DURBAN - EXPERTS have blasted the questionable Bowmans report on Eskom, in which Bowmans, the law firm, made adverse findings against Econ Oil and Energy. The Bowmans report claimed that there appeared to be “a reasonable basis to suspect that Econ Oil’s conduct breached internal Eskom policies”.
The giant energy company Econ Oil was apparently also gearing up to challenge the flawed report.
In a disclaimer by Bowmans, the report admitted that all recommendations made were based on the assumptions that the information provided by Eskom bosses was correct. It also acknowledged the investigation into Econ Oil was limited to an analysis of documentation and information made available by Eskom bosses and third parties.
It also said that it was not undertaken in terms of the South African or international auditing standards. Lastly, Bowmans said that it could not guarantee the veracity of the information it received.
Among fresh allegations emerging from sources within Eskom, Eskom group chief executive officer Andre De Ruyter was accused of having carefully plotted to cancel the Econ Oil contract and illegally appointing Bowmans to compile the now discredited report against Econ Oil.
Former Petro SA board chairperson Tshepo Kgadima denounced the Eskom “smear campaign” to tarnish the image of Econ Oil, arguing that due process of law must be followed.
“Allegations of fraud and or corruption against suppliers to Eskom such as Econ Oil must be litigated and determined by independent open courts under due process of law, not by innuendo and conjecture in the media.”
Kgadima claimed De Ruyter lacked experience and that the Eskom board had seemingly been incapacitated, making it unable to enforce good corporate governance. He also said that the Eskom board should be challenged about the chaos at Eskom.
"It is a lamentable disgrace that the board under the chairmanship of Professor Makgoba is seemingly incapacitated from discharging its fiduciary duty of care and enforce good corporate governance practices. The Eskom board should and must therefore be subjected to delinquency proceedings in the high court for the ensuing chaos and dysfunctionality at Eskom," said Kgadima.
Kgadima raised concerns about about the sudden removal of Econ Oil, calling it an abuse of power and a face-saving exercise by the “inexperienced” De Ruyter. He also said that De Ruyter was allegedly usurping power and authority from Eskom’s executives on operational matters of procurement and moreover on a piecemeal and selective basis.
The apparent purging of black suppliers at key state-owned enterprises such as Eskom was a violation of Section 217 of the Constitution, which relevant portfolio committees in Parliament, said Kgadima, did not tackle.
Replying to the questions from the Daily News, Eskom spokesperson Sikonathi Mantshantsha said that Bowmans was part of the normal Eskom process of procuring services.
"Bowmans (previously Bowman Gilfillan) is part of the panel on the 29 suppliers of legal services that have been approved by Eskom for the current five-year period," said Mantshantsha.
Ted Blom, an energy expert and former senior official at Eskom, criticised the Eskom board. “Eskom needed to follow established procedures for appointing arbitrators which De Ruyter, who has a legal background, should be familiar with, and approach the Law Society or Advocates Society to impartially make appointments of either investigators or any other appointment.”
Blom questioned the board over its support for De Ruyter at the expense of African officials who had come out complaining about De Ruyter's conduct. He accused the board of bias and being managed “as puppets”. He further alleged that some of the board members were receiving three salaries from government.
Eskom’s suspended chief procurement officer Solly Tshitangano was sidelined and suspended by De Ruyter after previously expressing concerns about nepotism, abuse of power and racist treatment, accusing the chief executive of undermining black officials and giving preferential treatment to white executives and white companies.
Daily News