Eskom's acting group chief executive Jabu Mabuza. File photo by African News Agency/ANA
Eskom's acting group chief executive Jabu Mabuza. File photo by African News Agency/ANA

'Pure corruption': Eskom seeks to recover R207m from Deloitte

By ANA Reporter Time of article published Oct 21, 2019

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DURBAN – Eskom is seeking the setting aside of awards for two contracts and the recovery of R207 716 243.80 for improperly-awarded work, during 2016, from auditing firm Deloitte Consulting. 

The embattled state power supplier also wants its former chief financial officer Anoj Singh, and senior executive Prish Govender, to pay the costs of its application.

“We have promised South Africans that we will be pursuing all ill-gotten funds that were extracted from Eskom during the days of state capture," said Eskom acting group chief executive, Jabu Mabuza. 

He said the legal action sought to restore confidence in Eskom's governance processes and procedures, "which were grossly subverted by people who were charged with taking care of the very processes". 

"Information before us shows that Deloitte engaged in activities that were unfair, inequitable, non-transparent and uncompetitive using off-the-record briefings with Eskom officials to submit proposals, and were granted contracts even though their pricing was way above their competitors. [They were] getting the scope of these contracts modified to just under the ceiling price, which requires the approval of the provincial Treasury as stated in Eskom’s cost-containment procedures. 

“We are therefore asking the court to declare the activities relating to the CFO Transition Laboratory and tenders SM002 and SM004 unlawful and unconstitutional, to set aside the awards, and for Deloitte to pay back the amounts paid to them," said Mabuza. 

He said it was "disheartening" to see how processes had been "subverted". 

Mabuza added that proposals were submitted before the tender process started and the Deloitte tenders were not ranked and scored according to the PPPFA and Eskom procedures, which required the price to account for 90% of the score. 

Deloitte was granted contracts when their prices were five times higher than those of their competitors, he said.  

"In one of the tenders, Deloitte’s price was R79 million versus just under R16 million and R9 million from two competitors, and in the second tender, Deloitte’s price was R88.8 million versus R14.5 million, R13.25 million and R6.59 million from three competitors. This shows pure corruption on the part of Deloitte and the Eskom executives who facilitated these contracts with absolutely no regard for Eskom’s sustainability.”  

Mabuza said the embattled power utility would continue to work with law enforcement authorities and the Zondo commission to recover stolen funds, using criminal and civil processes. 

African News Agency (ANA)

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