Eskom says its security contract with Fidelity is above board

Cape Town 181019 Eskom power plant in Atlantis Photographer:Ayanda Ndamane/African News Agency (ANA)

Cape Town 181019 Eskom power plant in Atlantis Photographer:Ayanda Ndamane/African News Agency (ANA)

Published Jun 11, 2023

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Johannesburg – Energy provider Eskom says that their security contract with Fidelity Services was in line with Eskom’s procurement procedure and the National Treasury directives for emergency procurement of services.

Eskom, in a statement, said that the placement of the security contract was necessitated by information received by management indicating that there was a potential serious security risk to Eskom’s operations and assets.

"The contract was established for the period July 2022 to September 2022 with an estimated budget of R500 million. It was placed under emergency procurement to avert potential threats and safeguard critical sites at Eskom. The scope of the contract mainly focused on the critical power stations, strategic corporate sites, as well as the transmission network," said Eskom.

The entity said that prior to placing the contract, Eskom assessed the quotation from the supplier in response to Eskom’s request and was satisfied with proceeding with their offering, including the prices quoted.

The state-owned entity said that across Eskom sites, there was daily and monthly monitoring of activities, and the payment of the invoices over the three months was in line with the contracted services. A total of approximately R250m, including VAT, was spent for the duration of the contract.

"Eskom is also aware of the publications on various 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 on any investigation.

“In addition, Eskom encourages anyone with any credible evidence on concerns relating to this matter to contact the authorities," said the power utility.

The Star

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