Eskom is considering handing over its R840 million white elephant of a block of flats near Witbank to local community members -  after cost overruns described by its CEO André de Ruyter as "deplorable". 

The Wilge Residential Development Project was meant to house contractors and artisans working at Kusile power station in 336 flats.  

But six years after the contract for its development was awarded at an initial cost of R260 million in December of 2013, it is standing empty and incomplete.

Construction costs for the housing development were meant to amount to about R770 000 per flat. But by the time construction was halted in December 2019, this had shot up to R2.5 million per unit.  

Total costs, meanwhile, had risen to R840 million. This whole amount has been declared as fruitless and wasteful expenditure by Eskom. 

At a briefing before Parliament's oversight committee on public enterprises on Wednesday, De Ruyter didn't mince his words, calling the fruitless expenditure "deplorable". 

"I may say that we are in advanced discussions with the Department of Human Settlements with a view to making available the Wilge flats to distressed communities in the vicinity," he said.

"They have confirmed in writing to us that they are keenly interested in pursuing this as an option."

USEFUL PURPOSE
"We are therefore very pleased that we should be able to find - ultimately in spite of this very deplorable over-expenditure on this project – that we will be able to find a useful purpose for this particular project".  

De Ruyter said the Special Investigating Unit was probing the build. 

The state-owned power utility has also lodged a civil claim of R75.8 million against the project's former general manager. The manager's name was not shared with the committee.

Eskom spokesperson, Sikonathi Mantshantsha, confirmed to Fin24 that the employee in question had been dismissed.

The over-expenditure on Wilge was initially identified in a probe by law firm Bowman Gilfillan into Kusile.

MPs had a number of further questions about the project – including whether it was put to tender. The CEO promised to answer these in writing.