According to the B-BBEE Commission, Eskom failed to comply with the Broad-Based Black Economic Empowerment Act when it granted a tender to a Chinese company that had 0% black ownership for the Duvha power station in Mpumalanga.
The utility gave R600m to Dongfang Electric Corporation Limited as an advance payment for a R4 billion tender to supply a boiler to the power station.
To discuss this tender, Bongani Bingwa speaks to B-BBEE Commission commissioner Zodwa Ntuli.
We would say there is undoubtedly an ignorance of the B-BBEE legislation both from the government entities as well as the private sector. That is the reason why the commission's role is essential, particularly now.— Zodwa Ntuli, Commissioner - B-BBEE Commission
She says this is an example of the State's non-compliance.
When the investigation was completed, and preliminary findings issued to Eskom, Eskom was able to see where things went wrong, and they were cooperative to remedy the situation. If we solve the situation correctly, for instance, then we know that we won't find that kind of disregard of empowerment in the next coming years.— Zodwa Ntuli, Commissioner - B-BBEE Commission
She says when a company disregards its requirements, that company is working contrary to the objectives of the legislation.
That is where we come in as the regulator to ensure that we all work towards achieving the objective. The recommendation we made is that the contract should be cancelled.— Zodwa Ntuli, Commissioner - B-BBEE Commission
Listen below to the full interview:
This article first appeared on 702 : 'The recommendation is that Eskom should cancel the contract'