The reputable company is concerned with the continued propaganda smear campaign against it by the mainstream media. Picture: Econ Oil
The reputable company is concerned with the continued propaganda smear campaign against it by the mainstream media. Picture: Econ Oil

Econ Oil rejects false and deliberate misrepresentation of facts

By Thabo Makwakwa Time of article published May 4, 2021

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DURBAN - Econ oil on Tuesday slammed the claims made against it in an exclusive article published by News24.

In a statement the company said that the story which links it to allegations of corruption at Eskom’s Kusile power station had been published despite the fact that it had never been charged with corruption.

The company said it is concerned with the continued propaganda smear campaign against it by the mainstream media.

This is in reference to the exclusive article titled, ’THE ESKOM FILES | Exclusive: Power utility's R178 000 000 000 dodgy tender tsunami’, published on News24.

Econ Oil head of operations Tinyiko Mabasa, responded in the statement issued on Tuesday.

"News24 attempts to use conflation propaganda to link Econ Oil to the Kusile Power Station allegations of corruption. It did this knowing very well that Econ Oil has never been charged of, or involved in any acts of corruption," read the statement.

It further accused News24 of making a false allegation that the decision to stop the 2019 Bowmans investigation was taken by four officials, with at least one official now linked to allegedly acting in the interest of Econ Oil.

"The relationship we have with all the Eskom officials has been nothing but strictly professional. There is no single official of Eskom who has ever traded in favours for Econ Oil, or even asked to do so," read the statement.

Econ Oil decried concerted efforts to destroy the company despite its public denial about the false claim about Econ Oil receiving R8 billion Eskom deals.

The company said that a request for Eskom records would prove that there are no contracts valued R8 billion awarded to Econ Oil.

"News24 falsely report that consultancy McKinsey in 2014 exposed overpayments of more than R1 billion. There is no 2014 McKinsey report about a more than R1 billion overpayment but a 2016 McKinsey report," the statement read.

It went on to say that the 2016 McKinsey report is nothing but a spreadsheet that falsely claimed that Econ Oil overcharged Eskom by R397 million.

“And we refuted it in our court submission, backed by solid evidence,“ read the statement.

The oil company added that since its formation almost 20 years ago, it has conducted itself with the highest degree of honesty and ethics – and to this day, continues to do so.

Eskom spokesperson Sikonathi Mantshantsha, said that Bowmans was instructed to suspend any work regarding the mandate until Eskom and Bowmans agreed to the new scope and estimate of costs of work to be done.

"Eskom executives at the time informed Bowmans it should finalise only certain outstanding matters – except the probe into Econ Oil. Econ Oil was not one of those matters (to be finalised)," said Mantshantsha.

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