Eskom boss gave daughter’s company R800-million contract – Report

Former Eskom executive Matshela Koko has been accused of irregularly awarding a company an R800-million tender during his time at the power utility.

The Sunday Times has reported that Koko guaranteed multinational engineering company Asea Brown Boveri (ABB) contracts worth R6.5 billion if they subcontracted work on the Kusile power station to a company part-owned by his stepdaughter, Impulse International.

ABB, a Swiss company, made the statement in reports submitted to the SIU, which is now investigating the matter. It is one of 11 companies under investigation for looting Eskom, stated the report.

It is alleged that in March 2015, ABB was awarded a contract worth R2.2 billion for work at Kusile. After it won the contract, it was told to appoint Impulse International as a subcontractor, and gave it work worth R800 million.

This was despite Impulse International failing subcontractor qualification questionnaires twice, with scores of 59% and 43%. The report added that the work Impulse International did at Kusile was found to be “substandard and overpriced”.

Poor workmanship

Reports of Koko’s stepdaughter, Koketso Choma, and her company receiving big Eskom contracts first made headlines in 2017.

Choma, who was 26 at the time, was a director at Impulse International. After her appointment, the company received eight contracts from Eskom.

Following the reports, Choma resigned from the company and Koko stated that he did not know she was working at the company when the contracts were awarded.

Eskom recently stated that substandard work at the Medupi and Kusile power stations is a problem for the country, and as of February 2019 the units were continuing to show a lack of reliability and were not contributing meaningfully to the grid.

More bad news for South Africans is that Eskom will hike electricity prices from 1 April 2019.

Nersa granted price hikes that equate to a 25.2% increase over the next three years.

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Eskom boss gave daughter’s company R800-million contract – Report