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Below the management of then-CEO André de Ruyter, Eskom awarded a controversial R500 million, three-month safety contract to Constancy Companies Group, as reported by Metropolis Press. The contract, initiated by Eskom’s appearing head of safety, Karen Pillay, bypassed NSA International, who had initially been approached for an emergency safety answer. Paperwork counsel that the contract with Constancy could have been considerably costlier than options. Pillay’s involvement has led to her suspension, and whereas Eskom and Nationwide Treasury deny any wrongdoing, questions on mismanagement and potential overspending loom over the deal.
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Eskom’s R500 million safety contract may have value R30 million — report
By Myles Illidge
Below then-CEO André de Ruyter, Eskom executives awarded the Constancy Companies Group a R500 million three-month safety contract that might have value R10 million a month, studies Metropolis Press.
In response to the report, the facility utility’s appearing head of safety, Karen Pillay, had approached NSA International to develop an emergency safety contract, which was then channelled to Constancy.
Though Eskom stated it solely spent R250 million throughout the three-month contract with Constancy, an analogous mannequin from NSA International would have value it solely R30 million over the identical interval.
Learn extra: Eskom’s secret safety deal: Constancy Group paid R500 million for three-month contract
Eskom and NSA International officers confirmed the existence of emails between them, wherein NSA International stated it had been “blindsided” by Pillay’s resolution to present the contract to Constancy with out its data.
In December 2021, Pillay approached NSA International and a number of other different corporations for a safety answer to guard Eskom’s infrastructure from sabotage and social unrest.
An NSA International official said that Pillay requested the corporate to pitch a scaled-up mannequin to Eskom, which it did.
“Hours have been spent doing so. Our firm’s mental property was [then] taken and given to Constancy,” stated the official.
He added that NSA International was instructed the settlement with Constancy was established outdoors of Pillay’s authority.
In Might 2023, it was alleged that Eskom had paid the Constancy Companies Group R500 million over three months to offer safety and gather intelligence at its energy stations.
The safety firm’s providers have been reportedly procured by De Ruyter and Pillay and concluded in October 2022.
Eskom spokesperson Daphne Mokwena confirmed that Eskom adopted its emergency procurement process to nominate Constancy.
Learn extra: How the world sees SA: Eskom’s “sluggish movement automobile crash” will get a world highlight
In response to the settlement, the service supplier was to provide the state-owned energy utility with 400 armed guards; aerial surveillance, response providers, and assist; and armoured surveillance and response autos.
Pillay stated Constancy was paid for its providers with out the data of state safety entities as a result of Eskom didn’t belief South Africa’s regulation enforcement companies.
She stated threats to Eskom’s infrastructure additionally current a risk to nationwide safety. With regulation enforcement unable to mobilise at brief discover, it was crucial for Eskom to deploy extra safety measures.
Eskom additionally requested that it present specialised safety guards and expertise deployment for intelligence-led safety of Eskom belongings and infrastructure.
In June 2022, Eskom revealed that it had spent solely half of the budgeted quantity.
“A complete of roughly R250 million, together with VAT, was spent during the contract,” it stated.
Eskom positioned Pillay on precautionary suspension following allegations of her involvement within the safety tender.
The ability utility instructed MyBroadband that Pillay was suspended to permit house for the investigation into the allegations in opposition to her to go forward unhindered.
It didn’t specify which allegations have been being probed.
Learn extra: Eskom’s ludicrous expenditure: R238,000 for a mop – de Ruyter
“No additional feedback will probably be supplied on this matter till the investigation is finalised,” it added.
Eskom has denied that there was something untoward relating to its safety contract with Constancy Companies.
Nationwide Treasury additionally instructed The Affiliation of Personal Safety House owners of South Africa (Tapsosa) there was nothing fallacious with the contract.
Tapsosa stated it escalated the matter to Treasury after being met with silence after writing to De Ruyter and then-Eskom COO Jan Oberholzer.
In response to Tapsosa, Treasury stated the Public Funds Administration Act outlines instances wherein regular procurement processes might be ignored.
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This text was first printed by My Broadband and is republished with permission
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