Eskom's diesel procurement contracts questionable  

15 March 2015

I will be writing to Minister of Public Enterprises, Lynne Brown, requesting that the scope of the independent inquiry, announced last week Thursday, include an investigation into the awarding of all procurement orders for the supply of diesel to Eskom (see Sunday Times report).  

This follows media reports today suggesting that two suppliers, KEKOIL and Kamoso, were awarded diesel supply contracts without the proper credentials. Monica Nkosi, owner of Kamoso, is also quoted in the report as saying that she was supplying diesel in the absence of a formal contract.

This raises serious questions regarding the processes followed to identify suppliers and whether due diligence was exercised in the thousands of deals made to procure diesel. 

The fact that the high cost of diesel was one of the issues raised during a meeting between Minister Lynne Brown and Eskom's board of directors indicates that a more cost effective method of procuring the diesel could have been followed.

Minister Brown must provide parliament with a detailed list of transactions with all its diesel suppliers and a timeline of those contracts. 

Despite massive bail-outs funded by the South African public, Eskom seems to be moving from one scandal to the next as a result of its internal collapse.

If it is ascertained that irregularities marred the awarding of these diesel contracts, those implicated must be dealt with according to due process.

The DA will continue to push for the independent inquiry to complete its work expeditiously and table its findings in Parliament to ensure accountability.

Statement issued by Natasha Mazzone MP, DA Shadow Minister Public Enterprises, March 15 2015

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