employees implicated in the inflated contracts had since resigned.

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. Several former employees, Gordhan also revealed, are being probed by the NPA.

The claim comprised R1.13-billion for September 2016 to January 2018 and a further R4.4-billion for February 2018 to December 2018 . The report set out that ABB had been appointed through a closed procurement tender strategy to work on the Hitachi boiler and Alstom turbine combination used by the utility. Other bidders had been Siemens and Maul Bilfinger.

“These variation orders do not have all the requisite particulars to assess or verify the delays or costs claimed and were grossly inflated.” Tenova had been contracted for “the complete design, procurement, delivery to site, erection, cold and hot commissioning of the Terrace Materials Handling Systems for Kusile Power Station Project”.

Tubular had also been awarded a contract in December 2012 for a wastewater treatment plant in December after a de-scoping exercise from the contract originally awarded to Mott MacDonald/PDNA.

 

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