Eskom’s procurement tender committee allegedly gave the green light for officials to negotiate prices and other details with a company for the supply of two imported trucks worth R31.5m after the validity period of the tender had expired.

However, notes a City Press report, the utility's officials then turned around two months later and said that they would no longer continue with the negotiations because the validity of the tender had expired.

Now Shandu’s Technical Services (STS) is suing Eskom for R5.6m in lost profit after Eskom’s officials began negotiations with STS on 26 June 2018, even though they knew that the tender had expired on 7 May.

Eskom spokesperson Sikonathi Mantshantsha said that STS was not entitled to the remedy it was demanding.

‘While the negotiations were still taking place, the Eskom process was stopped because it came to the attention of the negotiation team that the validity of the tender had expired. As such, it would not be regular to continue the procurement process. No contract was concluded,’ Mantshantsha said.

However, lawyer, Wawa Xaluva, warned that Eskom could be liable for STS’ costs if the company was not given a contract.

Xaluva gave his opinion to Eskom buyer Elias Mathabatha on 28 March 2019.

Mathabatha had told STS via email for the first time on 1 August 2018 that the validity period of the contract had expired.

‘In short,’ Xaluva said, ‘the bidder was strung along by Eskom with a promise of an award that never came. There is a risk if and when the bidder takes Eskom to court. The role players will be cross-examined and, by evidence before me, none paid attention to detail.’

Full City Press report