Eskom defends controversial R250m security tender

Eskom is adamant it followed procurement processes when spending R250m on a three-month security tender, despite concerns about possible corruption in the contract.

The multi-million-rand tender was awarded to Fidelity Services Group using emergency procurement policy and was initially estimated to cost R500m.

On Sunday the power utility said it paid R250m for services from July to September 2022. 

“The placement of the Fidelity Services security contract was in line with Eskom’s procurement procedure and National Treasury directives for emergency procurement of services.

“The placement of the security contract was necessitated by information received by management indicating there was a potential serious security risk to Eskom’s operations and assets.”

In May, City Press reported the tender was awarded based on findings of an intelligence report conducted by George Fivaz Forensic & Risk, which is under scrutiny by the Special Investigating Unit (SIU).

After speculation about possible corruption in the awarding of the tender under emergency procurement, Eskom defended the contract, saying it was willing to work with authorities in an investigation into the tender.

“Across Eskom sites there was daily and monthly monitoring of activities and the payment of invoices over the three months was in line with the contracted services.

“Eskom is aware of the publication on media and internet platforms of unverified messages and claims of corruption and fraud linked to the R500m contract. Given the seriousness of such allegations, Eskom will work with the relevant authorities in any investigation.”

Protection of infrastructure at the power utility continues to be a cost for government.

In May President Cyril Ramaphosa deployed 880 soldiers to protect Eskom power stations for six months at a cost of more than R146m. 

The presidency said: “Members of the military will assist police to protect Eskom power stations around the country where sabotage, theft and other crimes may threaten the functioning of stations and supply of electricity,” the presidency said.

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