Middlemen and tenderpreneurs failed to add value but cost Eskom billions per year

mylesillidge

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Eskom milked dry

Former Eskom CEO André de Ruyter revealed how middlemen and tenderpreneurs cost the power utility billions per year without adding any value.

In his book, Truth to Power: My Three Years Inside Eskom, De Ruyter provided details about how middlemen got very rich at Eskom’s expense.
 
Middlemen or middlewoman
You tell me.
iu
 
You realise he signed off a R500 million security contract for 6 months
You realize that the ANC cadres have done the following:
  • Bearings worth R110,000 was purchased for more than R400,000.
  • Eskom was billed R370,000 for a compressor refurbishing which should have cost R40,000.
  • A hydraulic oil pump costing R295,000 was bought for R650,000.
  • Eskom paid R80,000 for a pair of knee guards that cost R320 at Builders Warehouse.
  • Eskom was charged R200,000 for a wooden-handled mop which costs less than R100 at most stores.
  • An oil storage container that could have been bought for R80,000 cost Eskom R940,000.
  • Eskom paid a company R600,000 to fix 12 grass trimmers. The power utility could have bought 12 new grass trimmers for R114,000.
  • Eskom paid R26 per single one-ply toilet paper roll, which costs R3.99 at Checkers.
  • A buyer at Kendal Power Station placed an order to refurbish two compressors for R368,550. The price of two new compressors would have been R112,000.
 
You realize that the ANC cadres have done the following:
  • Bearings worth R110,000 was purchased for more than R400,000.
  • Eskom was billed R370,000 for a compressor refurbishing which should have cost R40,000.
  • A hydraulic oil pump costing R295,000 was bought for R650,000.
  • Eskom paid R80,000 for a pair of knee guards that cost R320 at Builders Warehouse.
  • Eskom was charged R200,000 for a wooden-handled mop which costs less than R100 at most stores.
  • An oil storage container that could have been bought for R80,000 cost Eskom R940,000.
  • Eskom paid a company R600,000 to fix 12 grass trimmers. The power utility could have bought 12 new grass trimmers for R114,000.
  • Eskom paid R26 per single one-ply toilet paper roll, which costs R3.99 at Checkers.
  • A buyer at Kendal Power Station placed an order to refurbish two compressors for R368,550. The price of two new compressors would have been R112,000.
It isn't able to comprehend that.
 
You realize that the ANC cadres have done the following:
  • Bearings worth R110,000 was purchased for more than R400,000.
  • Eskom was billed R370,000 for a compressor refurbishing which should have cost R40,000.
  • A hydraulic oil pump costing R295,000 was bought for R650,000.
  • Eskom paid R80,000 for a pair of knee guards that cost R320 at Builders Warehouse.
  • Eskom was charged R200,000 for a wooden-handled mop which costs less than R100 at most stores.
  • An oil storage container that could have been bought for R80,000 cost Eskom R940,000.
  • Eskom paid a company R600,000 to fix 12 grass trimmers. The power utility could have bought 12 new grass trimmers for R114,000.
  • Eskom paid R26 per single one-ply toilet paper roll, which costs R3.99 at Checkers.
  • A buyer at Kendal Power Station placed an order to refurbish two compressors for R368,550. The price of two new compressors would have been R112,000.
I calculated all your figures and you are still more than R490 million short
Do you know what is Five Hundred Million Rand for 6 months for security, think about it
 
I calculated all your figures and you are still more than R490 million short
Do you know what is Five Hundred Million Rand for 6 months for security, think about it
Do we have all facts? No. Do you have any prove that De Ruyter pocketed any money becuase of this? No. We have no idea what the reason was, and it is a drop in the ocean compared to what is stolen each year, we have no idea! Yes it’s sad to spend this amount of money across various plants on security, but imagine if there wasn’t security, we probably would have had a grid collapse by now.
 
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