SIU probes companies overpaid by R4bn at Eskom’s Kusile project

The power utility said some of its staff members had resigned with immediate effect when the investigations started or in the face of disciplinary action.

Picture: Moneyweb

While addressing Parliament’s Standing Committee on Appropriations (Scopa) on its financial issues, Eskom revealed the Specialised Investigating Unit (SIU) were probing companies who are alleged to have received overpayments of R4 billion at the utility’s Kusile power station project.

During the virtual meeting, Eskom said the contracts implicated by the R4-billion overpayment include Asea Brown Boveri (ABB) South Africa (R1 billion), Tenova Mining and Minerals (R735 million), Tubular Construction (R1 billion), and Stefanutti Stocks (R1 billion).

Other various site service contracts, which total to R180 million, were not in the scope of the SIU.

It was reported that both Stenuffi Stocks companies (Basil Read and Izazi) were either compensated without final measurements being done or paid claims in monthly payments between 2015 and 2018, which were not substantiated at the time.

Meanwhile, ABB has offered to pay back about R240 million.

Source: Eskom

Eskom said it was also investigating multiple staff members, including project and contract managers.

The power utility added some of the staff members had resigned with immediate effect when the investigations started or in the face of disciplinary action.

“The SIU has referred evidence to supporting the institutions of criminal charges against those involved to the National Prosecuting Authority (NPA), while it is also considering civil action against those involved to recover losses incurred by Eskom.

“Eskom also initiated the re-evaluation of the previously approved extension of time with forensic planning experts to ascertain actual entitlement. The findings in this regard will inform the SIU’s civil claim proceedings,” the power utility said.

On load shedding, Eskom said it was likely that it would continue to hit South Africa until December.

The power utility added load shedding might also come back between February and March 2021 and then between June and July 2021.