Eskom’s triple power costs

ESKOM is taking action against contractors and original equipment manufacturers (OEMS) for financial collusion and substandard work in the construction of the Medupi and Kusile power stations, which have contributed to tripling the costs of the utility, says Public Enterprises Minister Pravin Gordhan.

“We are finding through a forensic process we are undertaking that OEMS fell short in the design and quality of work. There is some hard talking to be done because somebody is making money from the doubling of Medupi costs,” he said.

Gordhan added that main contractors such as Hitachi had to answer for the poor quality of work, with double the costs initially set out. |