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Businessman ‘discouraged’ from testifying about Eskom tender at Zondo commission

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Commission into state capture Picture: Deaan Vivier/ Gallo Images, Netwerk24, file
Commission into state capture Picture: Deaan Vivier/ Gallo Images, Netwerk24, file

The commission of inquiry into state capture has apparently discouraged a businessman from testifying before it about how a multimillion-rand Eskom tender was allegedly stolen from his company.

Oupa Teke, the owner of Castle Terminal, wants to testify about how Bidvest Electrical, Aurecon and Voltex Lighting “captured” a power utility contract and excluded his company, according to a written request he sent to the commission, which City Press has seen.

However, Teke said he had been discouraged from giving the evidence by Kevin Naidoo, a Zondo commission official.

Instead, he said, he was advised to refer the matter back to Public Protector Busisiwe Mkhwebane, who had initially conducted an investigation into the matter.

“Naidoo said the commission does not have money to investigate the matter,” said Teke.

“He recommended that I should not appear before the chairperson, Deputy Chief Justice Raymond Zondo, adding that he would refer the case back to the Public Protector for reinvestigation.

“He even suggested that he had a friend at the Public Protector’s office who could investigate it, but said he does not want me to appear before the chairperson,” he said.

The commission’s spokesperson, Mbuyiselo Stemela, confirmed that the commission had investigative powers and resources.

He also confirmed receiving Teke’s request to appear before the commission.

However, he could not confirm whether Teke was discouraged from appearing before the commission, nor whether he was advised to refer the matter back to the Public Protector.

According to Teke, Castle Terminal was awarded a contract to provide energy-efficient lighting at Eskom’s Arnot and Grootvlei power stations in 2010.

“Voltex had an unfair advantage over other bidders due to its prior knowledge of the specifications,” read the report, which was released in October 2017.

The specifications for the tender, covering a total of six power stations, were written in part by Voltex, according to Teke.

In a letter written to Teke in November, Eskom chairperson Jabu Mabuza confirmed that Voltex was subcontracted by Aurecon for the pre-tender audit. City Press has seen a copy of the letter.

Voltex scored contracts for four of the six power stations where work needed to be done: Tutuka, Hendrina, Camden and Komati.

Castle Terminal’s contract was terminated in 2011, when Voltex refused to allow the company to use alternative material other than that sourced from Voltex, according to Teke.

The matter, and the alleged irregular inclusion of Voltex, was investigated by the Public Protector.

While her report found that the termination of Castle Terminal’s contract was not improper, the inclusion of Voltex was deemed irregular.

The report found nothing untoward regarding Aurecon’s involvement in the project.

“Voltex had an unfair advantage over other bidders due to its prior knowledge of the specifications,” read the report, which was released in October 2017.

A Voltex spokesperson, who declined to be named, said the matter was an Eskom issue.

“Voltex has, together with senior legal counsel and for a period of several years, dealt with this issue comprehensively and refutes any allegation of misconduct and collusion with contempt,” he said.

Eskom Photo: Argief

“Voltex has submitted itself to all due process, which has not found any instance of wrongdoing on behalf of Voltex. The matter remains an Eskom issue and Voltex cannot comment on behalf of Eskom’s processes,” the Voltex spokesperson said.

Kalay Maistry, an Aurecon spokeperson, said the company had done its own investigation in addition to that of the Public Protector, and found no fault related to the company nor to its employees.

Maistry also said Teke had threatened to smear the company’s name after his company and Aurecon did not enter into a joint venture on a specific project.

Teke flatly denied this and instead produced a letter from Aurecon’s lawyer, inviting him to a meeting after he tweeted about alleged corruption involving the company. He said that towards the end of 2016, he approached Aurecon with a request to pursue project opportunities.

But, said Maistry, when this did not transpire, Teke stated his intent to pursue the matter.

In March 2018, Teke sent an email to Aurecon advising that he would, among other things, approach the court to review the Public Protector’s report.

Eskom said that Voltex was awarded the tender through legitimate means and no company was prejudiced.

This, despite Mabuza having apologised to Castle Terminal in writing. The apology was part of the letter he had written to Teke in November.

The inclusion of Voltex in the lighting tender was a violation of the provision of Eskom’s procurement policy, Mabuza said in the letter.

“The Eskom board consequently apologises to Castle Terminal,” Mabuza wrote.

In the letter, he also stated that disciplinary proceedings were under way against the project and procurement managers who were responsible at the time, and confirmed that the contract was with Aurecon, which was subcontracted to Voltex.

Bidvest did not respond to questions sent via email.

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