19.9 C
Johannesburg
- Advertisement -

The R500 million Fidelity Services contract is in line with procurement processes – Eskom

Must read

STAFF REPORTER

Eskom has reacted to Sunday media reports which reveal that the power utility paid Fidelity R500 million “in three months without competitive bidding” for the services of 400 guards saying the contract is in line with its procurement processes.

In a statement Eskom said it is aware of the publication on various media and internet platforms of unverified messages and claims of corruption and fraud linked to the R500 million contract adding that given the seriousness of such allegations, it will work with the relevant authorities on any investigation. 

“The power utility Eskom would like to reassure South Africans that the placement of the Fidelity Services security contract was in line with Eskom’s Procurement Procedure and the National Treasury directives for emergency procurement of services”.

Eskom said the placement of the security contract, three months from July 2022 to September 2022, was necessitated by information received by management indicating that there was a potential serious security risk to Eskom’s operations and assets. 

The contract was established from the period July 2022 to September 2022 with an estimated budget of R500 million. 

It was placed under emergency procurement to avert potential threats and to safeguard critical sites at Eskom. 

The scope of the contract mainly focused on the critical power stations, strategic corporate sites as well the Transmission network, Eskom said.

Prior to placement of the contract, Eskom said it assessed the quotation from the supplier in responding to Eskom’s request and was satisfied on proceeding with their offering including the prices quoted.

“Operationally, across Eskom sites there was daily and monthly monitoring of activities and the payment of the invoices over the 3 months were in line with the contracted services.

“A total of approximately R250 million including VAT was spent for the duration of the contract,” it said.

In addition, Eskom encourages anyone with any credible evidence on concerns relating to this matter to contact the authorities.

INSIDE POLITICS 

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Oxford University Press

Latest article