SOUTH Africa’s bid to secure 2,000 megawatts of so-called emergency electricity has hit an obstacle, with the state power utility asking the biggest winner of the tender to indemnify it against any adverse outcomes from corruption allegations, two people familiar with the situation said.
A losing bidder, DNG Power Holdings, alleged in a lawsuit that government officials acted corruptly in awarding Turkey’s Karpowership about 60% of the tender that will see it supplying energy from three ship-mounted power plants off the South African coast.
While DNG, which demanded that it replace Karpowership, lost the High Court case in January it has been allowed to appeal.
The government and Karpowership have denied wrongdoing.
Karpowership has declined to sign an indemnity clause, the people said, asking not to be identified because the discussions have not been made public.
Eskom has yet to revert with a new proposal they said. Eskom, South Africa’s
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
