Eskom’s R500 million security contract could have cost R30 million — report

Eskom, the South African power utility, awarded a three-month security contract worth R500 million to Fidelity Services Group, which could have cost only R30 million, according to a report by City Press.  

The contract was allegedly given by Eskom executives under then-CEO André de Ruyter. Eskom’s acting head of security, Karen Pillay, had approached NSA Global to develop an emergency security contract, which was then channeled to Fidelity.  

NSA Global claimed that the contract was awarded without its knowledge and that a similar model from NSA Global would have cost Eskom only R30 million.  

Pillay stated that the contract was awarded without the knowledge of state security entities due to a lack of trust in South Africa’s law enforcement agencies. Eskom denied any wrongdoing and confirmed that it followed its emergency procurement procedure.  

Pillay has been placed on precautionary suspension, and an investigation is underway. The National Treasury stated that there was nothing wrong with the contract according to the Public Finances Management Act. 

Read the full article here.