Eskom, Econ Oil lock horns

SOUTH African power utility Eskom and the black female-owned Econ Oil and Energy locked horns in the South Gauteng High Court following a bitter war between the two entities involving a multibillion-rand fuel supply contract.

In the matter heard before Judge Bashier Vally, it was decided that the matter involving Eskom’s application to interdict the recent arbitration award which ruled in favour of Econ Oil, would be suspended.

Judge Vally then expedited the hearing of the review of the application to between June 9 and 11.

Eskom had initiated an urgent court application seeking to have its own decision to award the tender reviewed and set aside.

Additionally, Eskom sought to stall the arbitration report by Kevin Trisk, SC, which found that there exists a contract between Eskom and Econ Oil.

The long-standing dispute arose from a tender process which culminated in Eskom’s board resolving to award a tender for the supply of fuel oil to various bidders, including Econ Oil.

The combined value of the award was in excess of R14 billion.

Eskom’s Wim Trengove, SC, claimed that the tender was riddled with many irregularities resulting in the now discredited Bowmans report which made adverse findings against Econ Oil.

The report came with a disclaimer acknowledging that it relied on unverified evidence provided by Eskom bosses to make findings against the oil company. It further highlighted that all claims couldn't be verified.

For Econ Oil, Hilton Epstein, SC, argued before the court that the fuel supplier had a right to seek enforcement of the contract, and that the Eskom interdict should be rejected since it would be attempting to block that right.

He also argued that Eskom failed to show any evidence that they would suffer imminent harm in the remaining three years of the contractual agreement which was still in existence.

After hearing counsel for both parties, Judge Vally instructed that the matter be heard during the period June 9 to 11, in which Part B of the review application to set aside the contract would be heard.