Daily News

Eskom quantifyin­g R841m loss at Kusile

- MAYIBONGWE MAQHINA

ESKOM is quantifyin­g losses incurred in the R841 million accommodat­ion building for workers at the Kusile power station.

This was revealed by Public Enterprise­s Minister Pravin Gordhan in his written response to parliament­ary questions by DA MP Benedicta van Minnen.

The incomplete project, known as Wilge Residentia­l Developmen­t Project, was initially costed at R260m but it ballooned to more than R800m when it was halted in 2019.

“Eskom is in the process of quantifyin­g the losses incurred and the parties against whom legal actions should be taken. Counsel has been engaged to advise on the merits of intended action,” Gordhan said.

In separate responses to DA MP Michele Clarke, Gordhan said an open tender process was followed for the project and 24 companies submitted tenders.

He maintained that Liviero Wilge Joint Venture was contracted to build the 336 units by December 2013.

“The duration of the contract was 18 months and the accepted contract price was R226 485 875.455 excluding value-added tax and cost price adjustment,” he said.

Gordhan said that although the initial contract was R226.5m, the final monetary value at adjudicati­on was R600.48m.

“The cost incurred to date is R632.64m on the developmen­t of the flats paid to Liviero Wilge Joint

Venture (LWJV) and an additional R209.23m on common infrastruc­ture and related work paid to other service providers,” he said.

Gordhan said a total amount of R841.87m has been paid to service providers.

His replies show that R40.6m was spent on accommodat­ion during the constructi­on of the flats.

Gordhan also revealed that Eskom instituted disciplina­ry action in 2019 against the general manager for group capital division facilities, Reuben Mamorare, for the wasteful expenditur­e.

“The disciplina­ry process was concluded in January 2020 and the general manager was found guilty and subsequent­ly Eskom terminated his employment,” he said

 ??  ?? POWER utility Eskom is in the process of quantifyin­g losses incurred in the R841 million accommodat­ion building for workers at the Kusile power station. This was revealed by Public Enterprise­s Minister Pravin Gordhan yesterday. | GCIS
POWER utility Eskom is in the process of quantifyin­g losses incurred in the R841 million accommodat­ion building for workers at the Kusile power station. This was revealed by Public Enterprise­s Minister Pravin Gordhan yesterday. | GCIS

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