THE National Union of Mineworkers (NUM) has welcomed the ruling by the South Gauteng High Court to set aside the R8 billion tender between Eskom and Econ Oil after the matter was argued on the 9th of June 2021.
The court found this week that the contract was unlawful and irregularly awarded.
The contract entered into by the two companies in 2019 changed from R850 million to R8 billion and involved supplying Hendrina power station with fuel oil.
The mineworkers’ union said it now wants action and has called on the board members or executive management who were involved in the processing of the approval of the Eskom– Econ Oil contract to resign with immediate effect.
Former Eskom chief procurement officer Solly Tshitangano could face criminal and civil charges for his role in awarding R8 billion in contracts to Econ Oil after the power utility became aware of serious allegations of wrongdoing by the company.
Tshitangano’s disciplinary hearing chairperson, advocate Nazeer Cassim, submitted his ruling to Eskom after hearing evidence in May.
He found that Tshitangano had intentionally acted in the interests of Econ, breaching his common law and fiduciary duties toward Eskom in the process – and recommended that Eskom take “appropriate steps against all those involved improperly in the Econ Oil tender
“The NUM supports all government efforts to fight all forms of corruption without due regard for any individual`s social standing in society. It is for this reason that the NUM welcomes the initiative by Eskom to review the Econ oil 2019 contract and the court finding thereto,” said NUM’s general secretary William Mabapa.
“This is an important governance victory consistent with the ruling party`s commitment to cleanse the state of malfeasance and reclaim all the loot for better use in advancing service delivery and the democratic course.”
Mabapa said this will go a long way in fighting corruption in state-owned entities and the private sector.
“These are the kind of deals that have crippled state-owned entities and facilitated a looting frenzy in the public sector and the collapse of service delivery,” said NUM.
“Eskom today has no sufficient financial capacity to sustain service to South African society as a result of such rot. As the NUM, we welcome the finding and determination of the court.”
Presiding officer judge Bashier Vally said the tender was tarnished by “irregularity and illegality” and that it contravened public procurement policies.
“The managing and implementation of the tender was blemished by irregularity and illegality of a most fundamental kind, and could under no circumstances be rescued. Had the Board applied its mind properly to the matter it would have had no choice but to forsake the outcome of the negotiations….The only just and equitable pathway open to a court in a matter with so fundamental a breach of the law is to review and set aside the decision of the Board,” reads part of the judgment.
Eskom has also welcomed the high court judgment to set aside the disputed tender.
“This is yet another successful attempt by the Board and management of Eskom in their endeavours to safeguard the public purse by setting aside irregular tender awards where prima facie evidence of unlawfulness exists. In setting aside the decision to award the tender, Judge Vally concurred with Eskom that the tender process was tainted by palpable irregularities,” said Eskom in a statement.
“This court judgement is a vindication of the Board’s and management’s unwavering stand to protect Eskom’s financial and operational interests from corrupt elements, thereby safeguarding the public purse,” said Eskom Group Chief Executive André de Ruyter.
“At the beginning of 2020, when we assumed the mandate to lead this organisation, we pledged to investigate and set aside all contracts where evidence of corruption has been uncovered. We shall not waiver from that commitment to the people of South Africa, no matter the fight back.”
- Inside Politics
