DURBAN - Econ Oil has pleaded with Eskom to lift its temporary suspension after the power utility’s supplier review committee (SRC) suspended the oil supplier for six months.
In March, Econ received a letter from Eskom indicating it was temporarily suspended. Econ Oil managing director Nothemba Mlozi wrote to the embattled power utility last week, asking the SRC to reconsider its decision to suspend Econ from the Eskom supplier database, on the basis of false allegations that a corrupt relationship exists with an Eskom employee.
“Econ’s suspension ought to be lifted and it should, without any further delay, be reinstated to its rightful position as a supplier of heavy fuel oils and related products to Eskom,” read the letter.
Mlozi believed that the allegations of corruption were a deliberate attack by individuals who wanted to see her company fail. “Econ denies all the charges proffered against it. In an attempt to prevent the SRC from convening a meeting to consider the above charges, Econ sought an interdict to stay the meeting. That application was launched out of the South Gauteng High Court.
“The matter was struck off the roll on February 23, 2021, due to a lack of urgency. Econ, with very limited time to do so, compiled and submitted submissions dated February 24, 2021 to the SRC, in an attempt to persuade the SRC not to suspend Econ from its database, at its meeting on February 25, 2021.”
Eskom spokesperson Sikhonathi Mantshantsha said the suspension would not be confirmed as final deregistration for a six-month period, to give Econ Oil an opportunity to approach the SRC within that period with additional information or submissions it may consider relevant for reconsideration of its suspension by the SRC. “If at the end of this period the suspension has not been lifted through reconsideration, the SRC will confirm the deregistration of Econ Oil from the Eskom supplier database for a 10-year period.”
Econ Oil and Eskom have been at loggerheads since last year when Eskom appointed Andre de Ruyter as chief executive officer. De Ruyter ordered the cancellation of a contract between Eskom and Econ Oil on the basis of allegations of corruption.
Daily News