Eskom doing business with corrupt companies is a mistake, says Outa CEO

In a recent interview, Eskom’s Sikonathi Mantshantsha disclosed that the state-owned entity still continues to conduct business with companies that have been found guilty of corruption. The spokesperson noted that the power utility looks at contracts individually, instead of blacklisting corrupt companies from doing business with the SOE. Wayne Duvenage, CEO of Outa (Organisation Undoing Tax Abuse) reckons that this is a ‘mistake’. Speaking to MyBroadband, Duvenage said, “we find this logic by Eskom to be irrational, and it certainly does not get down to tackling corruption with suppliers to state-owned enterprises.” Read the original article, ‘Ban corrupt companies, Eskom — Outa CEO.’ Republished with permission. – Jarryd Neves

Ban corrupt companies, Eskom — Outa CEO

By MyBroadband*

Outa CEO Wayne Duvenage said it is a mistake for Eskom to continue to do business with companies found guilty of corruption.

Eskom spokesperson Sikonathi Mantshantsha confirmed that they continue to do business with companies that had to pay back the money they pilfered from Eskom through corrupt dealings.

Mantshantsha said they do not blacklist companies. Instead, they look at individual contracts which companies have with Eskom.

Eskom only considers corruption on a contract-by-contract basis. It cancels contracts that involve corruption, but it does not affect other contracts from the same company.

Mantshantsha said if companies found guilty of corruption have other contracts which were not affected by the corruption, there is no reason to remove them.

Duvenage said Eskom’s strategy around corruption is misguided.

“We find this logic by Eskom to be irrational, and it certainly does not get down to tackling corruption with suppliers to state-owned enterprises,” said Duvenage.

“If an organisation that supplies services to Eskom has been found guilty of transacting in a corrupt manner, all contracts should be cancelled.”

“In this way, senior executives of these service provider companies will go to the necessary lengths to ensure their staff are not transacting corruptly [at all times].”

Duvenage said one could not be half pregnant when it comes to corruption.

“A company is regarded as corrupt if it has been involved in illegal enrichment transactions, and the state-owned enterprise should ban the company from transacting on all fronts,” he said.

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