Eskom: R500m security contract was above board

Eskom issued a statement on Sunday, saying everything was above board in the procurement of the contract that cost the power utility just shy of R1.7 million a month.

ESKOM SAID EVERYTHING WAS ABOVE BOARD WITH THE R500M SECURITY CONTRACT

It was awarded to Fidelity Services for three months in 2022.

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The power utility says it was in line with procurement procedures and Treasury directives for emergency procurement.

Fidelity Services was appointed after risks were identified at the utility’s operations and power stations.

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FIDELITY SERVICES WAS APPOINTED AFTER RISKS WERE IDENTIFIED

“Eskom would like to reassure South Africans that the placement of the Fidelity Services security contract was in line with Eskom’s Procurement Procedure and the National Treasury directives for emergency procurement of services.”

Eskom is promising to cooperate with any probe into the contract.

“Eskom is also aware of the publications on various media and internet platforms of unverified messages and claims of corruption and fraud linked to the R500 million contract.

“Given the seriousness of such allegations, Eskom will work with the relevant authorities on any investigation. In addition, Eskom encourages anyone with any credible evidence on concerns relating to this matter to contact the authorities.”

Eskom

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TAPSOSA IS DEMANDING AN INQUIRY INTO THE CLAIMS

This comes after the allegations that Eskom spent R500 million on a 3-month security tender.

The private security association, Tapsosa, is demanding an inquiry into the claims.

According to reports, Tapsosa said former CEO Andre de Ruyter flouted tender processes to get the deal approved.

DE RUYTER SAID ESKOM HAD BEEN THE SUBJECT OF A ‘SUSTAINED CAMPAIGN OF SABOTAGE’

Last month, De Ruyter said in an affidavit that Eskom had been the subject of a “sustained campaign of sabotage” for years.

He stated that not all of the damage to Eskom operations and property is caused by sabotage but that “it is clear that [some] damage to Eskom property and operations has been deliberate.”

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HE PROVIDED TEN INSTANCES WHERE HE BELIEVED SABOTAGE CAUSED SIGNIFICANT COSTS

De Ruyter provided ten instances where he believed sabotage had caused significant costs at Eskom, which included:

• Oil burner trips at Camden — A contractor admitted to removing the bearing oil drain plug from one of the station’s bearings – and confessed that this was an intentional act of sabotage.
• Fire at Majuba — Two valves controlling the water flow to a fire suppression system were shut off before the fire broke out.
• Pylon collapse at Lethabo — An investigation found clear evidence of a cutting instrument being used and no evidence of corrosion.
• Coincidental breakdowns — One unit at Kendal Power Station, and two at Matla Power Station, broke down on the same day — taking down capacity worth two stages of load-shedding. These power stations are just 50km apart.

VAVI SAID WHILE SECURITY IS A MAJOR CONCERN, THAT AMOUNT OF MONEY NEEDS TO BE JUSTIFIED

De Ruyter contended that the sheer number of inexplicable incidents of damage to Eskom’s properties, many of which had evidence of sabotage, “overwhelmingly confirms” that there was a sustained campaign of sabotage.

But Saftu General Secretary Zwelinzima Vavi said while security is a major concern at the utility, spending that amount of money needs to be justified.