Eskom must not implement Areva nuclear contract
09 September 2014
The DA will write to the CEO of Eskom, Tshediso Matona, urging the state utility to refrain from implementing its contract with French nuclear company Areva for the replacement of Koeberg power station's steam generators. Eskom must wait until all legal issues relating to this contract have been resolved. Going ahead and implementing it could end up costing billions in damages and litigation costs.
This comes as Westinghouse Electric SA, which was also a bidder for Eskom's contract, secured a court order from the South Gauteng High Court in Johannesburg, to have all documents relating to Eskom's decision to award the R4 billion tender to Areva handed over to it.
Media reports suggest that the Minister of Public Enterprises may have been deliberately misled by senior members of the Eskom board of directors, influencing the Minister into awarding the steam generator replacement contract contrary to the recommendations of Eskom's technical team and "excops" committee which consists of senior Eskom managers.
Recent events have raised the stakes for Eskom, and could have significant implications for the public purse.
It now seems likely that the awarding of the tender - which has already taken four years to finalise - will likely come under review, and should foul play indeed be found, the implementation of the contract may potentially cost the cash-strapped Eskom billions of rands in damages and wasteful expenditure in procurement costs; all ultimately at the expense of the consumer.
The DA has already requested the Minister of Public Enterprises, Lynne Brown, to supply the DA with all documents relating to the tender, namely:
The Technical team's decision and minutes regarding the tender;
Committee minutes from the Board Bid;
The findings of the Board ordered technical review; and
Any other relevant records of decision pertaining to the tender.
Eskom must not only act to ensure that the conflict between itself, Areva and Westinghouse is speedily resolved but must also take all steps to ensure the mitigation of any financial loss by the state entity as a result.
The DA will continue to monitor the situation closely.
Statement issued by Natasha Michael MP, DA Shadow Minister of Public Enterprises, September 9 2014
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