Debt-ridden Eskom has reportedly wasted R338 million on building now-abandoned housing for construction workers at the Kusile power plant.
In 2012, Eskom signed a contract for the building of 336 housing units to accommodate the workers in a residential development project close to the power station in eMalahleni, Mpumalanga.
The Daily Maverick's Sikonathi Mantshantsha says the housing units were meant to be completed prior to the start of construction at the power station.
However, the housing project remains abandoned while Kusile nears completion.
Guess what? The power station is 90% complete, the flats are nowhere near being complete.— Sikonathi Mantshantsha, Associate editor at Scorpio - The Daily Maverick Investigative Unit
The housing project was budgeted for R256 million, but so far Eskom has paid R338million on it and not a single flat has been completed.— Sikonathi Mantshantsha, Associate editor at Scorpio - The Daily Maverick Investigative Unit
The power station itself was supposed to be finished in 2016 and, of course, flats were meant to be completed before the construction at the power station started.— Sikonathi Mantshantsha, Associate editor at Scorpio - The Daily Maverick Investigative Unit
According to the Mail and Guardian, the company that was awarded the contract to build the housing units has been liquidated.
Mantshantsha says the power utility has also squandered R1 billion renting accommodation for the very same construction workers in the past decade.
R1 billion is the amount of money Eskom has paid in guesthouses, hotels and other establishments in the eMalahleni area over the past 10 years of building.— Sikonathi Mantshantsha, Associate editor at Scorpio - The Daily Maverick Investigative Unit
Eskom will receive a bailout of almost R120 billion over the next two years.
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This article first appeared on CapeTalk : Eskom blew over R300m on abandoned housing units, reports Sikonathi Mantshantsha