Eskom pockets R1.7 billion, instead of fixing power station.
- Frederik Herholdt
- Feb 8, 2018
- 2 min read
Duvha power station underwent damage in March 2014 when a boiler exploded in Unit 3 at the station.
According to The Rapport the insurance money meant to be used for fixing Unit 3, went into Eskom's current account and was used for salaries and other expenses.
Eskom said that the unit was damaged due to "over pressurisation of the boiler furnace”.
Exactly how did it happen?
“The furnace pressure had increased beyond the tolerance limit, resulting in a Class 5 explosion which led to the loss of a 600MW unit,” said Eskom.
Tshediso Matona, former Eskom CEO, explained in December 2014 that there were a combination of factors which caused the boiler explosion. Read what he explained here.
The conveyor belt between Middelburg mine and Duvha power station experienced damage in December 2013. This lead to Duvha changing their coal source, which resulted in a different grade, type, and quality of coal going into the boiler. Due to the quality of the coal being fed into the boiler, the coal produced more residue. The build-up of this coal residue was being managed by Duvha.
“However, in conjunction with this there was a build-up of unburnt fuel and insufficient oxygen levels in the boiler,”
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“This factor, coupled with the condition of the boiler and operating practice, resulted in the failure.” Tshediso Matona said.
The tender that is in question.
The tender to fix unit 3 was given to Chinese firm Dongfang, and was R1 billion more than competing bids.
Dongfang's bid was R4 billion to fix unit 3, while competing bids came in at R3 billion from General Electric, and R3.3 billion from Murray & Roberts.
Dongfang was also provided with an advanced payment of 15%, instead of the agreed 10% from Eskom.
City Press reported that it was the Gupta linked firm "Trillian" which recommended to use Dongfang after a so called “initial risk assessment”.
General Electric and Murray & Roberts however were granted an interdict to stop the Eskom tender.
Posted 8 February 2018 | Frederik Herholdt
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