• Eskom has reassured the public that the R500 million security contract awarded to Fidelity Services was in full compliance with its procurement procedures and the National Treasury’s emergency procurement directives. The contract was established in response to a potential serious security risk to Eskom’s operations and assets.
• The company spent approximately R250 million, including VAT, over the contract’s three-month duration. The scope of the contract primarily focused on protecting critical power stations, strategic corporate sites, and the Transmission network.
• In response to unverified allegations of corruption and fraud linked to the contract, Eskom has pledged to cooperate with any investigations and encourages anyone with credible evidence to contact the authorities. The company also urges the public to report any criminal activities to the police or Eskom Crime Line.

In a move to allay rising concerns, Eskom, South Africa’s primary electricity supplier, has provided clarity on the R500 million security contract awarded to Fidelity Services. The company has reassured the public that the contract was in full compliance with Eskom’s Procurement Procedure and the National Treasury directives for emergency procurement of services.

The security contract, which was in effect from July 2022 to September 2022, was necessitated by information received by Eskom’s management indicating a potential serious security risk to the company’s operations and assets. The contract was established under emergency procurement to avert potential threats and safeguard critical sites at Eskom.

The scope of the contract primarily focused on the protection of critical power stations, strategic corporate sites, and the Transmission network. The estimated budget for the contract was R500 million, a figure that has been the subject of public scrutiny and speculation in recent weeks.

Before the placement of the contract, Eskom conducted a thorough assessment of the quotation from Fidelity Services in response to Eskom’s request. The company expressed satisfaction with the offering, including the prices quoted, and proceeded with the contract.

Operationally, Eskom implemented daily and monthly monitoring of activities across its sites. The payment of invoices over the three-month period was in line with the contracted services. A total of approximately R250 million, including VAT, was spent for the duration of the contract.

In response to unverified messages and claims of corruption and fraud linked to the R500 million contract circulating on various media and internet platforms, Eskom has pledged to cooperate with the relevant authorities on any investigation. The company has taken the allegations seriously and encourages anyone with credible evidence relating to this matter to contact the authorities.

Eskom also urges the public to report information regarding all criminal activities to the police or Eskom Crime Line on 0800 11 27 22. This move is part of Eskom’s broader commitment to transparency and accountability, particularly in its procurement processes.

The company’s statement is a clear attempt to reassure South Africans that it is committed to maintaining the highest standards of corporate governance. It also serves as a reminder of the critical role that Eskom plays in the country’s energy sector and the importance of safeguarding its operations and assets.

As the situation unfolds, Eskom’s handling of the security contract and its response to the allegations will undoubtedly be closely watched by stakeholders and the public alike. The company’s commitment to transparency and accountability will be crucial in maintaining public trust and confidence in its operations.