Eskom using ‘stratagem tactics’, claims Econ Oil

Econ Oil accuses Eskom of embarking on a media campaign which runs parallel to the pending litigation between the parties.

Econ Oil accuses Eskom of embarking on a media campaign which runs parallel to the pending litigation between the parties.

Published May 31, 2021

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DURBAN - IN THE latest dispute with Econ Oil, Eskom and former Eskom boss Solly Tshitangano, Econ Oil has rubbished Eskom and its disciplinary report, accusing the entity of employing “stratagem” tactics in an attempt to implicate Econ Oil.

The company’s managing director, Nothemba Mlonzi, issued a statement on Sunday decrying the manner in which Eskom has allegedly embarked on a media campaign which she felt ran parallel to the pending litigation between the parties.

Mlonzi said her company would not become involved in a media brawl but instead focus on winning the pending litigation.

Eskom issued a statement on Friday announcing its decision to fire Tshitangano after advocate Nazeer Cassim SC, the chairperson of a disciplinary hearing between Eskom and Tshitangano, recommended Eskom do so for Tshitangano’s alleged misconduct in failing to carry out his duties, contravening the Public Finance Management Act and contravening Eskom’s disciplinary code in that he allegedly divulged confidential information to external parties.

Cassim said in the report that those who supported Eskom in continuing to do business with Econ Oil were “either naive to the extent that their capacity to hold office as director or senior employee be revisited or had an ulterior purpose”.

Mlonzi took exception to the report, arguing that it was flawed as it relied on findings by law firm Bowmans.

“Econ was not requested at any time to make any submissions to the chair of the disciplinary process. Econ was not a party to those proceedings, made no submissions, led no evidence, and was not even represented at the proceedings.

“It is highly regrettable that the disciplinary committee dealt superficially (without Econ’s input and version) with Mr Tshitangano’s alleged advancing of Econ’s business. Econ was not awarded any opportunity to state its case. This is unfortunately the now established stratagem followed by Eskom. It runs a parallel strategy in the media and the courts, to avoid its legal obligations towards Econ,” read Mlonzi’s statement.

Highlighting the issue between the entity and her company, she said that central to the dispute were the Bowmans reports, which had previously claimed that there existed an unethical relationship between Econ Oil and Tshitangano. At the time, Bowmans indicated it had relied on information presented to it by Eskom officials.

“The disciplinary committee heavily relied upon these reports, which are qualified with lengthy disclaimers as to the findings contained therein. One of the most pertinent disclaimers is that it has not granted Econ the opportunity to make any representations prior to releasing these reports to Eskom.

“None of the so-called evidence relating to an improper relationship and overcharging so gathered and interpreted has been put to Econ so that it could answer to these false allegations.

“The unproven and untested allegations against Econ, now being flaunted in the media as the truth, have not been proven and are in fact untrue. Econ has in detail rebutted these allegations in pending litigation which is to be adjudicated within the next month. It has exposed the Bowmans reports as unreliable, misleading, and based on fallacious assumptions,” read the statement.

Mlonzi added that the media and Eskom had failed to report the finding by an adjudicator that Eskom was contractually obliged not to proceed to place fuel oil orders with Econ and enforce the valid agreement between the two parties, including that the adjudicator made an award for damages in Econ’s favour.

“It is evident from Eskom’s parallel media campaign that it attempts to cast Mr (André) de Ruyter as the saviour of an SOE and to blame Econ for its misgivings. This may be popular in the public domain but far removed from the truth, fact and law. Econ Oil denies any wrongdoing regarding any of the claims made by either Eskom or Bowmans,” said Mlonzi.

Meanwhile, Tshitangano has rubbished Cassim’s report and claimed Cassim was eager to implicate him at all cost. He argued that the two Eskom employees who were interviewed did not implicate him as alleged in the Cassim report.

“He ignored the witness’s evidence and pinned me because that is what they wanted. Cassim formed his own opinions to deal with me instead of relying on facts. I will challenge that in a court of law.”

Eskom spokesperson Sikonathi Mantshantsha has declined to comment.

Responding to Econ Oil and Tshitangano’s comments, Cassim said: “I have written that report based on facts and I stand by everything I have said. If anybody is not happy with it, they’re welcome to challenge it.“

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