The Broad-Based Black Economic Empowerment (BBBEE) Commission has found that State-owned Eskom failed to comply with the BBBEE Act in awarding a tender for the Duvha power station to a Chinese-owned entity.
The tender was awarded to Dongfang Electric Corporation, an entity with 0% black ownership, when the tender specified Level 4 BBBEE compliance, the commission said in a statement on Wednesday.
As a result, the commission has recommended that Eskom cancel the contract and conduct an independent audit of all contracts above R1-billion awarded from 2014 in order to check their compliance with BBBEE requirements.
In an emailed response to questions posed by Engineering News Online, Eskom confirmed that it was in receipt of the report issued by the commission.
The entity added that it was in the process of considering all of the findings and recommendations contained in the report with a view to ensuring that Eskom complies with all its obligations in terms of applicable law.
The findings follow after the commission received an anonymous complaint alleging that the tender process for the boiler at the Duvha power station by Eskom did not comply with the requirements of the BBBEE Act.
The commission has since referred the findings in the matter to Public Enterprises Minister Pravin Gordhan and the National Treasury director-general Dondo Mogajane for further consideration in line with the recommendations.