POLITICS

Eskom holding back documents on Koeberg steam generator contract - Westinghouse

Company says that it remains of the view that the tender process was irregular, unfair and unlawful and it intends pursuing review proceedings

"Westinghouse launched an urgent application on or about 27 August for two kinds of relief as a precursor to its stated intention to launch expedited review proceedings arising from the tender process for the provision of six new steam generators to be installed at the Koeberg nuclear power plant. In the first instance, it sought an interim interdict in order to prevent Eskom and Areva signing or implementing the contract that had been awarded to Areva. Secondly, Westinghouse sought an order compelling Eskom to provide copies of all relevant documents leading up to and forming the basis of its decision to award the tender to Areva.

"The application for an interim interdict was based primarily on inside information that Westinghouse obtained from three different senior sources from within Eskom. The information was conveyed to Westinghouse on the basis that Westinghouse would not convey the identity of the sources for obvious reasons. Westinghouse believed such inside information to be reliable. The application for Eskom to provide copies of all relevant documentation was based on a self-standing right to be given such documents and was not dependant on the inside information obtained.

"Prior to the hearing of the application, Westinghouse withdrew its claim for an interim interdict, but persisted with the relief sought for its attorneys of record to be granted access to copies of all relevant documents leading up to and forming the basis of Eskom's decision to award the tender to Areva. Such relief was granted by Judge Sutherland on 5 September 2104 and Eskom was given five calendar days to provide these documents.

It is Westinghouse's view that Eskom has failed to comply with this court order in material respects and of particular concern is the fact that Eskom has failed to provide the minutes of the relevant board tender committee meeting on 12 August 2014, at which the decision to appoint Areva was apparently made and has also failed to provide a record of the secret ballot which was taken at that meeting. These omissions in respect of the documents provided are but two examples of very many documents which, although falling within the ambit of the court order, are yet to be provided.

"Notwithstanding, on the basis of the documents that have been provided, Westinghouse remains of the view that the tender process was irregular, unfair and unlawful and it intends pursuing review proceedings.

"There is a long way to go still in this matter and Westinghouse reserves its position to comment more fully on the statement of the Chairman of the Board, Mr Zola Tsotsi, once Eskom complies with its obligations in furnishing all of the documents falling within the ambit of the court order. The facts will no doubt speak for themselves once all the evidence is to hand, and the withdrawal of the application for interim relief does not lead to the conclusions which Mr Tsotsi seeks to draw in his statement."

Statement issued by Westinghouse, September 15 2014

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