Eskom offered R800 million contingency fee from China’s Dongfang company - BD

A report by the Business Day newspaper on Monday states that Eskom offered to pay China’s Dongfang company an R800 million contingency fee on top of an amount of R4 billion it had quoted for a boiler at the Duvha power station in Mpumalanga.

On Friday the High Court in Johannesburg interdicted the contract after bidders Murray and Roberts and General Electric accused the parastatal of rigging the tender to favor of Dongfang.

Business Day journalist, Stephan Hofstatter has more on the story.

The reason for that particular contractor winning the bid was because it had a fixed cost even though its cost was R1 billion more than the rival bid, the question is why should you add a contingency fee onto a fixed cost?

Stephan Hofstatter, Business Day journalist

A question apparently asked by some of the executives, says Hoffstatter.

It just looks as though the numbers were constantly being massaged and manipulated to ensure that that particular contractor won the tender, being Dongfang.

Stephan Hofstatter, Business Day journalist

It will then go to court for the actual merits of the case to be heard. Eskom has not commented in any detail other than what they said in their court papers, and in essence, it's to say they at a higher risk...

Stephan Hofstatter, Business Day journalist

Click on the link below to listen to the full audio...


Recommended

by THE NEWSROOM

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

Deputy Editor of the Financial Mail, Sikonathi Mantshantsha says the Gupta-owned mine only had to pay 10% of the initial fine.

Meet the woman striking the gender balance in the energy sector

Meet the woman striking the gender balance in the energy sector

Noxolo Kahlana believes there are many opportunities for women in the energy sector and encourages women to jump on the bandwagon.

Eskom gets new (acting) CEO

Eskom gets new (acting) CEO

Eskom veteran Johnny Dladla is the parastatal's new acting CEO. Bruce Whitfield interviews energy expert Chris Yelland.

Eskom appoints Johnny Dladla as acting CEO

Eskom appoints Johnny Dladla as acting CEO

Eskom board believe that Dladla’s experience and expertise will stabilise the parastatal the short-term.

Zuma's son and Gupta brothers could be summoned before Parly's Eskom inquiry

Zuma's son and Gupta brothers could be summoned before Parly's Eskom inquiry

Parliament’s Public Enterprises Committee discussed the scope of the inquiry which is expected to kick off in early August.

How one city may change the way all cities are built

How one city may change the way all cities are built

Masdar City is a future vision for urban development in a country awash with oil that does not use a drop of it.

Popular articles
Minister Zwane confirms trips to Dubai and Switzerland

Minister Zwane confirms trips to Dubai and Switzerland

EWN parliamentary correspondent Gaye Davis says Mineral Resources Minister Mosebenzi Zwane received detailed and tough questions.

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

The ANC treasurer-general confirmed Mantashe’s comments that the President did not consult the ANC leadership on the reshuffle.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

[CARTOON] Poephol With a Taste For Strife

[CARTOON] Poephol With a Taste For Strife

EWN's Dr Jack & Curtis take a look at the Spur confrontation that has taken the country by a storm.

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

5 advantages of leasing instead of owning a car (lower monthly payments!)

5 advantages of leasing instead of owning a car (lower monthly payments!)

Want (or need) a new car? Dale Scorer (a wealth manager at AlphaWealth) reckons you should consider leasing.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...