Eskom has scrapped a multi-million rand contract it has with a company linked to a close family member of the former board chairperson of the power utility after it was found the tender was irregular.
The power utility said on Friday it would clamp down on any irregular contracts.
The R100 million contract was awarded to a company of former Eskom board chairperson Jabu Mabuza’s niece Nomvula Mabuza.
The tender was awarded last year and it was found that it was flawed.
Eskom said the contract was for five years, but since it was discovered that it was flawed it has been cancelled.
“A review of the circumstances leading to the tender being awarded to the company revealed serious irregularities in the process, including inflated prices charged to Eskom when lower priced alternatives were evident,” said Eskom in a statement.
It said it was all looking at the role of all those involved in the tender including its own officials and those from outside.
Should any employee found to be implicated in the tender disciplinary action would be taken against them and criminal charges lodged with the police, it said.
“As Eskom has previously stated, a process to review all major contracts commenced earlier this year, and where evidence of corruption or other irregularity has been discovered, Eskom will not hesitate to take steps to cancel such contracts, and to recoup any losses that it might have incurred as a result of any irregular actions,” it said.
Nomvula Mabuza’s company IDS Africa was given the contract last year to maintain boiler tubes at Medupi.