DA says shortlisting of corruption-tainted consultancy raises governance concerns
February 18, 2008
By SAMANTHA ENSLIN-PAYNE
Eskom's corporate governance has been called into question after the utility shortlisted as a potential supplier a German firm found guilty of corruption.
Manie van Wyk, the spokesperson on public enterprises for the Democratic Alliance (DA), said yesterday that Eskom's decision to shortlist German engineering consultancy Laymeyer International raised questions about the parastatal's lack of concern for good corporate governance.
In 2003 Laymeyer was convicted in Lesotho of paying bribes worth R2.5 million to Mashupa Sole, the former chief executive of the Lesotho Highlands Development Authority. This was in connection with construction of the Lesotho Highlands Water Project. In 2006 the World Bank blacklisted Laymeyer for seven years.
Eskom has now shortlisted Laymeyer, in a consortium with South African engineering consultancy Bigen Africa, in a category called Panel B for firms to design new power stations.
The DA said this was part of an Eskom initiative in which local consulting engineers, or consortiums of local and international firms, would be appointed to design and supervise the construction of new power points. All Eskom work for the next five years would be given to the companies selected.
Eskom could not be reached for comment yesterday.
Van Wyk said it was unlikely that Eskom was unaware of the corrupt dealings in the Lesotho Highlands Water Project as all companies were required to make declarations regarding their performance records when making submissions.
Meanwhile, the Mail & Guardian reported on Friday that Chancellor House, the ANC's investment company, would withdraw from two Eskom contracts. Chancellor has a 25 percent stake in Hitachi Power Africa, which, as part of a consortium, won contracts to supply boilers to Eskom's two new coal-fired power stations.
Auditing firm Deloitte declared the process fair and free from political influence, despite a conflict of interest arising because Mohammed Valli Moosa, Eskom's chairman, also sits on the ANC's fundraising committee.
Hitachi Power Africa referred all questions regarding Chancellor's exit to Eskom. Asked if the exit would affect Hitachi's black economic empowerment compliance, Brian Dames, who is in charge of Eskom's construction programme, said on Friday that the contract was with Hitachi in Japan, which needed to make sure its contractual obligations were in order.
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