Basil Read distances itself from companies allegedly overpaid by Eskom

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Construction firm Basil Read says it is not affected by allegations that its joint venture with Stefanutti Stocks was overpaid for its work at Eskom's Kusile Power Station.

The company, which was named among private firms that benefited from overpayments totalling R4 billion, told its shareholders in a statement that it sold its interests in the Stefanutti Stocks Basil Read JV (SSBR-JV) to Stefanutti Stocks in September 2017 because the contract was loss making. 

"The settlement agreement indemnifies Basil Read from any and all liability under, or in connection with the agreement entered into by SSBR-JV with Eskom, whether incurred or arising prior to or after 1 September 2017," said Basil Read in the statement.

Eskom wrote in a briefing document that Public Enterprises Minister Pravin Gordhan has presented to ANC Chief Whip Pemmy Majodina that SSBR JV and Stefanutti Stocks Izazi JV owe the power utility R1 billion.

But Stefanutti Stocks is disputing Eskom's allegations that it was overpaid. The company issued its own statement on Wednesday, saying that it was in fact the one owed money by Eskom. It said it still has a number of outstanding contractual claims and compensation it is pursuing against Eskom.

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