Friday, 31 July 2020: Eskom has commenced a process to cancel the fuel oil
supply contract awarded to Econ Oil & Energy during 2019. This would have
been a five-year contract. A review of the circumstances leading to the tender
being awarded to the company revealed serious irregularities in the process,
including inflated prices charged to Eskom when lower priced alternatives were
evident.
Eskom
has written to the supplier notifying them of its intention to have the
contract terminated through the legal process.
Eskom
is currently reviewing the roles played by all stakeholders in awarding the
tender, including the role of its own employees. Where applicable, disciplinary
processes will be pursued and criminal charges laid.
As
Eskom has previously stated, a process to review all major contracts commenced
earlier this year, and where evidence of corruption or other irregularity has
been discovered, Eskom will not hesitate to take steps to cancel such
contracts, and to recoup any losses that it might have incurred as a result of
any irregular actions.
ENDS