Eskom on Friday announced that it had cancelled a contract it had entered into with Econ Oil & Energy — the country’s first black female-owned oil plant — after it found that there were some questionable issues surrounding the contract.
In a statement, the power utility said: “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.”
The five-year contract was signed in 2019 but Eskom said it had since instigated legal proceedings to terminate the contract.
Meanwhile, it was also conducting an internal probe into how the contract was approved.
“Where applicable, disciplinary processes will be pursued and criminal charges will be laid,” the parastatal said.
On its website, Econ Oil & Energy describes itself as a privately owned black female business and a Level 2 B-BBEE company.