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Fin24 report that Eskom has placed its acting head of security Karen Pillay on precautionary suspension. This is apparently related to a R500 million emergency security contract awarded to Fidelity Services to investigate coal theft last year.
According to senior Eskom sources, pressure came from the board to suspend Pillay. She continues to cooperate with a probe into the contract, according to the sources. The accusation is that Eskom did not follow proper procurement processes, but according to the power utility the contract was awarded in line with its procurement procedure and National Treasury directives for emergency procurement of services. Eskom said Fidelity was hired after its management received information about a potentially serious security risk to its operations and assets. While the initial contract price was R500 million, in the end the company paid only R250 million. Pillay joined Eskom in 2004 from the Special Investigating Unit. She started her career in the police.
- Read the original of the short report in the above regard by Lameez Omarjee at Fin24
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