Question NW4653 to the Minister of Public Enterprises

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03 January 2023 - NW4653

Profile picture: Essack, Mr F

Essack, Mr F to ask the Minister of Public Enterprises

(1) What on-site monitoring mechanisms has Eskom put in place to supervise external contractors to prevent interference with plant performance as it has recently been revealed that a contract worker was arrested for sabotage at Camden Power Station after he admitted to intentionally removing the oil drain plug causing oil burners to trip repeatedly; (2) whether Eskom will re-evaluate all active contracts to root out any traces of corruption; if not, why not; if so, what are the relevant details?

Reply:

According to Information Received from Eskom:

(1) Eskom makes use of various security measures (human and technological), and various detection and monitoring systems (covert and overt), to monitor movements and secure areas within the plants. (In order not to disclose and compromise security measures, details thereof are deemed sensitive and are thus limited for disclosure.)

(2) Eskom Security is in the process of screening all active contracts, including employees of contractors employed at Eskom sites and companies against whom investigations (criminal, civil or disciplinary) have been launched, conducted/completed, or are in progress. The law enforcement agencies, particularly the State Security Agency, is also engaged in assisting Eskom in conducting the screening of contractors and suppliers to Eskom.

In addition, Eskom has instructed that the SAPS security clearance checks are required for contractors, prior to granting admission to Eskom sites. Eskom Security is compiling a database of companies and persons to enable the listing/red-flagging of individuals and entities as part of due-diligence investigations.

Eskom has a risk-based approach to perform contract reviews in which all flagged contracts are subjected to a preliminary investigation to empower management to make informed decisions. The flagging instruments are in the form of contract management in which, contract performance is monitored; the Fraud Hotline where stakeholders can report suspicious contracts; internal and external audit findings; as well as complaints against the Procurement & Supply Chain Management system.

Eskom is enforcing controls on new contracts and those which are being targeted for modifications or review. In addition, where there is irregular expenditure on contracts, they are reviewed for elements of fraud and corruption