EFF condemns Eskom CEO’s corruption of brining contractors to Eskom without due process
5 March 2020
The EFF condemns the Eskom CEO Andre de Ruyter who confessed to corruption, unethical and unlawful conduct during the SCOPA Eskom hearings in parliament last night, 04 March. When asked by the EFF as to whether in his short time as CEO at Eskom, has he ever brought any companies for consideration of contracts with Eskom; he answered to the affirmative.
Andre de Ruyter indicated that he has brought four companies for what he calls "potential" Eskom contractors. He even indicated that these companies can be subjected to PFMA requirements only at a later stage.
This is corrupt, unethical and unlawful, consistent with the culture of state capture in South African SOEs. South African procurement laws demand SOEs to engage in an open, transparent and competitive bidding process before companies can be considered for any contracts. It is therefore unlawful that Andre de Ruyter is considering contractors without any due process as prescribed in the law.
The EFF demands that he must discontinue all engagements he has initiated with any contractors without due process. We will be writing a legal letter to him demanding his commitment that none of the companies will ever be givine any contracts at Eskom without due process.
Andre de Ruyter must appreciate that Eskom is a public asset and not his close corporation or a private company he has inherited from his colonial ancestors. State Owned Companies must be led with uttermost integrity; you cannot be considering companies for contracts simply because they have access to you in your private space and through private relations.
The question is, what about those companies who do not have access to the CEO, yet have adequate capacity and can meet the requirement?
The troubles of Eskom have been created by managers who conduct business affairs like Andre de Ruyter. Billlions of rands have been looted through the abuse of single and sole source contracts by Eskom management who also use white owned and dominated companies HKA, which was previously Hill International. The use these white dominated companies because they know that white corporate South Africa is feared and protected, even by established media houses.
We also demand the immediate abondomnment of the single/sole source contract strategy as it has been abused over the years to loot Eskom. No company must ever be contracted on a single/sole source contract when there are many other companies that can also deliver the same services, particularly black owned companies.
The entire procurement policy of Eskom must be reviewed and strengthen to ensure participation of black owned companies. Above all, the Chief Procurement Office must be capacitated to help stop all the abuse that has occurred and recover all the money looted through single/sole source contracts.
As things stand, Andre de Ruyter seems set on the route of privatization of Eskom that is consistent with the corrupt culture which put Eskom in its crisis in the first place. He must be warned to repent or face the full might of the organized working class.
Issue by Vuyani Pambo, National Spokesperson, EFF, 5 March 2020
