Eskom wants R207m back

Eskom yesterday filed court papers in a bid to recover R207 million in connection with contracts it alleged were improperly awarded to Deloitte Consulting in 2016.

Deloitte was not immediately available for comment.

Eskom, drowning in debt of over R450 billion and reliant on government bailouts to keep the lights on, is at the centre of a judicial inquiry into corruption at state entities, in addition to several other probes into mismanagement at the company.

Yesterday, the power firm’s chief executive and chairperson Jabu Mabuza said in a statement it was going after Deloitte for R207 million linked to contracts it was awarded by previous Eskom executives in 2016.

“Information before us shows that Deloitte engaged in activities that were unfair, inequitable, nontransparent and uncompetitive, using off-the-record briefings with Eskom officials to submit proposals, and were granted contracts even though their pricing was way above their competitors,” said Mabuza.

Mabuza said Eskom was asking the court to declare the activities relating to a batch of tenders “unlawful and unconstitutional, to set aside the awards, and for Deloitte to pay back the amounts paid to them”.

The investigations and inquiries were triggered by the 2016 leaking of documents detailing relations between the Gupta family, former president Jacob Zuma, and deals struck with state firms like Eskom, as well a number of big companies including multinationals like McKinsey & Company and Germany’s SAP.

The Gupta family and Zuma have denied the allegations. Earlier this month, the US sanctioned the three Gupta brothers over the corruption allegations.

The probes have led to resignations and the firing of numerous executives in state firms, a presidential inquiry into graft, and the axing of Zuma.

At Eskom the chief executive and chief financial officers have been ousted. – Reuters