Eskom’s triple power costs

Weekend Argus (Sunday Edition) - - METRO - Busi­ness Re­port

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. |

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