Jabu Mabuza’s relative in final bidding process for big contracts at Eskom – report

A company of former Eskom board chair Jabu Mabuza’s distant relative reportedly made it to the final bidding process for an R11-billion boiler tube maintenance contract at the power utility.

The Mail & Guardian reports that Mabuza’s relationship with his relative and the likelihood of a conflict of interest was questioned at the power utility ahead of Mabuza’s resignation last week.

It was reported that neither Mabuza nor his distant relative declared a possibility of a conflict of interest.

The publication reported that Mabuza’s relative is Nomvula Mabuza whose company, named IDS Industry Service and Plant Construction Africa (IDS Africa), was reportedly set up soon after the power utility board was appointed in April 2018.

IDS Africa could reportedly gain 70% from the contract if it wins it. It was reported that IDS Africa is bidding for the contract jointly with American outfit General Electric (GE).

It was reported that IDS Africa already has a R100-million contract for boiler tube maintenance at Medupi power station and that the company was awarded this contract in February last year.

The publication reports that a bulk of Eskom’s R50 billion budgeted for maintenance in the next four years will go towards the maintenance of boiler tubes.

The power utility and Mabuza have reportedly said that Nomvula’s relation to the former chair is distant and that Jabu was never part of discussions and decision-making processes in relation to the pending contract and the one at Medupi.

Despite IDS Africa having being formed in April 2018, it was reported that Nomvula Mabuza claims in the company profile that it has 47 years of experience in plant engineering.

The publication reported that it has found that a whistle-blower has written to the commission of inquiry into state capture and to the Minister of Public Enterprises Pravin Gordhan giving evidence against IDS Africa.

The allegations contained in the letter reportedly include widespread fraud and corruption in the awarding of tenders at Medupi and Kusile.

It was reported that the whistle-blower suggests that the commission should probe IDS Africa.

Another allegation is that when the tender at Medupi was awarded, IDS Africa did not have any employees and it did not have the required experience, adding that the company could be a front.

The publication reported that according to an insider, Eskom’s tender committee has stalled the boiler tube maintenance contract and has decided to restart the process of appointing a new contractor.

However, it was reported that according to another insider, the board of the power utility is yet to confirm the committee’s resolution.

Jabu Mabuza’s chief of staff told the publication that the former Eskom board chair had no knowledge of IDS Africa and what the company’s relationship with the power utility is.

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