Econ Oil rubbishes ’false media reports’ over Eskom deal

Managing director at Econ Oil and Energy Nothemba Mlonzi.

Managing director at Econ Oil and Energy Nothemba Mlonzi.

Published Jun 8, 2021

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DURBAN - GIANT female-owned oil suppler Econ Oil says it will not be distracted by media campaigns facilitated by Eskom and carried out through “exaggerated and sensationalised media reports”.

In the latest statement issued by Econ Oil, managing director Nothemba Mlonzi says her company has been doing business with Eskom since 2003. And she had not encountered any issues regarding their services rendered until a few “jealous” people apparently started fabricating lies to destroy the company.

“The avalanche of false allegations, media assault, disinformation campaign against Econ Oil is an attempt to justify the cancellation of the contract, which we won on merit.”

Econ Oil called out those “spreading misinformation” about the company, stating that many reports about Mlonzi admitting to acting unethically were factually incorrect.

The oil company rejected reports alleging Mlonzi had confirmed the erroneous findings of law firm Bowmans as accurate. Bowmans’ findings included that she had tried to influence Eskom officials to act in a manner beneficial to her company.

"Again, Ms Mlonzi has never submitted an affidavit admitting to any of Eskom’s claims, which Econ Oil is challenging in court. She has denied corruption or impropriety," read Econ’s statement.

The company explained that part of the dispute with Eskom emanates from the Bowmans report, whose content is being challenged in court in a trial set to start on Wednesday to Friday.

“Since 2003, we have been delivering to Eskom, and we conducted our business ethically at all times. That is why the only thing the Bowmans report attempted to ’scandalize’ is a 2014 political donation that was honest and above-board, plus unproven claims of overcharging.

“Econ Oil enjoyed a great working relationship with Eskom until the award of the 2019 five-year contract. Econ Oil was awarded 11 power stations, Sasol awarded three power stations, and FFS awarded one power station,” read the statement.

The company alleged that leaked emails between procurement officials at Eskom revealed competitors complained to Eskom, and pressurised it to change the allocated volumes, but when Econ Oil refused to renegotiate the volumes, a “new plan anchored in a smear campaign was launched against Econ, including the refusal to allow for the implementation of the contract”.

The oil supplier said it did not wish to litigate via the media, however, “we find it necessary to correct any false statements and media propaganda that seeks to cause harm to the name and image of our company, and its directors”.

Eskom spokesperson Sikonathi Mantshantsha declined to comment stating the matter was before the courts and the entity believed the court would handle it better.

Daily News

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