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Cape Town - A top subcontractor at Eskom's R105bn Medupi power plant is facing fraud charges relating to welding work for boilers, reported BDLive on Thursday.
Hitachi Power Africa and Eskom told the parliamentary public enterprises oversight committee on Wednesday that documents submitted on welding for boilers were found to be fraudulent.
Hitachi’s chief operating officer Tom Brown said the matter is now being investigated by the police.
"It’s a fraud issue," said Brown. "I cannot say much more."
Eskom is already fighting to impose penalties on contractors over delays and sub-standard work.
The parastatal is heading to the Supreme Court of Appeal in a case involving Hitachi that could allow it to fine firms.
Earlier this month, the National Union of Metalworkers of South Africa (Numsa) said contractors working on the power plant may be deliberately delaying the completion of the project.
"The greatest problem we may be sitting with is sabotage," said general secretary Irvin Jim.
He said the contractors stand to make more money while the project is being delayed.
Eskom said labour unrest and under-performing contractors have made it unable to generate electricity from Medupi until the second half of 2014, marking a six-month delay.
Democratic Alliance MP Natasha Michael said at the time that the setback comes at a hefty price of about R10bn to taxpayers.
"The latest delay forecasts a shortfall of power supply in 2014 of 700MW and comes at an expected 15% price increase, pushing the cost of the project from R91bn to R105bn, an additional R10bn to taxpayers," she said in a statement.
Michael also called on Public Enterprises Minister Malusi Gigaba to take action, but he responded saying that no rash decisions will be taken.
Parliamentarians are also expected to visit the troubled plant where they will ask hard questions about ballooning costs and delays.
Hitachi Power Africa and Eskom told the parliamentary public enterprises oversight committee on Wednesday that documents submitted on welding for boilers were found to be fraudulent.
Hitachi’s chief operating officer Tom Brown said the matter is now being investigated by the police.
"It’s a fraud issue," said Brown. "I cannot say much more."
Eskom is already fighting to impose penalties on contractors over delays and sub-standard work.
The parastatal is heading to the Supreme Court of Appeal in a case involving Hitachi that could allow it to fine firms.
Earlier this month, the National Union of Metalworkers of South Africa (Numsa) said contractors working on the power plant may be deliberately delaying the completion of the project.
"The greatest problem we may be sitting with is sabotage," said general secretary Irvin Jim.
He said the contractors stand to make more money while the project is being delayed.
Eskom said labour unrest and under-performing contractors have made it unable to generate electricity from Medupi until the second half of 2014, marking a six-month delay.
Democratic Alliance MP Natasha Michael said at the time that the setback comes at a hefty price of about R10bn to taxpayers.
"The latest delay forecasts a shortfall of power supply in 2014 of 700MW and comes at an expected 15% price increase, pushing the cost of the project from R91bn to R105bn, an additional R10bn to taxpayers," she said in a statement.
Michael also called on Public Enterprises Minister Malusi Gigaba to take action, but he responded saying that no rash decisions will be taken.
Parliamentarians are also expected to visit the troubled plant where they will ask hard questions about ballooning costs and delays.
