US Firm Oracle Pulls Plug on Eskom.

ESKOM says it has put in contingency measures to reduce the related risk of its reliance on Oracle Corporation following contractual dispute with the multinational company.

Oracle has threatened to discontinue its services if Eskom does not pay it the reduced amount of R400 million.

Eskom is only willing to pay R166 million.

The power utility said on Monday that the integrity of its systems will be at risk if software group Oracle pulls its services over a pay dispute.

Eskom has previously said that if Oracle were to withdraw its services, SA would be plunged into darkness.

As the matter drags on, Eskom approached a South African court to compel Oracle to continue its technical support services until April 2022 but its application was dismissed last week, it said.

However, the power utility has vowed to launch an application for leave to appeal.

Debt-laden Eskom is already under pressure from creditors and has struggled for years to provide reliable power, leading to disruptions that ripple through Africa’s most industrialized economy.

 “As far as the technical support services are concerned, Eskom have assessed the risk in the event of Oracle withdrawing technical services support. Eskom has interim risk mitigation processes in place to reduce the risk of its operations being disrupted,” said Eskom in a statement.

“Eskom finds regrettable the manner in which Oracle has handled the matter, and would like to assure the people of South Africa that as an entity dealing with public funds, Eskom will pursue all legal avenues and will not be bullied into paying any monies outside often legal processes.”

  • Staff Reporter
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