Skip to content
Search

Latest Stories

Eskom sues Deloitte for alleged illegal contracts

SOUTH AFRICA’S Eskom is taking legal action against Deloitte Consulting for the recovery of funds amounting to £10.91 million.

The cash-strapped state power company alleges that the sum of £10.91m is related to improperly-awarded work during 2016.


Eskom has a debt of over £23.71 billion and is dependent on government bailouts to remain operational.

The African firm is facing a judicial inquiry into corruption in state entities. This is in addition to several other probes into mismanagement at Eskom.

Jabu Mabuza, company’s chairman, said in a statement on Monday (21) that his firm filed court papers against the consulting firm, to recover the funds linked to contracts it was awarded by former Eskom executives, accusing Deloitte of unfair practices.

"Information before us shows that Deloitte engaged in activities that were unfair, inequitable, non-transparent and uncompetitive, using off-the-record briefings with Eskom officials to submit proposals, and were granted contracts even though their pricing was way above their competitors," Mabuza said.

Eskom was urging the court to rule the operations relating to a group of tenders as "unlawful and unconstitutional, to set aside the awards, and for Deloitte to pay back the amounts paid to them".

Meanwhile, Deloitte disputed the allegations made by Eskom on Tuesday (22).

The probes were started after leaked documents in 2016 detailed relations between the wealthy Indian-origin Gupta family, former president Jacob Zuma, and deals signed with state companies such as Eskom and other multinational business giants.

The Gupta family and Zuma have repeatedly denied all the allegations.

The detailed investigations have resulted in the resignations and the firing of numerous executives in state-run firms in South Africa.

More For You

FCA

The FCA found both acted recklessly and were knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.

(Photo: Reuters) Reuters

FCA fines former Carillion finance directors £371,700 for market abuse

Highlights

  • Richard Adam fined £232,800 and Zafar Khan fined £138,900 for reckless conduct.
  • Pair aware of financial problems but failed to inform Board, audit committee or market.
  • Fines follow withdrawal of challenges after FCA found Market Abuse Regulation breaches.

The Financial Conduct Authority has fined two former finance directors of collapsed construction giant Carillion a total of £371,700 for their roles in issuing misleading market statements.

Richard Adam and Zafar Khan were both aware of serious financial troubles in Carillion's UK construction business but failed to reflect this in company announcements or alert the Board and audit committee, the regulator found.

Keep ReadingShow less