THE ESKOM FILES | Treasury refused Eskom request for R212m contract that could have saved R1.2bn

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The Eskom Files is an ongoing investigation by News24.
The Eskom Files is an ongoing investigation by News24.
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National Treasury denied a May 2020 application by Eskom to appoint construction firm WBHO to finalise urgent work at Camden Power Station at a cost of R212 million – despite warnings from the power utility that it could cost as much as R1.2 billion to keep the lights on if the project did not proceed. 

Adding further confusion was that the decision was not applied equally to two other deviations for the same project for the appointment of an independent environmental officer through Leroy Construction, which was also declined, while Treasury approved a deviation for the consulting engineering firm JG Afrika, which was overseeing the construction work. 

"The National Treasury response indicates inconsistency in decision making as reflected in the approval of one, and not the other two, all of which had precisely the same background and circumstances," a memorandum from Naresh Singh, general manager for coal and clean technologies, on 28 July 2020 reads.

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