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Jabu Mabuza’s relative to benefit hugely from contracts with Eskom

Image Credit: Nomvula Mabuza FaceBook page

By BO Staff Writer

A company belonging to a relative of Jabu Mabuza, the former Eskom board chair, is currently in the final bidding process regarding a boiler tube maintenance contract for R11 billion with Eskom. To this end a possible conflict of interest situation was raised at Eskom before Jabu Mabuza’s resignation as the power utility’s chair. It is reported that no such conflict of interest situation was declared by either Jabu Mabuza or his relative.

Jabu Mabuza’s relative, Nomvula Mabuza, is said to own IDS Industry Service and Plant Construction Africa (IDS Africa) which was established shortly after the Eskom board was appointed in April 2018. IDS Africa is reported to be jointly bidding with American outfit General Electric (GE) for the boiler tube maintenance contract. Should they be successful in winning the contract IDS Africa stands to benefit 70% in respect of the contract.

Moreover IDS Africa is already in possession of a R100-million contract, which it was awarded in February last year. This is in relation to boiler tube maintenance at the Medupi power station. It will accordingly benefit from most of Eskom’s R50 billion that has been budgeted for maintenance – which in turn will be deployed towards maintenance of boiler tubes for the coming four years.

Andile Mngxitama, the President of Black First Land First (BLF), commented sharply on this issue.

“So Jabu Mabuza’s relative Nomvula stands to benefit from a R11 billion contract with Eskom and she already has another contract of R100 million through a company she established shortly after Jabu was appointed by Pravin Gordhan and confirmed a friend of Johann Rupert. If you still think that the fight against Zuma and the Guptas was about fighting corruption, you should be officially declared an imbecile semaumau; isthuphunga; setlaela. #PravinMustGoNow”, Mngxitama said.

In the meanwhile Eskom and Jabu Mabuza have  indicated that Jabu was not part of the processes in relation to both the pending contract and the contract relating to boiler tube maintenance at Medupi.

It is further reported that:

i. IDS Africa has 47 years plant engineering experience, according to its profile, yet it was established in April 2018;

ii. a whistle-blower has submitted a letter containing evidence to the State Capture Commission and the Public Enterprises Minister, against IDS Africa;

iii. the evidence in the letter includes fraud and corruption relating to tenders at Kusile and Medupi; and

iv. the letter also suggests that upon the tender being awarded at Medupi, IDS Africa had no employees and didn’t have the required experience – this suggests that the company could very well be a front.