South Africa Procurement News Notice - 29858


Procurement News Notice

PNN 29858
Work Detail A black-owned company that was “forced” by Eskom to share lucrative work with a white firm has highlighted the alleged anti-transformation approach of the power utility. Sources have claimed that Scrapcore – a white-owned firm – was allegedly forced in as a subcontractor of MK Metals – a wholly black-owned firm – for scrap-metal work estimated at an annual R17 million at Eskom’s Tutuka power station in Mpumalanga. The Star has seen Scrapcore invoices where the company made almost R800 000 in March last year after collecting roughly 293 tons of scrap from Tutuka, allegedly without an Eskom contract and without the knowledge of the supposed principal agreement holders, MK Metals. The contract was awarded during the time that Jabu Mabuza doubled-up as chief executive and chairperson of Eskom. Internal Tutuka documents also show that MK Metals’ contract was terminated in April last year after the company’s tax clearance certificate expired, which disqualified it from doing work at the plant, as well as at Duvha power station in Mpumalanga. However, despite the principal contract holders’ termination, Scrapcore continued doing “subcontract” work supposedly under MK Metals at Tutuka, with allegations it did so until at least December last year.
Country South Africa , Southern Africa
Industry Services
Entry Date 15 Sep 2020
Source https://www.iol.co.za/the-star/news/black-firm-says-eskom-forced-it-to-share-multimillion-rand-tender-with-white-company-cc68837e-9755-4a9a-a772-47fff043c553

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