Eskom sneaked an inflated advance payment of R600m to Chinese firm Dongfang for a controversial R4bn tender to supply a new boiler at its Duvha power station in Mpumalanga. This emerges from a report by audit firm KPMG, seen by Business Day. Eskom decided to award the tender to the state-owned Chinese company even though its offer was R1bn more expensive than rival bids, just days after the bids were reviewed at the 11th hour by Trillian, an advisory firm majority-owned by Gupta lieutenant Salim Essa. The advance payment provides further evidence for claims made in court proceedings by losing bidders Murray & Roberts (M&R) and General Electric (GE) that the tender was rigged to favour Dongfang. KPMG, which was appointed by Eskom to conduct an independent review of the procurement process, said the board tender committee had consented to a 15% advance payment, which was 5% higher than "what was agreed to between the parties" during negotiations."According to our minutes, further corr...
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