Eskom initiates steps to cancel irregular fuel oil supply contract

31 July 2020  

Eskom has commenced a process to cancel the fuel oil supply contract awarded to Econ Oil & Energy during 2019. This would have been a five-year contract. A review of the circumstances leading to the tender being awarded to the company revealed serious irregularities in the process, 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.

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, Eskom will not hesitate to take steps to cancel such contracts, and to recoup any losses that it might have incurred as a result of any irregular actions.

Issued by Eskom Media Desk, 31 July 2020