Eskom terminates ‘inflated’ oil supply contract

Eskom to terminate ‘inflated’ oil supply contract

Eskom says it plans to cancel a fuel oil supply contract with Econ Oil & Energy Ltd, after a probe found the company’s fees had been inflated.

Eskom load shedding - AFP

The power utility's spokesperson Sikonathi Mantshantsha says the 5-year contract was rewarded in 2019.


Mantshantsha says a review around the processes leading up to the tender being awarded revealed serious irregularities.


"Including inflated prices charged to Eskom when lower-priced alternatives were evident.


"Eskom has written to the supplier notifying them of its intention to have the contract terminated through the legal process.”

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He adds that the embattled state-owned utility is currently reviewing all tender processes.


"Eskom is currently reviewing the roles played by all stakeholders in awarding the tender, including the role of its own employees. 


"Where applicable, disciplinary processes will be pursued and criminal charges laid.


"As Eskom has previously stated, a process to review all major contracts commenced earlier this year, and where evidence of corruption or other irregularity has been discovered.”

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