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Oupa Lucas Teke
Managing Director and Project Manager
Castle Terminal Co., (Pty) Ltd
oupa.teke@gmail.com
+27 76 460 6327
To Mr Cyril Matamela Ramaphosa
President of the Republic South Africa
Head of the National Ex
Private Offic
Union Buildings,
Dear President Mr Ramaphosa,
27 September 2019
REQUEST FOR A MEETING WITH THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA MR
CYRIL RAMAPHOSA, Wl'JiH·REGARDS .TO THE MATTER THAT I AM SUBMITTING TO STATE
CAPTURE COMMISSION RELATING TO ESKQM NECJ ENGINEERING & CONSTRUCTION
CONTRACT N.
UMBER 4600025920·
1
··s~TWEEN 'ESKOM HOLDING LIMITED (REG NO.
2002/015527/06) AND CASTLE TERMINAL COMPANY (PTY) LTD (REG NO. 2008/027442/07) FOR
THE SUPPLY, DELIVERY AND INSTAL.
LATION.OF LIGHTING FIXTURES FOR TWO (2) FOSSIL
FIRED POWER STATIONS (ARNOT AND. GROOTVLEI) TO REALISE ENERGY EFFICIENCY
. . '.
SAVINGS AT THE POWER STATIONS DURING THE PERIOD 2011-01-03102011-02-15 WITH
REFERENCE TO ESKOM HOLDING LIMITED CAPTURE AND CORRUPTION WHICH INCLUDE
ESKOM GENERATION DIVISION, AURECON SOUTH AFRICA, VOLTEX LIGHTING AND BIDVEST
SOUTH AFRICA.
--------------------------~- ----------------------------------------
I, the undersigned, Oupa Lucas Teke, do hereby.state under oath that:
1. The purp f this letter i me~ting wi resident Mr Cyril Matamela
Ramaphosa, before I serve a notification th~t. I intend·making submission to the State Capture
Comm.ission of enquiry on the tenure in (~010 - 2011) of my company Castle Terminal Co, at
Eskom. My submission will implicate Aurecon South Africa, Voltex Lighting, Bidvest and the
Office of the Public Protector, Adv. Busisiwe Mkhwebane and Adv. Christoffel Fourie who is
managing the department of integrity and Governance in the office of the Public Protector.
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2. My President Mr Matamela Ramaphosa, was the Chairman of Bidvest, Mr Brian Joffe the Chief
Executive of Bidvest and Mr Stanley Green the Chief Executive of Voltex Lighting or Bidvest
Electrical and the late Professor Jakes Gerwel was the Chairman ofAurecon South Africa. When
Aurecon South Africa, Voltex Lighting and Bidvest flouted Section 217 (1) of the Constitution of
the Republic of South Africa, Act 108 of 1996, PFMA and Treasury regulations and Supply Chain
Management at Eskom in 2010 and 2011.
3. My company Castle Terminal Co., (Pty) Ltd was awarded NEC3 engineering and construction
contract number 4600025920 by Eskom Holding Limited to the total value of R10 990 086 VAT
inclusive. For the supply, delivery and installation of lighting fixtures for two (2) Fossil Fired
Power Stations (Arnot and Grootvlei) to realise energy efficiency saving at the power stations
during the period 2011 - 01- 03 to 2011 - 02- 15. Soliciting akey performance indicator: Areport
of performance against each key performance indicator is provided: .
a. Once the project has been implemer.ited savings was to be verified by the measurement
and verification team.
b. The following KPA's are to be achieved:
Station kW Savings GWh Savings
Arnot 289.93 2.12
Grootvlei 293.56 2.21
4. Aurecon South Africa in 2010 was awarded contract number 4600024744 dated 3 September
2010 by Eskom Holding Limited as part of the 15 Fossil Fired Power Station to conduct an
electricity efficiency review on the Eskom Generation Fleet Comprising of 15 Power Stations
known as: Arnot, Duvha, Hendrina, Kendal, Kriel, Lethabo, Majuba, Matimba, Matla, Tutuka,
Camden, Grootvlei, Drakensberg and Palmiet. Eskom Should Advise us on how much was paid
to Aurecon South Africa and Voltex Lighting and Bidvest for submitting Tainted or Flouted report
to Eskom Holdings Limited.
5. For preparing pre-tender audit and design report on behalf of Eskom Generation, specified in
proprietary specification or their trade mark. The pre-tender audit and design report, reproduced
tender GEN3135. Subsequently Aurecon South Africa and Voltex Lighting/Bidvest, tendered for
tender GEN3135.
6. Consequently, Eskom Holdings Limited on the 20th December 2010, unlawfully awarded Aurecon
South Africa and Voltex Lighting or Bidvest Electrical acontract from tender GEN3135 to supply,
deliver and install lighting fixtures for four (4) Fossil Fired Power Stations (Camden, Hendrina,
Tutuka and Komati) to reali.
se energy efficiency saving at the power stations during the period
2011-01-03 to 2011-02-15. Valued at R38 315 617.00.
7. The factual scenario outlined above drives one to a reasonable conclusion, namely that the
agreement was initially tailored for Aurecon South Africa and Voltex Lighting/Bidvest. The
engagement of Castle Terminal Co. was only asmokescreen from the inception.
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8. I Oupa Lucas Teke the founder, managing director and project manager representing a duly
incorporated company known as Castle Terminal Co. (Pty) Ltd with Registration number
2008/027442/07.
9. Look forward to addressing awide range of issues: including but not limited to the origins of the
crisis engulfing Eskom Holdings Limited, unlawful termination of Castle Terminal Co contract
number 4600025920 dated 24 February 2011, Eskom Bid specification committee, Bid
evaluation committee and bid adjudication committee, Eskom Chief Engineer Mr Shanil Narain
Singh, Eskom Project manager Mr Logan Reddy, Eskom Project Supervisor Mr Shanil Narain
Singh, Eskom Negotiation specialist Mr Themba Sibanyoni. Eskom Chairperson of the weekly
meeting Mr Ronny Khumalo, Eskom Senior Manager Commercial Generation Department Mr P
du Toit, Eskom Commercial Generation representative Ms Matsebela Mosoatsi, Mr Thulani
Mdakane, Eskom Finance Generation representative Mr Philip van Niekerk, Eskom Generation
Technical representative Mr Shanil Narain s·ngh, Eskom Senior Legal Advisor: Regulations and
Governance Mr Liwalam Jafta and Eskom Group CEO &Accounting Officer Mr Brian Dames for
failing to practice Eskom's Policies and procedures, Eskom Governance and Ethics, by flouting
of Section 217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996, which
provides that:
a. When an organ of state in the national, provincial or any other institution identified in the
national legislation contracts for goods or services, it must do so in accordance with the
system which is fair, equitable, transparent, competitive and cost effective.
. . b. Reference is also made to, section 3(1). of the Public Finance Management Act of 1999
I
(hereinafter referred to as PFMA) read with Schedule 2thereto which provides that the
latter Act is applicable to Eskom. Your attention is also drawn to paragraph 16 of the
National Treasury Regulations dealing with Supply Chain Management and issued
during March 2005 in terms of Section 76 of the PFMA.
10. My interpretation of the above -quoted legal frame work is that Eskom is bound by the provision
of Section 217 (1) of the Constitution of South Africa, PFMA, Treasury regulation and Supply
Chain Management.
11. It is clear that Aurecon South Africa, Voltex Lighting and Bidvest worked together with Eskom
Holdings Limited representatives in activities of corruption and capturing of Eskom. When
Aurecon South Africa was contracted to conduct an electricity efficiency review on the Eskom
Generation Fleet comprising of 15· Power Stations. Contract number 4600024744 dated 3
September 2010.
12. The Executive summary of contract number4600024744 fluently describe the methodology, time
and cost associated with Eskom Energy Services for aNational Generation Energy Audit.
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13. This report covers the audit,design and the results for Grootvlei Power Stations. The audit results
indicated a saving of 0.5 MW (3,3 GWh p.a.) at a total cost of R26 million. Lighting was by far
the most cost-effective area for savings in terms of payback with a potential 293 Kw (2.2 GW
p.a.) of savings at acost of R4.6 million, followed by water and then HVAC (Heat Ventilation Air
Condition). Potential energy efficiency saving of 42% for lighting, 33% for HVAC and 67% for
water were identified. Regarded as one project divided into two (2):
a) Aurecon South Africa performed a detailed audit and design of Heat Ventilation Air
Condition (HVAC) and Domestic water heating.
b) Voltex Lighting &Bidvest South Africa performed adetailed lighting audit and design.
14. The Project Organization,Organogram:directly involved in the execution of this plan is as shown
below:
Eskom Generation
Aurecon (Pty) Ltd
Voltex Lighting/Bidvest
Audit team
Design team
Owner of the project
Contracted
Subcontracted
(Voltex Lighting, Bidvest/ Aurecon)
(Voltex Lighting, Bidvest /Aurecon)
15. Eskom Generation required a national generation energy audit and detailed design to be
conducted for all 15 designated Eskom generation facilities nationally.The focus was specifically
on auxiliary station load.The project goal was to produce designs that will result in an electrical
saving in excessive of 15% per site on non-essential loads.
16. The section that provides asummary of the information are contained within Schedule Aand B,
namely the HVAC, Water and Lighting audit & design results data that can be acquired in the
Eskom pre-tender audit and design report document.
17. Feedback Report on the HVAC &Domestic Hotwater energy audit is as follows:
a. Aurecon South Africa: was under the Chairmanship of Prof Jakes Gerwel
b. Reference : 105985
Date : September 2010 ·
Author : Mr HL Townsend
Date of submission : 1September 2010
Prepared for :Eskom
Prepared by :Aurecon
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Contact Person
Telephone
E-mail
18. Roles and Responsibilities:
Tshwane Office: Aurecon Centre, 1040 Burnett Street, Hatfield,
Tshwane, South Africa,
: Mr Henry Townsend
: (012) 427 2384
: henry.townsend@af.aurecongroup.com
(a) Aurecon was providing a lead consulting, quality assurance and project
management role.
(b) Aurecon was doing the Heat Ventilation and Air Conditioning (HVAC) and Water
Heating Audits and design.
(c) Whilst Voltex Lighting/Bidvest was.appointed as asubcontractor for the Lighting and
Occupational Sensors switching audit and design.
(d) Aurecon has established the audit and design criteria in association with the Eskom
representative and Voltex Lighting/Bidvest.
(e) Aurecon was managing the progress and quality aspect of the project. Aurecon was
providing the interface with the client as well as the quality assurance functions.
19. Role and Responsibilities of Voltex Lighting/Bidvest Project Report Grootvlei Power Station:
(a) Voltex Lighting/Bidvest conducted a detailed lighting audit from 3rd August 2010 to 5th
August 2010 at Grootvlei Power Station ·which is situated close to Balfour in the
Mpumalanga Province.
(b) The audit was done on behalf of Aurecon South Africa who in turn was contracted to
Eskom Generation Division.
(c) The audit covered all areas of the power station except for perimeters and floodlighting.
The project was to replace inefficient lamps and fittings with state-of-the-art modern
equipment which would contribute to substantial gains in energy efficiency. In addition,
occupancy sensors would be incorporated into various areas to further increase the
energy savings.
(d) The audit team was accompanied by Eskom personnel throughout the Audit.
20. Voltex, Voltex Lighting Reg No. 1964/006740/07 is also known as Bidvest Electrical a leading
distributor of electrical products and services in South Africa.
21. Aurecon South Africa subcontracted Voltex Lighting/Bidvest South Africa as follows:
a) Chief Executive officer Voltex: Mr Stanley Green
b) Voltex Lighting, Registration Number: 1964/006740/07.
c) A member of the Bidvest Group: L.f)
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i. St. Andrews Office Park, Block C, 39 Wordsworth Avenue, Sender wood,
Johannesburg, 2007.
ii. P.O. BOX 16881, Doornfontein, 2028, South Africa.
iii. Telephone: (011) 879 2500
iv. Email: www.voltexlighting.co.za
22. Role and Responsibilities of Bidvest:
a. Operational review notes that the Bidvest Corporate role to Voltex lighting or Bidvest
Electrical is to provides strategic direction, financial, risk and sustainability management,
marketing, investor, relations, corporate finance, corporate communications, house
investments and provides Executive training to the Group.
b. Operational review notes that Bidvest Adds value by identifying opportunities and
implementing Bidvest's decentralised entrepreneurial business model: under Mr Brian
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Joffe Chief Executive: earned a Revenue R683,2 million with 6,5% decrease, and
trading profit R140,3million with 9,1%increase. (2010 - 2011)
c. Operational review notes that Bidvest South Africa, realignment into 10 focused divisions
was successfully implemented.It has to be noted that Voltex Lighting or Voltex or Bidvest
Electrical came into existence as part of the 10 focused divisions that was successfully
implemented. Performance was mixed, reflecting a patchy, hesitant recovery and
ongoing weak demand in construction and hospitality. Freight and Rental performed
strongly, Travel staged a good recovery, Automotive optimised opportunities and
paperplus and servives coped well. Banking operations showed good growth. All teams
showed resilience, driving revenue 14,0% higher to R59,0 billion (2010: R51,8 million),
while trading profit reached R 3, 4 billion (2010: R3, 1 billion), the division includes a
variety of service and product offerings across South Africa. Under Mr Lindsay Ralphs
Chief executive: earned aRevenue R59,0 billion with 14,0% increase, and trading profit
of R3,4 billion with 10,4% increase. (2010 - 2011 ).
d. Operational review notes that Bidvest Electrical known as Voltex Lighting: A leading
manufacturer and distributorof electrical products and services under Mr Stanley Green
Chief executive: earned aRevenue of R4.1 billion with 3,1%increase and trading profit
of R181,8 million with 6,2% decrease. (2010 - 2011)
23. To my surprise Voltex lighting and Bidvest part of their earned Revenue of R4.1billion and part
of their trading Profit of R181.8 million was made out of being subcontracted by Aurecon South
Africa to a project which belong and initiated by them. Since it is clearly confirmed by Voltex
Lighting that the on-going energy crisis has been along time coming, as it was in 2002, that we
at VOLTEX LIGHTING began to prepare for what we saw as the in-inventible in terms of
electricity capacity. We formed our Energy Service Division, where the task was to concentrate
on energy efficiency solutions that could be achieved through the introduction of the latest
technologies in lighting.During the last three years we have established ourselves as the leading
lighting ESCO (Energy Service Company) as part of the Eskom DSM initiative, and are currently
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involved in projects that will save 40 Megawatts in power on an annualized basis.This Cataloque
bears testimony to our commitment to only offer energy saving products and services to the
South African and world markets. Voltex Lighting, winner of the ETA award in the Industrial
Sector for its exceptional contribution to the National Energy Efficiency Programme. Endorsed
by the Department of Minerals and Energy, and Eskom.
24. Studying from Sixth Edition Construction Specification Writing Principles and Procedures
authored by Harold J. Rosen, Mark Kalin, Robert S. Weygant, John R. Regener, Jr, it has to be
known that, Aurecon South Africa and subcontractor Voltex Lighting/Bidvest as a subject
matter expert, had to understand that there are four methods of writing specification as exposed
below, when they were preparing Eskom Generation pre-tender audit and design report, and
they fully comprehended that Section 217 (1) of the Constitutions of the Republic of South Africa,
Act 108 of 1996, PFMA and Treasury regulations and Supply Chain Management uphold to
Reference Standard Specifying method.
25. Four method of writing specification as exposed below are as follows:
a) Descriptive Specifying: Under this method, exact properties of materials and methods of
installation are described in detail without using proprietary names (manufacturers' trade
names).
b) Reference Standard Specifying: Under this method, reference is made to established
standards to which the specified products and processes shall comply or conform.
c) Proprietary Specifying: Under this method, actual brand names, model numbers, and other
proprietary information are specified
d) Performance Specifying: Under this method, required results are specified and the criteria
are specified by which the performance will be verified. The Contractor is free to provide any
material complying with the performance criteria.
26. Aurecon South Africa is managing the progress and quality aspects of the project, and providing
the interface with Eskom Generation as well as the quality assurance functions jointly with Voltex
Lighting/Bidvest specified Proprietary Specifying methods when they were establishing
auditing and designing criteria in associatio.
nwith Eskom representative.
27. The method of specifying used by Aurecon South Africa together with Voltex Lighting/Bidvest
known as Proprietary Specifications had several disadvantages and it was against section 217
(1) of the Constitution of the Republic of South Africa, Act 108 of 1996, PFMA and Treasury
regulations and Supply Chain Management as follows:
Disadvantages ofProprietary Specifications:
a) Reduces or eliminates competition
b) May require products with which the Contractor has had little or poor experience
c) Favours certain products and manufacturers over others.
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28. The facts above clearly illustrate that both pre-tender audit and design report and tender 3135
project, in question, was conducted in a very contravention of the spirit of competitiveness to
extent that Castle Terminal Co., was concerned and in contravention of the principles in Section
217 (1) of the Constitution of the Republic of South Africa:
29. The relevant section ofthe Constitution was honoured more in the breach regarding the five tenet
and precepts of procurement in organs of state. The specifications in the tender document were
in contravention of the entrenched rule of procurement which provides that they must be
described in terms of performance required rather than descriptive characteristics for design.
Specifications should not create trade barriers in contract requirements in the form of
specifications, plans, drawings, designs, testing and test methods, packaging, marking or
labelling or conformity certification.
30. Rules of procurement provides that specifications may not make reference to any particular trade
mark, proprietary specification, name, sp~cific origin or producer unless there is no other
sufficiently precise or intelligible way of describing the characteristics of the work, in which case
such reference must be accompanied by the words "equivalent" suitable and unbiased
specification reference should be compiled for the particular requirement with proper terms of
reference which should not be company names or brands. In this instance Eskom "murdered
competition by insisting on aparticular material branded by aparticular company.
31. Procurement practice provides that provisions relating to drafting of specifications should
generally ensure fair treatment of bidders and competition that is sufficiently wide. Slanted
specifications would clearly defeat fairness, transparency and competition and the use of trade
names may unnecessarily limit ·competition. It is important to guard against bias and any
appearance of bias in the bidding process.
32. Bidders are required to declare any conflict of interest they may have in the transaction, for which
the bid is submitted, and to declare whether they or certain persons linked to them are or have
been in the service of the organ of state serving the same purpose. In this instance. Bid
documentation must require bidders to declare any conflict of interest they may have in the
transaction for which the bid is submitted.
33. To my opinion the alleged injunction by Minister of Public Enterprise, the Honourable Mr M
Gigaba (MP), that the project be finalised on the 15 February 2011 as mentioned by Eskom
Project Manager Mr Logan Reddy and Eskom P'roject Supervisor Mr Shanil Narain Singh on the
17 January 2011 meeting held at Eskom College, is only a feeble attempt by Eskom to have
unspent budget spent within the financial year. Such a feeble attempt is termed "physical
dumping" in financial parlance.
34. Logic informed me that Aurecon South Africa together with Voltex Lighting/Bidvest overlooked
or flouted or contravened Eskom Holdings Limited's Standard Conditions of Tender April 2008
page 3 clause 5 Standardised specification and other publications, Section 217 (1) of the
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Constitutions of the Republic of South Africa, PFMA, Treasury regulations and Supply Chain
Management because they recommend Reference Standard Specification.
35. The Pre - tender audit and design report produced by Aurecon South Africa, Voltex Lighting and
Bidvest written in proprietary specification was submitted to Eskom Holdings Limited Bid
specification committee, bid evaluation committee and bid adjudication committee. The Pre
tender audit and design report was unlawful or tainted or against section 217 (1) of the
Constitution of South Africa, PFMA, Treasury regulations and supply Chain Management when
it was submitted to Eskom. Nonetheless, Eskom Bid specification committee, bid evaluation
committee and bid adjudication committee accepted the Pre tender audit and design report dated
3 September 2010 contract number 4600024744 without query. Tender GEN 3135 was
reproduced from the Pre-tender audit and design report.
36. Castle Terminal Co. was invited by Ms Matsebela Mosoatsi on behalf of Eskom Holdings Limited
dated 23 November 2010, to tender for the s~pply and installation of light fixtures for six (6) Fossil
Fired Power Stations (Arnot, Camden, Grootvlei, Hendrina, Tutuka and Komati) to realise energy
efficiency savings at the Power Stations during the period 2011 - 01 - 01 to 2011 - 02 - 15. The
deadline for tender submission was around 10:00 hours on 2010 -12 - 03.
37. The scope of the tender project includes, storage of new and old fittings, the save disposal of all
redundant items, all miscellaneous material, costs and all labour associated with implementation
or replacement of the items contained within the Bill of quantities. The invited service providers
or contractors were also expected to provide ·proof of adherence to SANS lumen level by
providing lux samples after installation.
38. On or about 03 December 2010 Castle Terminal Co duly tendered to render services as
prescribed in the above - mentioned Tender Document GEN3135 as summarised herein above.
It is worthy to note that the recommendations of the pre tender audit and design prescribed the
installation of specified electrical products which are solely supplied by Voltex Lighting/Bidvest,
at least in South Africa. As Castle Terminal was aware of this, it tendered using the price list of
the electrical material from AC/DC (hereinafter referred to as AC/DC) as proposed material.
39. The letter confirming that the AC/DC proposed material will be used for the required services
was attached to Castle Terminal Co tender documents that were delivered on the 03 December
2010. This means that the Castle Terminal Co tendered on the strength of the fact that it was to
use electrical material other than the one provided by Voltex Lighting/Bidvest.
40. On the 19th December 2010, Castle Terminal was invited by Eskom to attend a meeting which
was scheduled to be held at Megawatt Park on 20 December 2010. Castle Terminal obliged to
the request, and Mr OL Teke on its behalf duly attended the meeting. In the said meeting, Castle
Terminal was informed that its bid to render services was successful in respect of two power
stations, namely Grootvlei and Arnot. Further, Eskom, requested a discount of R1 393 473.96
on the pricing tendered by Castle Terminal Co. en
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41. It should be mentioned that it became apparent that Eskom did not base the requested discount
on any calculation and the Bill of Quantities did r:iot entail request for discount. The basis of this
assertion is premised on the response received after Castle Terminal Co inquired on how the
requested discount was arrived at, namely that Castle Terminal Co may distribute the requested
discount of R1 393 473.96 at their discretion and as they deem fit and appropriate. Castle
Terminal acceded to the request for discount, since it was the instruction given by Mr Shanil
Narain Singh the Eskom Technical representative, Chief Engineer and or Eskom Project
Supervisor.
42. Castle Terminal was later provided with acopy of the proceedings of the said meeting which is
attached hereto as Annexure "B". The abovementioned minutes were signed by Mr. OL Teke,
of Castle Terminal on the 21 December 2010. Castle Terminal agrees with the contents of the
said meeting except that the discussion and agreement about the discount of R1 393 473.96
million was omitted. ASchedule of Deviation to be completed by the Employer prior to contract
award responding to the letter attached to Tender GEN 3135 document when delivered at Eskom
on the 3rd December 2010 was also omitted."
43. Notice of Acceptance or the preliminary construction agreement was also signed on the 21
December 2011 . Copy of the said preliminary agreement is attached hereto and marked
Annexure "C". As indicated above, the discounted amount of R1.393473.96 was not reflected
in the preliminary agreement. ASchedule of Deviation to be completed by the Employer prior to
contract award responding to the letter attached to Tender GEN 3135 document when delivered
at Eskom on the 3rd December 2010 was also omitted. Castle Terminal did not deem it necessary
to raise the issue of the R1 393 473.96 million discount regardless of its commercial importance.
44. The Policy and Procedure described by Eskom Holdings Limited's Standard Condition of Tender
April 2008 under Eskom's undertakings clause 21 issuing offinal contract: Issue the final contract
documents to the successful tenderer for acceptance within 1(one) week of the date of Eskom's
notice of acceptance. Mr Pdu Tait Senior Manager Commercial Generation department signed
the Notice of Acceptance on the 21st December 2010. Following Notice of Acceptance, I was
expecting to receive a complete signed final contract on the 30th December 2010. But to my
surprise the final contract was signed by Mr P du Tait and received on the 14 January 2011.
While the Notice of Acceptance outlined clearly that the contract starting date is 2011-01-03 to
2011-02-15.
45. In pursuit of the Notice of Acceptance or preliminary agreement Castle Terminal Co carried out
a site inspection at both Grootvlei and Arnot Power Station on the 31 December 2010. This
inspection was geared towards preparing accommodation for the workers and also personally
experiencing the site and what was required to be done. On the 3-5 January 2011, Castle
Terminal made further arrangements for its employees to be inducted and to attend medical
check-up. Thereafter the Eskom Power Station Project Leader Mr B N Mkhize with unique
number 4271576 ensured that they receive the access cards. It was during these visits that
Castle Terminal Co requested, and was furnished with, the copies of the pre-tender audit and
design report. A copy of the said pre-tender audit and design report is attached hereto as
Annexure "C".
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46. Perusal of the pre-tender audit report yielded information that Aurecon South Africa & Voltex
Lighting/ Bidvest was involved in no small degree in the pre-tender audit process. Suffice it to
state that Aurecon South Africa and Voltex Lighting/Bidvest was the chief author of the pre-tender
audit and design report on the basis of which the tender was issued. That Aurecon South Africa
and Voltex Lighting/Bidvest also tendered to render the services it recommended, and
consequently was awarded the bulk of the tender is common cause. and that is, effectively
Aurecon South Africa and Voltex Lighting/Bidvest compiled the pre-tender audit in which it
recommended certain services that it can render and proceeded to 'successfully' tender for those
services.
47. Of significance is that it was at that stage when the pre-tender audit report was furnished when
Castle Terminal Co came to the realisation of the relevance and importance of Voltex
Lighting/Bidvest material as they are strictly specified in the pre-tender audit and design report
and Bill of Quantities. It has to be noted in parenthesis that at the time when the tender
documents were submitted, the pre-tender audit report and the scope of the specifications in the
Bill of Quantities were not availed to Castle Terminal Co, hence the belated realisation.
48. This raised a suspicion that the preferred service providers might be strictly required to use the
material solely provided by Aurecon South Africa and Voltex Lighting/Bidvest, notwithstanding
the fact that other similar material available at other electrical suppliers could produce the same
or better output. As this suspicion, could not be left to chance, Castle Terminal Co made a
decision that clarity should be sought from Eskom in a properly constituted meeting at the first
available opportunity so that it can be formally discussed. This opportunity presented itself only
on 14 January 2011 when this matter was discussed. Before one can traverse deeply into the
discussion pertaining to this, it is deemed better to continue chronicling the events so as not to
disturb the sequence which thus f;:ir has characterised the contents of this correspondence. The
picture will become conspicuously evident in the chronology.
49. On the 12th January 2011, Oupa Teke of Castle Terminal Co signed a final construction
agreement between Eskom and Castle Terminal Co. He did this in the absence of Eskom. Eskom
management countersigned only on 14 January 2011, at Eskom Headquarters in absence of
Castle Terminal Co, like in the Notice of Acceptance the final contract provides that the period of
the contract is from 3rd January 2011 to 15 February 2011 . Eskom purposely delayed the
submission of the final contract to Castle Terminal because Eskom particularly Mr Pdu Tait was
aware that the final contract comes into effect on the date when the tenderer receives one fully
completed original copy of contract number 4600025920 including the Schedule of Deviations (if
any) but Schedule of Deviations was omitted purposefully.
50. Castle Terminal Co could not deliver its proposed material in Both Arnot and Grootvlei fossil
fired power stations since Eskom Schedule of Deviations was not completed by the Employer.
Following Eskom Holdings Limited's Standard Conditions of Tender April 2008 under General
clause 5 Communication: it states that each communication between Eskom and Tenderer shall
be to or from the Eskom Representative only, in writing, and in aform that can be read, copied
and recorded. For this Purpose, in writing means means hand written, type written printed or
electronically made and resulting in apermanent record.
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51. It was an implied condition of the agreement with Eskom that the preferred service providers will
hold weekly safety and quality control meetings (hereinafter referred to as Weekly Project
Meetings). Thus, for the duration of the tender, the progress meetings have to be held on weekly
basis, whereat safety and quality control matters relating to the project and other matters
incidentals thereto are to be discussed. Quality control matters include matters such as the
national standards, the type of material to be used, and compliance of the project with project
lines.
52. The first of such meeting was held at Eskom Grootvlei boardroom, 1st floor, Smokey mountain
Offices in Witbank, Mpumalanga Province. Witbank, on the 14 January 2011, time 9:00 -12:00
Castle Terminal Co., and Voltex Lighting/Bidvest attended the said Weekly Project Meeting. It
was in this meeting that Castle Terminal Co., was favoured with an opportunity to raise its
Dispute. .
53. Subsequently meetings regarding my di were held dated 17 January 2011 at Eskom
I
College Midrand reception between myself and Eskom Project Manager Logan Reddy and
Eskom Project Supervisor Shani! Narain Singh, 20 January 2011 at Acacia Boardroom Megawatt
Park Sunninghill between myself and Eskom negotiation specialist Mr Themba Sebanyoni,
Eskom Commercial A. Keyser and Eskom Project Manager Logan Reddy.
54. Funny enough that the minutes of the meeting dated 20 January 2011 was signed by Chief
Engineer Mr Shanil Narain Singh even though he was not part of the meeting, it was expected
that the minutes of the meeting should have been signed by the Eskom Negotiating specialist Mr
Themba Sibanyoni as introduced; who was chairing the meeting. The question is why did Chief
Engineer Mr Shanil Narain Singh signed for the minutes of the meeting he was not formulating
part of or he did not attend?
55. After a long process of Eskom being defiant, abusing their powers, being unfair and
uncompetitive in the discussions regarding my Dispute. On the 8February 2011 Castle Terminal
Co., submitted an Official Complain background to the Eskom Project Manager Logan Reddy
and on the 11 February 2011 Castle Terminal Co., submitted the very same complain
background to the accounting officer, the Group CEO Brian Dames.
56. Eskom fibbed or lied in their response letter dated the 11 February 2011 written by Mr Liwalam
Jafta, Senior Legal Advisor; Regulations and Governance, that both discount of R1.393473.96
and Schedule of Deviation to be completed by the employer were included or written in the
minutes of the negotiation meeting dated the 20th December 2010, and finally in contract number
4600025920.
57. Eskom failed to report the matter to independent Adjudicator, Eskom in full swing investigated
themselves of which it was unethical and against the Notice of Acceptance signed by Mr Pdu
Tait. Clause 8 Adjudicator: which confirmed that the Adjudicator for this contract will be
appointed when disputes arises.
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58. Subsequently, On February 2011, I reported the matter to the office of the Public Protector and
my complaint was allocated aref no. 7/2-35784/2011. My Complaint was referred to integrity and
Governance department under Adv. Christoffel Fourie. Whom I find him to be corrupt. I was
informed by Mr Paul Tjale that he must stop investigating my matter since it was not serious.
Hence this matter took 8 years. The office of the Public Protector was partial during the
investigation of my complaint.
59. To my knowledge anyone can complain to the Public Protector. I also regarded the Public
Protector as areferee who ca can look at all sides of aproblem. Once the Public Protector finds
that the complaint is justified, she will do whatever possible to find solution to the problem. The
Public Protector has four (4) method of investigating the complaints: a) Public Protector can
report the matter to Parliament, which will debate the matter and see to it that the proper remedial
action is followed. b) Investigations are mostly done informally. c) Public Protector can summon
people to give evidence under oath or affirmation when it become necessary. d) Public Protector
has search and seizure powers. •.
60. An informal investigation method was used to investigate my case. The Public Protector in this
instance failed to investigate my matter in time, failed to be impartial, failed to protect Section
217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996. When Eskom,
Aurecon South Africa, Voltex Lighting and Bidvest flouted Section 217 (1) of the Constitution,
PFMA, Treasury regulation and Supply Chain Management.
61. It is aduty ofthe Public Protector to investigate conduct in government, at any level. This includes
national, provincial and local government, and state-owned enterprises. The Public Protector
investigates maladministration, including improper prejudice suffered by the complainant or
another person, as a result of: Abuse of power, unfair, capricious, discourteous or other
improper conduct. Undue delay, any other cause brought about, or decision taken by the
authorities also fall within the Public Protector's jurisdiction.
62. The Public Protector also deals with power to investigate dishonesty or improper dealings
with respect to public money, improper enrichment and receipt of improper advantage. The
Public Protector also investigates corruption and alleged ethical lapses of members of the
executive such as President, Deputy President, Ministers, Deputy Ministers, Premiers and
MEC's. the Public Protector further has the power to resolve information access disputes; to
receive protected disclosures from whistle-blowers and to protect them; and to review the
decisions of the National Home Builders Registration Council.
63. Any person performing a public function can be investigated by the Public Protector. This
includes anyone performing any official duty which affects all, or part of, the people of the South
Africa such as employees of the state like a policeman or electoral officer. Corporations or
companies where the state is involved such as Eskom and Telkom can also be investigated by
the Public Protector. Statutory councils such as the Human Sciences Research Council and the
Council for Scientific and Industrial Research' also fall under the jurisdiction of the Public
Protector.
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64. Castle Terminal Co. discovered that it was improperly prejudiced by Eskom Holdings Limited,
when Eskom was abusing its power by protecting unlawful conduct by Aurecon South Africa,
Voltex Lighting and Bidvest. For writing pre-tender audit and design report. subsequently Eskom
permitted Aurecon South Africa, Voltex Lighting and Bidvest to tender for tender GEN3135
written by them. On the 20th December 2010 Eskom awarded them four main Fossil Fired Power
Station known as (Camden, Hendrina, Tutuka, and Komati) with the aim of allowing them later
to supply spares and replacements.
65. Taking from the facts contained in both tender GEN3135 and Pre-tender audit and design report
dated 3September 2010 contract number 4600024744. Neatly illustrated to me that the Existing
product specified was written in Voltex Lighting /Bidvest proprietary specifications and the
Proposed product where also written in Voltex Lighting/Bidvest proprietary specification. Both
Pre-tender audit and design report and Tender GEN3135 confirmed that Aurecon South Africa
and Voltex Lighting /Bidvest was the suppli~r, deliver and installer of the Existing Product as
illustrated in both Pre tender audit and design report and Tender GEN3135. And that means from
2003 to 2009 Voltex Lighting and Bidvest audited, designed, supplied, delivered and installed
energy efficiency lighting mentioned as Existing Products written in their trade names or
proprietary specification as revealed in both Tender GEN3135 and Pre-tender audit and design
report date 3 September 2010 contract number 4600024744.
66. Consequently, the Existing product written in both Tender GEN3135 and Pre tender audit and
design report specified in Voltex Lighting/Bidvest trade mark or proprietary specifications remain
confirming that for the past seven (7) years Voltex Lighting/Bidvest was the only supplier, deliver
and installer of energy efficiency lighting at Eskom. The difference this time in 2010 is that Voltex
Lighting/Bidvest were trying to hide their corruption with Eskom by Subcontracting underAurecon
South Africa, but still Auditing, designing the pre tender report, reproduce tender GEN3135,
tender, to be awarded the tender to also supply, deliver and install and later replace parts. The
above-mentioned statement illustrates aproper Capture of Eskom Holdings Limited by Aurecon
South Africa and Voltex Lighting/bidvest.
67. Eskom bid specification committee, bid evaluation committee and bid adjudication committee
recognized that proprietary specification is unlawful or flouting section 217 (1) of the constitution
of the Republic of South Africa but they ignored the wrong doing by accepting tainted pre-tender
audit and design report and continue to reproduce tender GEN3135.
68. Castle Terminal Co., followed the Public Protector procedure of submitting information contained
in the complaint letter as follows; a) The nature of the complaint, b) Background and history of
the complaint, c) The reasons why Castle Terminal felt the complaint should be investigated by
the Public Protector, d) The steps Castle Terminal Co., have taken to solve the problem, Castle
Terminal Co., mentioned names, dates, and what was said. Copies of correspondence between
Public Protector officials and Castle terminal Co., were attached to the letter of complaint. The
matter was reported within two months in February 2011 not within two years as prescribed by
the law.
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69. Public Protector did not obey Procedural Fairness, the procedure that government follows in
making an administrative decision must fair (Procedural fairness). If there is aset of established
rules that the government must follow in coming to the decision then these must be followed
oth~rwise the decision can be challenged. However, the common law rule - audi alteram partem
rule - is one rule that the government must always follow in making a decision. This rule says
that aperson whose rights are or may be affected by an administrative decision must be allowed
to state his or her concerns before the decision is made.
70. In one meeting that I had with Adv. Busisiwe Mkhwebane dated the 6TH July 2017, time 14:00
PM, Idiscovered that she can be very emotional, she precisely and arrogantly informed me that
she will never grant me common law rule - audi alteram partem rule - she mentioned that since
she is representing me or Castle Terminal Co., she will make decisions on my behalf, she will
never grant me access to the document as prescribed by the Constitution. She also promised to
charge me for telling her that she is protectiQg Corruption conducted by Eskom, Aurecon South
Africa, Voltex Lighting/Bidvest. Adv. Busisiwe Mkhwebane just walked out of the meeting angrily
so. I was surprised by what I term misbehaviour conduct by the Public Protector. Our meeting
was officially recorded, when the meeting abruptly adjourned, I requested the audio recordings,
and I was permitted to have the copy of the audi recordings dated the 6th July 2017.
71. Public Protector failed to investigate Aurecon South Africa, Voltex Lighting/Bidvest and Eskom
for flouting of Section 217 (1) of the Constitutior, of the Republic of South Africa. following the
fact that the Public Protector is given the Powers to investigate Corporations or companies where
the state is involved such Eskom. She did not give a remedial action towards Aurecon South
Africa, Voltex Lighting and Bidvest for submitting pre-tender audit and design report dated 3
September 2010 contract number 4600024744 written in Voltex lighting or bidvest electrical trade
marks or proprietary specifications. Which later reproduced tender GEN3135 also written or
specified in Voltex Lighting or Bidvest Electrical trade mark or proprietary specification.
72. The Constitutional Court has ruled that any procurement process tainted by unlawfulness must
be declared unlawful by court. Once this is done, the courts must consider what a just and
equitable order would be.
73. Through Public Protector, I thought my rights to have access to information (Section 32 of the
Constitution) held by the state or Public Protectors office, will help me to exercise my rights, and
remained to be provided to my person. But the Public Protector took those rights away from me.
Subsequently my rights to just administrative action (Section 33 of the Constitution of the
Republic of South Africa) were also taken away from me, I also expected to be given reasons
why Castle Terminal Co., Contract number 4600025920 was terminated unlawfully by Eskom,
on the letter dated 24 February 2011.
74. Eskom only submitted the final contract signed by Mr Pdu Tait, on the 14 January 2011, when
the contract started on the 3rd January 2011. Of which it was against notice of acceptance dated
21 December 2010. That stipulate that once the Notice of Acceptance is signed one (1) week
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later Castle Terminal Co, was to be given the Final contract. Eskom was projected to supply final
contract on the 30 December 2010. Eskom failed to do so. The Public Protector ignored those
facts in her ruling.
75. Eskom failed to respond to the letter that was attached to the tender document when tender
GEN3135 was delivered to Eskom on 3rd December 2010. Eskom omitted to include deviation of
material in the final contract as prescribed by the Contract. Eskom unlawfully deducted an
amount of R1 393 473.96 million in my contract when bill of quantities did not mention anything
about discount.
76. Public Protector Adv. Busisiwe Mkhwebane and Adv Stoffel Fourie appeared to be incompetent
in the manner in which they investigated my complain and the manner in which remedial action
was given. I could not review the matter in Court since I did not have the financial muscle to do
so. And that is one of the reasons why it is in my interest to submit my case before the state
capture commission.
77. The Public Protector was supposed to verify if the Pre-tender audit and design report submitted
to Eskom by Aurecon South Africa and Voltex Lighting/Bidvest, if it was written in the manner
that satisfy Section 217 (1) of the Constitution of the Republic of South Africa and secondly check
if Tender GEN3135 was also written in the manner that satisfy Section 217 (1) of the Constitution
of the Republic of South Africa, not forgetting all other misconduct by Eskom representatives for
failing to abide by their policies and procedures.
78. Eskom Failed to report the dispute reported by Castle Terminal Co. to the independent
Adjudicator following Notice of AGceptance clause 8 signed for by Mr Pdu Tait: Eskom Senior
Manager Commercial, confirming that the Adjudicator for this contract will be appointed when
dispute arises. The Public Protector failed to make aruling on the fact given.
79. Bid specification committee, bid evaluation committee and bid adjudication committee including
Eskom Chief Engineer Mr Shani! Narain Singh, Eskom Project Manager Mr Logan Reddy and
Eskom Supervisor Mr Shanil Narain Singh comprising the accounting officer or Group CEO Mr
Brian Dames failed Section 217 (1) of the Constitution of the Republic of South Africa. PFMA,
Treasury regulations and Supply Chain Management. The Public Protector failed and ignored to
make a ruling on Eskom representatives, she conversed that Mr Thulani Mdakane was charged
so Ishould be happy.
80. Shockingly Eskom denied Castle Terminal Co. an opportunity to use proposed material following
the letter dated 2nd December 2010 attached to the tender document delivered to Eskom on 3nd
December 2010. Eskom awarded Castle Terminal Co., contract number 4600025920 without
including deviation of material as mentioned by Castle Terminal Co., in the letter attached to the
tender document. Knowing very well that Castle Terminal Co., was supposed to use proposed
material. Eskom denied Castle Terminal Co., by not responding or permitting Castle Terminal in
writing to use proposed material as required following Eskom Standard condition of tender April
2008, Eskom also denied Castle Terminal extension of time, since Eskom signed and submitted
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final contract number 4600025920 on the 14 January 2011. While it was supposed to sign and
submit the final contract on the 30th December 2010.
81. In contrast Eskom extended Voltex Lighting and Bidvest 8 months later dated 5 October 2011:
Installation of energy efficient light (Ref No. H00102NM/2011) Hendrina Power Stations. While
Aurecon South Africa and Voltex Lighting/Bidvest was supposed to have completed four awarded
power stations (HENDRINA, CAMDEN, TUTUKA AND KOMATI} on the 15 February 2011.
Public Protector ignored or failed to make aruling on the facts given above.
82. Castle Terminal experienced problems regarding the supply, delivery and installation of lighting
fixtures at two Fossil Fired Power Station known as Arnot and Grootvlei to provide their
contracted services due to unreasonable barriers set, whose details will become clearer to you
on perusal of a copy of a letter that will be disclosed should the meeting be successful as
requested, the original of which, was sent to Eskom Project Manager Mr Logan Reddy dated 8
February 2011 and later to the Group Chief !;_xecutive Officer Mr Brian Dames dated 11 February
2018. .
83. It has to be noted that it was clear that Aurecon Sputh Africa and Voltex Lighting/Bidvest achieved
their profits through corruption and further destroyed 100% black South African small enterprises
e.g. Castle Terminal Co.,through the assistance of Eskom Holdings Limited representatives.
84. In March 2011, Eskom partnered with SIU to fight corruption it was surprising that corruption
conducted by Aurecon South Africa and Voltex Lighting/ Bidvest in cohorts with Eskom
representatives could not be reported to SIU following the statement given by Mr Brian Dames
whom I reported my dispute dated 11 February 2011, while he was aware of my complaint, I
stand to believe he was supposed to have referred my complain to SIU for investigations, but he
chose to keep quiet about corruption under his nose. In his statement he alluded that Eskom is
strengthening its commitment to government's anti - corruption drive with a three-year
partnership with government's fighting agency, the Special Investigating Unit.
85. Mr Dames mentioned that the parastatal said today that amajor focus of the investigation was
likely to be probity checks on Eskom's procurement contracts. "Eskom spends R90 billion
annually on purchasing goods and services, including for its capital investment programme. The
SIU investigation will seek to uncover any corrupt practices or conflicts of interest, and will identify
risks for Eskom, including contract fraud and legal non-compliance." The SIU is a
multidisciplinary forensic investigation and litigation agency, created by statute. It focuses on
corruption, fraud and maladministration in the public sector. "We have made it a strategic
imperative that Eskom must be ahigh - performance organisation. Our partnership with the SIU
will help us to achieve that, and in addition will ensure that Eskom is ethical, well governed and
has appropriate fraud detection and prevention measures in place," said Mr Brian Dames 's CE.
86. "If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff
or contractors, we will take appropriate action, including criminal prosecution if it is warranted,
"Dames added.
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87. Mr Willie Hofmeyr, the head of the SIU, welcomed the partnership and said: "Eskom has
demonstrated aserious commitment to deal with corruption and maladministration issues. This
kind of innovative partnership to build capacity to fight corruption is vital if we are going to deal
with corruption effectively."
88. Eskom and SIU were in the process of finalising the terms of the agreement, according to which
the SIU would deploy ateam of expert investigators for asystematic check of all Eskom divisions
over the next three years. An appropriate application for aproclamation by the president was in
progress and,once gazetted, would confer special investigative powers on the SIU engagement.
The partnership would strengthen Eskom's internal audit function, and especially its forensic
team, Dames said. "it is going to strengthen the organisation as a whole. We hope it will
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r?hb'uld '(n~estigate Maladministration, and corruption reported to Him. Since
~~rec.,on_
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,n.Africa,.Y9lte~ Lighti_~g,~nd ~,idv_
e~t were_
in ~oho~s 'lv'.ith Es~om r~pre~e~tative~.
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rong,doing·and
,:~ · ,·,.< ,r•--,;--,,r.. ·--·:'.:, -.,•, '•)·=·,r - · · ,•
unlaw(ul Acts conducted in Eskohi. " · ·. · · '· ·
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alreviet notes (h
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~own as Voltex Lighting:
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f r{{~nuf~
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cturi r and''distributb?of electrica1C
pfo1frict~"~nd''services' und~r Mr'Stanley
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of R4i.f fur11[~;r1
1
~ith!3:
,1%incf~~~E/ ~nd'trading profit
( t') () rfl l..., 1
j ~ , r~ (•~. • · 1( , • ·
of Rt81;8-
million with '6,2% decre~se between 201Q·a
.nd 2011 fi_nancial.statem!;lnt.
thrb'J~lfor~-of,d6rtuptio:
n.:antltaptu'ring: Yvhile Eskom fdok~w'ay a re·venue of R10 990 b86
m
;iliidn
: tr~mt asti~-Ter~i'nal er:{ -'Eskom.abuse~ thdir -
tfoWe
'r',_b~ing .untqrr·and,u~competiUve,
witft6u
't''b~ip~;tran~~are~'t R
o~/c~h
-~·~~~f(rnediu:rn
1
•eht~tpfi~~-grdw, 'w.
hen they'ar¢''destrpyed
• • ,. I • ' • I ,.,... ( ' ' '.· , ... ( ,, ' , ,. . . ~ , ..... '; r" ' t . ., . I I ' I ~ • '. '
de!iberate·
ly by.the Public·Enterprises 'sucl( as·Esl<c;>'ni,'Es'ko:m'that was supposed to prqmote
young and budding ·
co·mpa'nis lik~ Castle Terminal-Co.? When Castle Terminal Co.,was ethical
, . and _
respected Goyernance to;the _
lat_ter, it also actf;9 with integrity without fe,ar or favour.
,. • ! • ✓ ~ •
'•• ~ I • r •, : ,- I ; j I • ' , ' 4 ~• : : ! I ' • ' ' j •' •
92. :i;sko~·~ old,ingi Lj~ited ·
cha(r~a~_
Mr,J~bu Maby-z_
a,, #ro~_.a'l_etter gated 1.6 Octobe(2~18,'from
. . ~hJtW
~sKo"ril_
Bbiir~.c:6hsequ_
ently'~p°o!'dg'ise~·~ci'c~~i1
lrer~iH~1 Co.;(Pty) Ltd.It has to be noted
that CastleTermi~·ai Co:; contract nurrbef'4600025920, was cancelled unlawfully by Eskom and
therefore Eskom shouldpay'Castle Terminal Co., afull arnourt of contract numb~r 4600025920
piu's'1
'0,5o/o n't'erest from2011 till to d~te.. . , ·
·. ''
93. paying Castle~
Term of the contract plus ~ 0,5%
interes"t.·This is iiblear sign th'at ,gbve~nmeht is'h6t.'cortcer'rieo·about the development of small
medium enterp~
ises for as'lori'g big Companies a're making profit its okay'. Eskom even today
does not mention or want to k~ow o~ hear_
what exactly happened from my side. Hence when a
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report was given in State Capture Commission Eskom did not mention any wrong doing
conducted between Eskom and Aurecon South Africa, Voltex Lighting and Bidvest.
94. What was the reason for Eskom Holding's Limited Executive Board consequently apology to
Castle Terminal Co (Pty) Ltd? Does it mean that Eskom Executive Board accepted their wrong
doing but they excepted and don't want to take Responsibility for cancelling Castle Terminal Co
(Pty) Ltd contract number 4600025920 unlawfully.
95. Eskom Destroyed the reputation of Castle Terminal Co. (Pty) Ltd and Oupa Lucas Teke by
distorting facts on the letter dated 02 February 2011 written by the Project Manager Mr Logan
Reddy copied Mr T Mdakane, Mr TSibanyoni, Mr SNarain Singh, Ms MMosoatsi, Mr Pdu Tait
and Mr LJafta, with false accusation that Castle Terminal failed to comply with the health and
safety regulations, failed to submit the initial project plan and progress reports or schedule on a
weekly basis thus failing to comply with your obligations and hindering the employer, failed to
provide the employer with an assurance thatJhe work will be completed by the contracted period
as requested in a letter dated 27 January 2011 and as stated in the contract, thus failing to
comply with your obligations and hindering the Employer.
96. Castle Terminal successfully approached Standard Bank to provide capital finance. This serves
to confirm that, as regards finances, Castle Terminal is ready to proceed with no foreseeable
impediments to discharge its responsibilities in accordance with the agreement. Castle Terminal
is thus ready, willing and able in respect of the finances and human resources (labour) to
discharge its obligation in respect of this tender project. The problems alluded to above are the
only one holding the progression of the work.
97. With regard to Safety, Health and Environmental management systems, kindly be informed that
appointment of Safety and Health Manager, in compliance with applicable Safety and Health
laws has been done. The notification of construction work has been signed and approved by the
Department of Labour for both Grootvlei and Arnot Power Stations and by both Grootvlei and
Arnot as required.
98. Any attempt or insinuation by Eskom that Castle Terminal is unable to deliver on its contracted
responsibilities in respect of issues raised in Paragraph 95 hereof, is devoid of the truth.
99. Kindly receive attached copy of the letter received from Eskom Holdings Limited Chairperson Mr
Jabu Mabuza.
Corruption in business is as old as business itself - corruption in the public sector even older. To obtain
favours, payoffs are made, to gain special rights, a gift is given. Corruption exists to some extent in all
cultures, under all market systems and in all countries. In some cases, governments and businesses
depend on it for their very existence; in others it is condemned, despised and criticised, but never really
eradicated. My objectives are not to stand in judgement or to consider moral issues. My findings of a
study concerning managerial attitudes towards corruption in business are considered. Whether all the
situations used are corrupt is aquestion of attitudes, values and opinions.
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There are a large number of rather beautiful synonyms for the word corrupt, left - handed, profligate,
pernicious, improbious and tainted, to mention but afew. I prefer to see the corrupt person as one who
uses the authority and position entrusted to him to further his own selfish advantage to the disadvantage
of the firm, and ultimately society as awhole.
Aquestion of attitudes: Deviant behaviour is often the result of, and aggravated by, attitudes towards that
behaviour. For example, if shoplifting is seen merely as taking something rather than theft, then it is
obvious that it will not be regarded as a serious criminal offence. Similarly, if the attitude towards
accepting a bribe is one of every one's doing it, or I deserve it, or its not really wrong, then it can be
assumed that the corrupt action will be regarded as an acceptable part of business life. Corruption in
business are management attitude and that is the questions we need ask ourselves whether this is how
we want to industrialize our beloved Country South Africa.
Ibelieve that Ihave information or evidence that will help the Commission in its mandate as shown above.
Subject to the Rules and Procedures of the Commission and the issues of fairness, I am availing myself
to State Capture. Key to my consideration is to help~
the commission in its work but also to be given the
space to tell my story and share my own experiences when I was contracted by Eskom.
I therefore, request an urgent private meeting with the State President Mr Cyril Matamela Ramaphosa,
in order to discuss my understanding of the manner in which his name will be implicated in my submission
to the State Capture Commission. Following his participation as the Chairperson of Bidvest. Mr Cyril
Ramaphosa acquired the reins as chairman in July 6, 2004. The Director's responsibility for the financial
statements was signed by the Chairman Mr Cyril Ramaphosa and Chief Executive Mr Brian Joffe in
August 27, 2011.
It is Clear Voltex Lighting or Bidvest Electrical received permission from Bidvest Board and the Chairman,
Voltex Lighting or Bidvest Electrical could not enter into any project, without consulting Bidvest Group
CEO, Bidvest Board and the Chairperson for approval. because Bidvest Corporate role to Voltex lighting/
bidvest electrical was to provides strategic direction, financial, risk and sustainability management,
marketing, investor, relations, corporate finance, corporate communications, house investments and
provides Executive training to the Group.
Ifind it necessary to take responsibility as the citizen of this Country South Africa, to honour and respect
the State President Mr Cyril Matamela Ramaphosa and his office, by making sure, that before I submit
to State Capture Commission, Idiscuss my findings with him first.
I am looking forward to hearing from his excellency the honourable State President Mr Cyril Matamela
Ramaphosa.
Your faithfully
Oupa Lucas Teke
ID NUMBER 6901075946080,
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Gender Male: Age 50: Nationality South African
House No.341 Ramotene Section Chaneng, Phokeng, 0310, North West Province
Cell No. 076 460 6327
Occupation: Director at Castle Terminal Co. (Pty) Ltd.
I know and understand the contents of this declaration.
I have no objection in taking the prescribed oath.
I consider the prescribed oath to be binding in my conscience.
--------~ ~-:________________
I certify that the dep~nent has acknow.
le~g~d ~hat he knows and understands the contents of the
this declaration which was sworntobefore'meand th~ d~poner,it's signature attached thereon in
, • ' , · f•,I , · . , ,  ,. i
myc
prese at Sun City Police Station on (date) 2C?Q 19 '.-- 1o- (!) l at about
....-,-i.- l"'l Ib CZ(- 4'c....--_
s,
HA-~ ~ - ..
---
Commissioner of Oath
TIRELO YA MAPODISI A AFRICA BORWA
I I {
SAPS: £ .u..-v ,-> T;T',
~ <..J ~ ,. . 0t OCT 2019
SUN CITY
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Castle Terminal Co. (Pty) Ltd and Oupa Teke requesting a meeting with president ramapohosa
Castle Terminal Co. (Pty) Ltd and Oupa Teke requesting a meeting with president ramapohosa

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Castle Terminal Co. (Pty) Ltd and Oupa Teke requesting a meeting with president ramapohosa

  • 1. Oupa Lucas Teke Managing Director and Project Manager Castle Terminal Co., (Pty) Ltd oupa.teke@gmail.com +27 76 460 6327 To Mr Cyril Matamela Ramaphosa President of the Republic South Africa Head of the National Ex Private Offic Union Buildings, Dear President Mr Ramaphosa, 27 September 2019 REQUEST FOR A MEETING WITH THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA MR CYRIL RAMAPHOSA, Wl'JiH·REGARDS .TO THE MATTER THAT I AM SUBMITTING TO STATE CAPTURE COMMISSION RELATING TO ESKQM NECJ ENGINEERING & CONSTRUCTION CONTRACT N. UMBER 4600025920· 1 ··s~TWEEN 'ESKOM HOLDING LIMITED (REG NO. 2002/015527/06) AND CASTLE TERMINAL COMPANY (PTY) LTD (REG NO. 2008/027442/07) FOR THE SUPPLY, DELIVERY AND INSTAL. LATION.OF LIGHTING FIXTURES FOR TWO (2) FOSSIL FIRED POWER STATIONS (ARNOT AND. GROOTVLEI) TO REALISE ENERGY EFFICIENCY . . '. SAVINGS AT THE POWER STATIONS DURING THE PERIOD 2011-01-03102011-02-15 WITH REFERENCE TO ESKOM HOLDING LIMITED CAPTURE AND CORRUPTION WHICH INCLUDE ESKOM GENERATION DIVISION, AURECON SOUTH AFRICA, VOLTEX LIGHTING AND BIDVEST SOUTH AFRICA. --------------------------~- ---------------------------------------- I, the undersigned, Oupa Lucas Teke, do hereby.state under oath that: 1. The purp f this letter i me~ting wi resident Mr Cyril Matamela Ramaphosa, before I serve a notification th~t. I intend·making submission to the State Capture Comm.ission of enquiry on the tenure in (~010 - 2011) of my company Castle Terminal Co, at Eskom. My submission will implicate Aurecon South Africa, Voltex Lighting, Bidvest and the Office of the Public Protector, Adv. Busisiwe Mkhwebane and Adv. Christoffel Fourie who is managing the department of integrity and Governance in the office of the Public Protector. {) L '"' Q) tlO (ti Q_
  • 2. 2. My President Mr Matamela Ramaphosa, was the Chairman of Bidvest, Mr Brian Joffe the Chief Executive of Bidvest and Mr Stanley Green the Chief Executive of Voltex Lighting or Bidvest Electrical and the late Professor Jakes Gerwel was the Chairman ofAurecon South Africa. When Aurecon South Africa, Voltex Lighting and Bidvest flouted Section 217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996, PFMA and Treasury regulations and Supply Chain Management at Eskom in 2010 and 2011. 3. My company Castle Terminal Co., (Pty) Ltd was awarded NEC3 engineering and construction contract number 4600025920 by Eskom Holding Limited to the total value of R10 990 086 VAT inclusive. For the supply, delivery and installation of lighting fixtures for two (2) Fossil Fired Power Stations (Arnot and Grootvlei) to realise energy efficiency saving at the power stations during the period 2011 - 01- 03 to 2011 - 02- 15. Soliciting akey performance indicator: Areport of performance against each key performance indicator is provided: . a. Once the project has been implemer.ited savings was to be verified by the measurement and verification team. b. The following KPA's are to be achieved: Station kW Savings GWh Savings Arnot 289.93 2.12 Grootvlei 293.56 2.21 4. Aurecon South Africa in 2010 was awarded contract number 4600024744 dated 3 September 2010 by Eskom Holding Limited as part of the 15 Fossil Fired Power Station to conduct an electricity efficiency review on the Eskom Generation Fleet Comprising of 15 Power Stations known as: Arnot, Duvha, Hendrina, Kendal, Kriel, Lethabo, Majuba, Matimba, Matla, Tutuka, Camden, Grootvlei, Drakensberg and Palmiet. Eskom Should Advise us on how much was paid to Aurecon South Africa and Voltex Lighting and Bidvest for submitting Tainted or Flouted report to Eskom Holdings Limited. 5. For preparing pre-tender audit and design report on behalf of Eskom Generation, specified in proprietary specification or their trade mark. The pre-tender audit and design report, reproduced tender GEN3135. Subsequently Aurecon South Africa and Voltex Lighting/Bidvest, tendered for tender GEN3135. 6. Consequently, Eskom Holdings Limited on the 20th December 2010, unlawfully awarded Aurecon South Africa and Voltex Lighting or Bidvest Electrical acontract from tender GEN3135 to supply, deliver and install lighting fixtures for four (4) Fossil Fired Power Stations (Camden, Hendrina, Tutuka and Komati) to reali. se energy efficiency saving at the power stations during the period 2011-01-03 to 2011-02-15. Valued at R38 315 617.00. 7. The factual scenario outlined above drives one to a reasonable conclusion, namely that the agreement was initially tailored for Aurecon South Africa and Voltex Lighting/Bidvest. The engagement of Castle Terminal Co. was only asmokescreen from the inception. DL NQJ tl1) ro Cl.
  • 3. 8. I Oupa Lucas Teke the founder, managing director and project manager representing a duly incorporated company known as Castle Terminal Co. (Pty) Ltd with Registration number 2008/027442/07. 9. Look forward to addressing awide range of issues: including but not limited to the origins of the crisis engulfing Eskom Holdings Limited, unlawful termination of Castle Terminal Co contract number 4600025920 dated 24 February 2011, Eskom Bid specification committee, Bid evaluation committee and bid adjudication committee, Eskom Chief Engineer Mr Shanil Narain Singh, Eskom Project manager Mr Logan Reddy, Eskom Project Supervisor Mr Shanil Narain Singh, Eskom Negotiation specialist Mr Themba Sibanyoni. Eskom Chairperson of the weekly meeting Mr Ronny Khumalo, Eskom Senior Manager Commercial Generation Department Mr P du Toit, Eskom Commercial Generation representative Ms Matsebela Mosoatsi, Mr Thulani Mdakane, Eskom Finance Generation representative Mr Philip van Niekerk, Eskom Generation Technical representative Mr Shanil Narain s·ngh, Eskom Senior Legal Advisor: Regulations and Governance Mr Liwalam Jafta and Eskom Group CEO &Accounting Officer Mr Brian Dames for failing to practice Eskom's Policies and procedures, Eskom Governance and Ethics, by flouting of Section 217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996, which provides that: a. When an organ of state in the national, provincial or any other institution identified in the national legislation contracts for goods or services, it must do so in accordance with the system which is fair, equitable, transparent, competitive and cost effective. . . b. Reference is also made to, section 3(1). of the Public Finance Management Act of 1999 I (hereinafter referred to as PFMA) read with Schedule 2thereto which provides that the latter Act is applicable to Eskom. Your attention is also drawn to paragraph 16 of the National Treasury Regulations dealing with Supply Chain Management and issued during March 2005 in terms of Section 76 of the PFMA. 10. My interpretation of the above -quoted legal frame work is that Eskom is bound by the provision of Section 217 (1) of the Constitution of South Africa, PFMA, Treasury regulation and Supply Chain Management. 11. It is clear that Aurecon South Africa, Voltex Lighting and Bidvest worked together with Eskom Holdings Limited representatives in activities of corruption and capturing of Eskom. When Aurecon South Africa was contracted to conduct an electricity efficiency review on the Eskom Generation Fleet comprising of 15· Power Stations. Contract number 4600024744 dated 3 September 2010. 12. The Executive summary of contract number4600024744 fluently describe the methodology, time and cost associated with Eskom Energy Services for aNational Generation Energy Audit. OL
  • 4. 13. This report covers the audit,design and the results for Grootvlei Power Stations. The audit results indicated a saving of 0.5 MW (3,3 GWh p.a.) at a total cost of R26 million. Lighting was by far the most cost-effective area for savings in terms of payback with a potential 293 Kw (2.2 GW p.a.) of savings at acost of R4.6 million, followed by water and then HVAC (Heat Ventilation Air Condition). Potential energy efficiency saving of 42% for lighting, 33% for HVAC and 67% for water were identified. Regarded as one project divided into two (2): a) Aurecon South Africa performed a detailed audit and design of Heat Ventilation Air Condition (HVAC) and Domestic water heating. b) Voltex Lighting &Bidvest South Africa performed adetailed lighting audit and design. 14. The Project Organization,Organogram:directly involved in the execution of this plan is as shown below: Eskom Generation Aurecon (Pty) Ltd Voltex Lighting/Bidvest Audit team Design team Owner of the project Contracted Subcontracted (Voltex Lighting, Bidvest/ Aurecon) (Voltex Lighting, Bidvest /Aurecon) 15. Eskom Generation required a national generation energy audit and detailed design to be conducted for all 15 designated Eskom generation facilities nationally.The focus was specifically on auxiliary station load.The project goal was to produce designs that will result in an electrical saving in excessive of 15% per site on non-essential loads. 16. The section that provides asummary of the information are contained within Schedule Aand B, namely the HVAC, Water and Lighting audit & design results data that can be acquired in the Eskom pre-tender audit and design report document. 17. Feedback Report on the HVAC &Domestic Hotwater energy audit is as follows: a. Aurecon South Africa: was under the Chairmanship of Prof Jakes Gerwel b. Reference : 105985 Date : September 2010 · Author : Mr HL Townsend Date of submission : 1September 2010 Prepared for :Eskom Prepared by :Aurecon -tj" QJ tlO (1J Cl..
  • 5. Contact Person Telephone E-mail 18. Roles and Responsibilities: Tshwane Office: Aurecon Centre, 1040 Burnett Street, Hatfield, Tshwane, South Africa, : Mr Henry Townsend : (012) 427 2384 : henry.townsend@af.aurecongroup.com (a) Aurecon was providing a lead consulting, quality assurance and project management role. (b) Aurecon was doing the Heat Ventilation and Air Conditioning (HVAC) and Water Heating Audits and design. (c) Whilst Voltex Lighting/Bidvest was.appointed as asubcontractor for the Lighting and Occupational Sensors switching audit and design. (d) Aurecon has established the audit and design criteria in association with the Eskom representative and Voltex Lighting/Bidvest. (e) Aurecon was managing the progress and quality aspect of the project. Aurecon was providing the interface with the client as well as the quality assurance functions. 19. Role and Responsibilities of Voltex Lighting/Bidvest Project Report Grootvlei Power Station: (a) Voltex Lighting/Bidvest conducted a detailed lighting audit from 3rd August 2010 to 5th August 2010 at Grootvlei Power Station ·which is situated close to Balfour in the Mpumalanga Province. (b) The audit was done on behalf of Aurecon South Africa who in turn was contracted to Eskom Generation Division. (c) The audit covered all areas of the power station except for perimeters and floodlighting. The project was to replace inefficient lamps and fittings with state-of-the-art modern equipment which would contribute to substantial gains in energy efficiency. In addition, occupancy sensors would be incorporated into various areas to further increase the energy savings. (d) The audit team was accompanied by Eskom personnel throughout the Audit. 20. Voltex, Voltex Lighting Reg No. 1964/006740/07 is also known as Bidvest Electrical a leading distributor of electrical products and services in South Africa. 21. Aurecon South Africa subcontracted Voltex Lighting/Bidvest South Africa as follows: a) Chief Executive officer Voltex: Mr Stanley Green b) Voltex Lighting, Registration Number: 1964/006740/07. c) A member of the Bidvest Group: L.f) <l) tl.O cu a..
  • 6. i. St. Andrews Office Park, Block C, 39 Wordsworth Avenue, Sender wood, Johannesburg, 2007. ii. P.O. BOX 16881, Doornfontein, 2028, South Africa. iii. Telephone: (011) 879 2500 iv. Email: www.voltexlighting.co.za 22. Role and Responsibilities of Bidvest: a. Operational review notes that the Bidvest Corporate role to Voltex lighting or Bidvest Electrical is to provides strategic direction, financial, risk and sustainability management, marketing, investor, relations, corporate finance, corporate communications, house investments and provides Executive training to the Group. b. Operational review notes that Bidvest Adds value by identifying opportunities and implementing Bidvest's decentralised entrepreneurial business model: under Mr Brian L' Joffe Chief Executive: earned a Revenue R683,2 million with 6,5% decrease, and trading profit R140,3million with 9,1%increase. (2010 - 2011) c. Operational review notes that Bidvest South Africa, realignment into 10 focused divisions was successfully implemented.It has to be noted that Voltex Lighting or Voltex or Bidvest Electrical came into existence as part of the 10 focused divisions that was successfully implemented. Performance was mixed, reflecting a patchy, hesitant recovery and ongoing weak demand in construction and hospitality. Freight and Rental performed strongly, Travel staged a good recovery, Automotive optimised opportunities and paperplus and servives coped well. Banking operations showed good growth. All teams showed resilience, driving revenue 14,0% higher to R59,0 billion (2010: R51,8 million), while trading profit reached R 3, 4 billion (2010: R3, 1 billion), the division includes a variety of service and product offerings across South Africa. Under Mr Lindsay Ralphs Chief executive: earned aRevenue R59,0 billion with 14,0% increase, and trading profit of R3,4 billion with 10,4% increase. (2010 - 2011 ). d. Operational review notes that Bidvest Electrical known as Voltex Lighting: A leading manufacturer and distributorof electrical products and services under Mr Stanley Green Chief executive: earned aRevenue of R4.1 billion with 3,1%increase and trading profit of R181,8 million with 6,2% decrease. (2010 - 2011) 23. To my surprise Voltex lighting and Bidvest part of their earned Revenue of R4.1billion and part of their trading Profit of R181.8 million was made out of being subcontracted by Aurecon South Africa to a project which belong and initiated by them. Since it is clearly confirmed by Voltex Lighting that the on-going energy crisis has been along time coming, as it was in 2002, that we at VOLTEX LIGHTING began to prepare for what we saw as the in-inventible in terms of electricity capacity. We formed our Energy Service Division, where the task was to concentrate on energy efficiency solutions that could be achieved through the introduction of the latest technologies in lighting.During the last three years we have established ourselves as the leading lighting ESCO (Energy Service Company) as part of the Eskom DSM initiative, and are currently OL lD QJ tlO ro 0...
  • 7. involved in projects that will save 40 Megawatts in power on an annualized basis.This Cataloque bears testimony to our commitment to only offer energy saving products and services to the South African and world markets. Voltex Lighting, winner of the ETA award in the Industrial Sector for its exceptional contribution to the National Energy Efficiency Programme. Endorsed by the Department of Minerals and Energy, and Eskom. 24. Studying from Sixth Edition Construction Specification Writing Principles and Procedures authored by Harold J. Rosen, Mark Kalin, Robert S. Weygant, John R. Regener, Jr, it has to be known that, Aurecon South Africa and subcontractor Voltex Lighting/Bidvest as a subject matter expert, had to understand that there are four methods of writing specification as exposed below, when they were preparing Eskom Generation pre-tender audit and design report, and they fully comprehended that Section 217 (1) of the Constitutions of the Republic of South Africa, Act 108 of 1996, PFMA and Treasury regulations and Supply Chain Management uphold to Reference Standard Specifying method. 25. Four method of writing specification as exposed below are as follows: a) Descriptive Specifying: Under this method, exact properties of materials and methods of installation are described in detail without using proprietary names (manufacturers' trade names). b) Reference Standard Specifying: Under this method, reference is made to established standards to which the specified products and processes shall comply or conform. c) Proprietary Specifying: Under this method, actual brand names, model numbers, and other proprietary information are specified d) Performance Specifying: Under this method, required results are specified and the criteria are specified by which the performance will be verified. The Contractor is free to provide any material complying with the performance criteria. 26. Aurecon South Africa is managing the progress and quality aspects of the project, and providing the interface with Eskom Generation as well as the quality assurance functions jointly with Voltex Lighting/Bidvest specified Proprietary Specifying methods when they were establishing auditing and designing criteria in associatio. nwith Eskom representative. 27. The method of specifying used by Aurecon South Africa together with Voltex Lighting/Bidvest known as Proprietary Specifications had several disadvantages and it was against section 217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996, PFMA and Treasury regulations and Supply Chain Management as follows: Disadvantages ofProprietary Specifications: a) Reduces or eliminates competition b) May require products with which the Contractor has had little or poor experience c) Favours certain products and manufacturers over others. OL r--,... Q) tlO ro a..
  • 8. 28. The facts above clearly illustrate that both pre-tender audit and design report and tender 3135 project, in question, was conducted in a very contravention of the spirit of competitiveness to extent that Castle Terminal Co., was concerned and in contravention of the principles in Section 217 (1) of the Constitution of the Republic of South Africa: 29. The relevant section ofthe Constitution was honoured more in the breach regarding the five tenet and precepts of procurement in organs of state. The specifications in the tender document were in contravention of the entrenched rule of procurement which provides that they must be described in terms of performance required rather than descriptive characteristics for design. Specifications should not create trade barriers in contract requirements in the form of specifications, plans, drawings, designs, testing and test methods, packaging, marking or labelling or conformity certification. 30. Rules of procurement provides that specifications may not make reference to any particular trade mark, proprietary specification, name, sp~cific origin or producer unless there is no other sufficiently precise or intelligible way of describing the characteristics of the work, in which case such reference must be accompanied by the words "equivalent" suitable and unbiased specification reference should be compiled for the particular requirement with proper terms of reference which should not be company names or brands. In this instance Eskom "murdered competition by insisting on aparticular material branded by aparticular company. 31. Procurement practice provides that provisions relating to drafting of specifications should generally ensure fair treatment of bidders and competition that is sufficiently wide. Slanted specifications would clearly defeat fairness, transparency and competition and the use of trade names may unnecessarily limit ·competition. It is important to guard against bias and any appearance of bias in the bidding process. 32. Bidders are required to declare any conflict of interest they may have in the transaction, for which the bid is submitted, and to declare whether they or certain persons linked to them are or have been in the service of the organ of state serving the same purpose. In this instance. Bid documentation must require bidders to declare any conflict of interest they may have in the transaction for which the bid is submitted. 33. To my opinion the alleged injunction by Minister of Public Enterprise, the Honourable Mr M Gigaba (MP), that the project be finalised on the 15 February 2011 as mentioned by Eskom Project Manager Mr Logan Reddy and Eskom P'roject Supervisor Mr Shanil Narain Singh on the 17 January 2011 meeting held at Eskom College, is only a feeble attempt by Eskom to have unspent budget spent within the financial year. Such a feeble attempt is termed "physical dumping" in financial parlance. 34. Logic informed me that Aurecon South Africa together with Voltex Lighting/Bidvest overlooked or flouted or contravened Eskom Holdings Limited's Standard Conditions of Tender April 2008 page 3 clause 5 Standardised specification and other publications, Section 217 (1) of the QL 00 (lJ tlO ro 0...
  • 9. Constitutions of the Republic of South Africa, PFMA, Treasury regulations and Supply Chain Management because they recommend Reference Standard Specification. 35. The Pre - tender audit and design report produced by Aurecon South Africa, Voltex Lighting and Bidvest written in proprietary specification was submitted to Eskom Holdings Limited Bid specification committee, bid evaluation committee and bid adjudication committee. The Pre tender audit and design report was unlawful or tainted or against section 217 (1) of the Constitution of South Africa, PFMA, Treasury regulations and supply Chain Management when it was submitted to Eskom. Nonetheless, Eskom Bid specification committee, bid evaluation committee and bid adjudication committee accepted the Pre tender audit and design report dated 3 September 2010 contract number 4600024744 without query. Tender GEN 3135 was reproduced from the Pre-tender audit and design report. 36. Castle Terminal Co. was invited by Ms Matsebela Mosoatsi on behalf of Eskom Holdings Limited dated 23 November 2010, to tender for the s~pply and installation of light fixtures for six (6) Fossil Fired Power Stations (Arnot, Camden, Grootvlei, Hendrina, Tutuka and Komati) to realise energy efficiency savings at the Power Stations during the period 2011 - 01 - 01 to 2011 - 02 - 15. The deadline for tender submission was around 10:00 hours on 2010 -12 - 03. 37. The scope of the tender project includes, storage of new and old fittings, the save disposal of all redundant items, all miscellaneous material, costs and all labour associated with implementation or replacement of the items contained within the Bill of quantities. The invited service providers or contractors were also expected to provide ·proof of adherence to SANS lumen level by providing lux samples after installation. 38. On or about 03 December 2010 Castle Terminal Co duly tendered to render services as prescribed in the above - mentioned Tender Document GEN3135 as summarised herein above. It is worthy to note that the recommendations of the pre tender audit and design prescribed the installation of specified electrical products which are solely supplied by Voltex Lighting/Bidvest, at least in South Africa. As Castle Terminal was aware of this, it tendered using the price list of the electrical material from AC/DC (hereinafter referred to as AC/DC) as proposed material. 39. The letter confirming that the AC/DC proposed material will be used for the required services was attached to Castle Terminal Co tender documents that were delivered on the 03 December 2010. This means that the Castle Terminal Co tendered on the strength of the fact that it was to use electrical material other than the one provided by Voltex Lighting/Bidvest. 40. On the 19th December 2010, Castle Terminal was invited by Eskom to attend a meeting which was scheduled to be held at Megawatt Park on 20 December 2010. Castle Terminal obliged to the request, and Mr OL Teke on its behalf duly attended the meeting. In the said meeting, Castle Terminal was informed that its bid to render services was successful in respect of two power stations, namely Grootvlei and Arnot. Further, Eskom, requested a discount of R1 393 473.96 on the pricing tendered by Castle Terminal Co. en <l) tl.D ro 0..
  • 10. 41. It should be mentioned that it became apparent that Eskom did not base the requested discount on any calculation and the Bill of Quantities did r:iot entail request for discount. The basis of this assertion is premised on the response received after Castle Terminal Co inquired on how the requested discount was arrived at, namely that Castle Terminal Co may distribute the requested discount of R1 393 473.96 at their discretion and as they deem fit and appropriate. Castle Terminal acceded to the request for discount, since it was the instruction given by Mr Shanil Narain Singh the Eskom Technical representative, Chief Engineer and or Eskom Project Supervisor. 42. Castle Terminal was later provided with acopy of the proceedings of the said meeting which is attached hereto as Annexure "B". The abovementioned minutes were signed by Mr. OL Teke, of Castle Terminal on the 21 December 2010. Castle Terminal agrees with the contents of the said meeting except that the discussion and agreement about the discount of R1 393 473.96 million was omitted. ASchedule of Deviation to be completed by the Employer prior to contract award responding to the letter attached to Tender GEN 3135 document when delivered at Eskom on the 3rd December 2010 was also omitted." 43. Notice of Acceptance or the preliminary construction agreement was also signed on the 21 December 2011 . Copy of the said preliminary agreement is attached hereto and marked Annexure "C". As indicated above, the discounted amount of R1.393473.96 was not reflected in the preliminary agreement. ASchedule of Deviation to be completed by the Employer prior to contract award responding to the letter attached to Tender GEN 3135 document when delivered at Eskom on the 3rd December 2010 was also omitted. Castle Terminal did not deem it necessary to raise the issue of the R1 393 473.96 million discount regardless of its commercial importance. 44. The Policy and Procedure described by Eskom Holdings Limited's Standard Condition of Tender April 2008 under Eskom's undertakings clause 21 issuing offinal contract: Issue the final contract documents to the successful tenderer for acceptance within 1(one) week of the date of Eskom's notice of acceptance. Mr Pdu Tait Senior Manager Commercial Generation department signed the Notice of Acceptance on the 21st December 2010. Following Notice of Acceptance, I was expecting to receive a complete signed final contract on the 30th December 2010. But to my surprise the final contract was signed by Mr P du Tait and received on the 14 January 2011. While the Notice of Acceptance outlined clearly that the contract starting date is 2011-01-03 to 2011-02-15. 45. In pursuit of the Notice of Acceptance or preliminary agreement Castle Terminal Co carried out a site inspection at both Grootvlei and Arnot Power Station on the 31 December 2010. This inspection was geared towards preparing accommodation for the workers and also personally experiencing the site and what was required to be done. On the 3-5 January 2011, Castle Terminal made further arrangements for its employees to be inducted and to attend medical check-up. Thereafter the Eskom Power Station Project Leader Mr B N Mkhize with unique number 4271576 ensured that they receive the access cards. It was during these visits that Castle Terminal Co requested, and was furnished with, the copies of the pre-tender audit and design report. A copy of the said pre-tender audit and design report is attached hereto as Annexure "C". 0 nCl) OD ro a..
  • 11. 46. Perusal of the pre-tender audit report yielded information that Aurecon South Africa & Voltex Lighting/ Bidvest was involved in no small degree in the pre-tender audit process. Suffice it to state that Aurecon South Africa and Voltex Lighting/Bidvest was the chief author of the pre-tender audit and design report on the basis of which the tender was issued. That Aurecon South Africa and Voltex Lighting/Bidvest also tendered to render the services it recommended, and consequently was awarded the bulk of the tender is common cause. and that is, effectively Aurecon South Africa and Voltex Lighting/Bidvest compiled the pre-tender audit in which it recommended certain services that it can render and proceeded to 'successfully' tender for those services. 47. Of significance is that it was at that stage when the pre-tender audit report was furnished when Castle Terminal Co came to the realisation of the relevance and importance of Voltex Lighting/Bidvest material as they are strictly specified in the pre-tender audit and design report and Bill of Quantities. It has to be noted in parenthesis that at the time when the tender documents were submitted, the pre-tender audit report and the scope of the specifications in the Bill of Quantities were not availed to Castle Terminal Co, hence the belated realisation. 48. This raised a suspicion that the preferred service providers might be strictly required to use the material solely provided by Aurecon South Africa and Voltex Lighting/Bidvest, notwithstanding the fact that other similar material available at other electrical suppliers could produce the same or better output. As this suspicion, could not be left to chance, Castle Terminal Co made a decision that clarity should be sought from Eskom in a properly constituted meeting at the first available opportunity so that it can be formally discussed. This opportunity presented itself only on 14 January 2011 when this matter was discussed. Before one can traverse deeply into the discussion pertaining to this, it is deemed better to continue chronicling the events so as not to disturb the sequence which thus f;:ir has characterised the contents of this correspondence. The picture will become conspicuously evident in the chronology. 49. On the 12th January 2011, Oupa Teke of Castle Terminal Co signed a final construction agreement between Eskom and Castle Terminal Co. He did this in the absence of Eskom. Eskom management countersigned only on 14 January 2011, at Eskom Headquarters in absence of Castle Terminal Co, like in the Notice of Acceptance the final contract provides that the period of the contract is from 3rd January 2011 to 15 February 2011 . Eskom purposely delayed the submission of the final contract to Castle Terminal because Eskom particularly Mr Pdu Tait was aware that the final contract comes into effect on the date when the tenderer receives one fully completed original copy of contract number 4600025920 including the Schedule of Deviations (if any) but Schedule of Deviations was omitted purposefully. 50. Castle Terminal Co could not deliver its proposed material in Both Arnot and Grootvlei fossil fired power stations since Eskom Schedule of Deviations was not completed by the Employer. Following Eskom Holdings Limited's Standard Conditions of Tender April 2008 under General clause 5 Communication: it states that each communication between Eskom and Tenderer shall be to or from the Eskom Representative only, in writing, and in aform that can be read, copied and recorded. For this Purpose, in writing means means hand written, type written printed or electronically made and resulting in apermanent record. rl rl (I) tl.O (1J CL
  • 12. 51. It was an implied condition of the agreement with Eskom that the preferred service providers will hold weekly safety and quality control meetings (hereinafter referred to as Weekly Project Meetings). Thus, for the duration of the tender, the progress meetings have to be held on weekly basis, whereat safety and quality control matters relating to the project and other matters incidentals thereto are to be discussed. Quality control matters include matters such as the national standards, the type of material to be used, and compliance of the project with project lines. 52. The first of such meeting was held at Eskom Grootvlei boardroom, 1st floor, Smokey mountain Offices in Witbank, Mpumalanga Province. Witbank, on the 14 January 2011, time 9:00 -12:00 Castle Terminal Co., and Voltex Lighting/Bidvest attended the said Weekly Project Meeting. It was in this meeting that Castle Terminal Co., was favoured with an opportunity to raise its Dispute. . 53. Subsequently meetings regarding my di were held dated 17 January 2011 at Eskom I College Midrand reception between myself and Eskom Project Manager Logan Reddy and Eskom Project Supervisor Shani! Narain Singh, 20 January 2011 at Acacia Boardroom Megawatt Park Sunninghill between myself and Eskom negotiation specialist Mr Themba Sebanyoni, Eskom Commercial A. Keyser and Eskom Project Manager Logan Reddy. 54. Funny enough that the minutes of the meeting dated 20 January 2011 was signed by Chief Engineer Mr Shanil Narain Singh even though he was not part of the meeting, it was expected that the minutes of the meeting should have been signed by the Eskom Negotiating specialist Mr Themba Sibanyoni as introduced; who was chairing the meeting. The question is why did Chief Engineer Mr Shanil Narain Singh signed for the minutes of the meeting he was not formulating part of or he did not attend? 55. After a long process of Eskom being defiant, abusing their powers, being unfair and uncompetitive in the discussions regarding my Dispute. On the 8February 2011 Castle Terminal Co., submitted an Official Complain background to the Eskom Project Manager Logan Reddy and on the 11 February 2011 Castle Terminal Co., submitted the very same complain background to the accounting officer, the Group CEO Brian Dames. 56. Eskom fibbed or lied in their response letter dated the 11 February 2011 written by Mr Liwalam Jafta, Senior Legal Advisor; Regulations and Governance, that both discount of R1.393473.96 and Schedule of Deviation to be completed by the employer were included or written in the minutes of the negotiation meeting dated the 20th December 2010, and finally in contract number 4600025920. 57. Eskom failed to report the matter to independent Adjudicator, Eskom in full swing investigated themselves of which it was unethical and against the Notice of Acceptance signed by Mr Pdu Tait. Clause 8 Adjudicator: which confirmed that the Adjudicator for this contract will be appointed when disputes arises. N nQ) tl.D ro CL
  • 13. 58. Subsequently, On February 2011, I reported the matter to the office of the Public Protector and my complaint was allocated aref no. 7/2-35784/2011. My Complaint was referred to integrity and Governance department under Adv. Christoffel Fourie. Whom I find him to be corrupt. I was informed by Mr Paul Tjale that he must stop investigating my matter since it was not serious. Hence this matter took 8 years. The office of the Public Protector was partial during the investigation of my complaint. 59. To my knowledge anyone can complain to the Public Protector. I also regarded the Public Protector as areferee who ca can look at all sides of aproblem. Once the Public Protector finds that the complaint is justified, she will do whatever possible to find solution to the problem. The Public Protector has four (4) method of investigating the complaints: a) Public Protector can report the matter to Parliament, which will debate the matter and see to it that the proper remedial action is followed. b) Investigations are mostly done informally. c) Public Protector can summon people to give evidence under oath or affirmation when it become necessary. d) Public Protector has search and seizure powers. •. 60. An informal investigation method was used to investigate my case. The Public Protector in this instance failed to investigate my matter in time, failed to be impartial, failed to protect Section 217 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996. When Eskom, Aurecon South Africa, Voltex Lighting and Bidvest flouted Section 217 (1) of the Constitution, PFMA, Treasury regulation and Supply Chain Management. 61. It is aduty ofthe Public Protector to investigate conduct in government, at any level. This includes national, provincial and local government, and state-owned enterprises. The Public Protector investigates maladministration, including improper prejudice suffered by the complainant or another person, as a result of: Abuse of power, unfair, capricious, discourteous or other improper conduct. Undue delay, any other cause brought about, or decision taken by the authorities also fall within the Public Protector's jurisdiction. 62. The Public Protector also deals with power to investigate dishonesty or improper dealings with respect to public money, improper enrichment and receipt of improper advantage. The Public Protector also investigates corruption and alleged ethical lapses of members of the executive such as President, Deputy President, Ministers, Deputy Ministers, Premiers and MEC's. the Public Protector further has the power to resolve information access disputes; to receive protected disclosures from whistle-blowers and to protect them; and to review the decisions of the National Home Builders Registration Council. 63. Any person performing a public function can be investigated by the Public Protector. This includes anyone performing any official duty which affects all, or part of, the people of the South Africa such as employees of the state like a policeman or electoral officer. Corporations or companies where the state is involved such as Eskom and Telkom can also be investigated by the Public Protector. Statutory councils such as the Human Sciences Research Council and the Council for Scientific and Industrial Research' also fall under the jurisdiction of the Public Protector. O L (Y) nQ) OD ro 0..
  • 14. 64. Castle Terminal Co. discovered that it was improperly prejudiced by Eskom Holdings Limited, when Eskom was abusing its power by protecting unlawful conduct by Aurecon South Africa, Voltex Lighting and Bidvest. For writing pre-tender audit and design report. subsequently Eskom permitted Aurecon South Africa, Voltex Lighting and Bidvest to tender for tender GEN3135 written by them. On the 20th December 2010 Eskom awarded them four main Fossil Fired Power Station known as (Camden, Hendrina, Tutuka, and Komati) with the aim of allowing them later to supply spares and replacements. 65. Taking from the facts contained in both tender GEN3135 and Pre-tender audit and design report dated 3September 2010 contract number 4600024744. Neatly illustrated to me that the Existing product specified was written in Voltex Lighting /Bidvest proprietary specifications and the Proposed product where also written in Voltex Lighting/Bidvest proprietary specification. Both Pre-tender audit and design report and Tender GEN3135 confirmed that Aurecon South Africa and Voltex Lighting /Bidvest was the suppli~r, deliver and installer of the Existing Product as illustrated in both Pre tender audit and design report and Tender GEN3135. And that means from 2003 to 2009 Voltex Lighting and Bidvest audited, designed, supplied, delivered and installed energy efficiency lighting mentioned as Existing Products written in their trade names or proprietary specification as revealed in both Tender GEN3135 and Pre-tender audit and design report date 3 September 2010 contract number 4600024744. 66. Consequently, the Existing product written in both Tender GEN3135 and Pre tender audit and design report specified in Voltex Lighting/Bidvest trade mark or proprietary specifications remain confirming that for the past seven (7) years Voltex Lighting/Bidvest was the only supplier, deliver and installer of energy efficiency lighting at Eskom. The difference this time in 2010 is that Voltex Lighting/Bidvest were trying to hide their corruption with Eskom by Subcontracting underAurecon South Africa, but still Auditing, designing the pre tender report, reproduce tender GEN3135, tender, to be awarded the tender to also supply, deliver and install and later replace parts. The above-mentioned statement illustrates aproper Capture of Eskom Holdings Limited by Aurecon South Africa and Voltex Lighting/bidvest. 67. Eskom bid specification committee, bid evaluation committee and bid adjudication committee recognized that proprietary specification is unlawful or flouting section 217 (1) of the constitution of the Republic of South Africa but they ignored the wrong doing by accepting tainted pre-tender audit and design report and continue to reproduce tender GEN3135. 68. Castle Terminal Co., followed the Public Protector procedure of submitting information contained in the complaint letter as follows; a) The nature of the complaint, b) Background and history of the complaint, c) The reasons why Castle Terminal felt the complaint should be investigated by the Public Protector, d) The steps Castle Terminal Co., have taken to solve the problem, Castle Terminal Co., mentioned names, dates, and what was said. Copies of correspondence between Public Protector officials and Castle terminal Co., were attached to the letter of complaint. The matter was reported within two months in February 2011 not within two years as prescribed by the law. ~ nQJ b.O ru CL
  • 15. 69. Public Protector did not obey Procedural Fairness, the procedure that government follows in making an administrative decision must fair (Procedural fairness). If there is aset of established rules that the government must follow in coming to the decision then these must be followed oth~rwise the decision can be challenged. However, the common law rule - audi alteram partem rule - is one rule that the government must always follow in making a decision. This rule says that aperson whose rights are or may be affected by an administrative decision must be allowed to state his or her concerns before the decision is made. 70. In one meeting that I had with Adv. Busisiwe Mkhwebane dated the 6TH July 2017, time 14:00 PM, Idiscovered that she can be very emotional, she precisely and arrogantly informed me that she will never grant me common law rule - audi alteram partem rule - she mentioned that since she is representing me or Castle Terminal Co., she will make decisions on my behalf, she will never grant me access to the document as prescribed by the Constitution. She also promised to charge me for telling her that she is protectiQg Corruption conducted by Eskom, Aurecon South Africa, Voltex Lighting/Bidvest. Adv. Busisiwe Mkhwebane just walked out of the meeting angrily so. I was surprised by what I term misbehaviour conduct by the Public Protector. Our meeting was officially recorded, when the meeting abruptly adjourned, I requested the audio recordings, and I was permitted to have the copy of the audi recordings dated the 6th July 2017. 71. Public Protector failed to investigate Aurecon South Africa, Voltex Lighting/Bidvest and Eskom for flouting of Section 217 (1) of the Constitutior, of the Republic of South Africa. following the fact that the Public Protector is given the Powers to investigate Corporations or companies where the state is involved such Eskom. She did not give a remedial action towards Aurecon South Africa, Voltex Lighting and Bidvest for submitting pre-tender audit and design report dated 3 September 2010 contract number 4600024744 written in Voltex lighting or bidvest electrical trade marks or proprietary specifications. Which later reproduced tender GEN3135 also written or specified in Voltex Lighting or Bidvest Electrical trade mark or proprietary specification. 72. The Constitutional Court has ruled that any procurement process tainted by unlawfulness must be declared unlawful by court. Once this is done, the courts must consider what a just and equitable order would be. 73. Through Public Protector, I thought my rights to have access to information (Section 32 of the Constitution) held by the state or Public Protectors office, will help me to exercise my rights, and remained to be provided to my person. But the Public Protector took those rights away from me. Subsequently my rights to just administrative action (Section 33 of the Constitution of the Republic of South Africa) were also taken away from me, I also expected to be given reasons why Castle Terminal Co., Contract number 4600025920 was terminated unlawfully by Eskom, on the letter dated 24 February 2011. 74. Eskom only submitted the final contract signed by Mr Pdu Tait, on the 14 January 2011, when the contract started on the 3rd January 2011. Of which it was against notice of acceptance dated 21 December 2010. That stipulate that once the Notice of Acceptance is signed one (1) week O L L.n rl QJ t:lD ro a...
  • 16. later Castle Terminal Co, was to be given the Final contract. Eskom was projected to supply final contract on the 30 December 2010. Eskom failed to do so. The Public Protector ignored those facts in her ruling. 75. Eskom failed to respond to the letter that was attached to the tender document when tender GEN3135 was delivered to Eskom on 3rd December 2010. Eskom omitted to include deviation of material in the final contract as prescribed by the Contract. Eskom unlawfully deducted an amount of R1 393 473.96 million in my contract when bill of quantities did not mention anything about discount. 76. Public Protector Adv. Busisiwe Mkhwebane and Adv Stoffel Fourie appeared to be incompetent in the manner in which they investigated my complain and the manner in which remedial action was given. I could not review the matter in Court since I did not have the financial muscle to do so. And that is one of the reasons why it is in my interest to submit my case before the state capture commission. 77. The Public Protector was supposed to verify if the Pre-tender audit and design report submitted to Eskom by Aurecon South Africa and Voltex Lighting/Bidvest, if it was written in the manner that satisfy Section 217 (1) of the Constitution of the Republic of South Africa and secondly check if Tender GEN3135 was also written in the manner that satisfy Section 217 (1) of the Constitution of the Republic of South Africa, not forgetting all other misconduct by Eskom representatives for failing to abide by their policies and procedures. 78. Eskom Failed to report the dispute reported by Castle Terminal Co. to the independent Adjudicator following Notice of AGceptance clause 8 signed for by Mr Pdu Tait: Eskom Senior Manager Commercial, confirming that the Adjudicator for this contract will be appointed when dispute arises. The Public Protector failed to make aruling on the fact given. 79. Bid specification committee, bid evaluation committee and bid adjudication committee including Eskom Chief Engineer Mr Shani! Narain Singh, Eskom Project Manager Mr Logan Reddy and Eskom Supervisor Mr Shanil Narain Singh comprising the accounting officer or Group CEO Mr Brian Dames failed Section 217 (1) of the Constitution of the Republic of South Africa. PFMA, Treasury regulations and Supply Chain Management. The Public Protector failed and ignored to make a ruling on Eskom representatives, she conversed that Mr Thulani Mdakane was charged so Ishould be happy. 80. Shockingly Eskom denied Castle Terminal Co. an opportunity to use proposed material following the letter dated 2nd December 2010 attached to the tender document delivered to Eskom on 3nd December 2010. Eskom awarded Castle Terminal Co., contract number 4600025920 without including deviation of material as mentioned by Castle Terminal Co., in the letter attached to the tender document. Knowing very well that Castle Terminal Co., was supposed to use proposed material. Eskom denied Castle Terminal Co., by not responding or permitting Castle Terminal in writing to use proposed material as required following Eskom Standard condition of tender April 2008, Eskom also denied Castle Terminal extension of time, since Eskom signed and submitted OL .0 nQ) tlD ro Cl..
  • 17. final contract number 4600025920 on the 14 January 2011. While it was supposed to sign and submit the final contract on the 30th December 2010. 81. In contrast Eskom extended Voltex Lighting and Bidvest 8 months later dated 5 October 2011: Installation of energy efficient light (Ref No. H00102NM/2011) Hendrina Power Stations. While Aurecon South Africa and Voltex Lighting/Bidvest was supposed to have completed four awarded power stations (HENDRINA, CAMDEN, TUTUKA AND KOMATI} on the 15 February 2011. Public Protector ignored or failed to make aruling on the facts given above. 82. Castle Terminal experienced problems regarding the supply, delivery and installation of lighting fixtures at two Fossil Fired Power Station known as Arnot and Grootvlei to provide their contracted services due to unreasonable barriers set, whose details will become clearer to you on perusal of a copy of a letter that will be disclosed should the meeting be successful as requested, the original of which, was sent to Eskom Project Manager Mr Logan Reddy dated 8 February 2011 and later to the Group Chief !;_xecutive Officer Mr Brian Dames dated 11 February 2018. . 83. It has to be noted that it was clear that Aurecon Sputh Africa and Voltex Lighting/Bidvest achieved their profits through corruption and further destroyed 100% black South African small enterprises e.g. Castle Terminal Co.,through the assistance of Eskom Holdings Limited representatives. 84. In March 2011, Eskom partnered with SIU to fight corruption it was surprising that corruption conducted by Aurecon South Africa and Voltex Lighting/ Bidvest in cohorts with Eskom representatives could not be reported to SIU following the statement given by Mr Brian Dames whom I reported my dispute dated 11 February 2011, while he was aware of my complaint, I stand to believe he was supposed to have referred my complain to SIU for investigations, but he chose to keep quiet about corruption under his nose. In his statement he alluded that Eskom is strengthening its commitment to government's anti - corruption drive with a three-year partnership with government's fighting agency, the Special Investigating Unit. 85. Mr Dames mentioned that the parastatal said today that amajor focus of the investigation was likely to be probity checks on Eskom's procurement contracts. "Eskom spends R90 billion annually on purchasing goods and services, including for its capital investment programme. The SIU investigation will seek to uncover any corrupt practices or conflicts of interest, and will identify risks for Eskom, including contract fraud and legal non-compliance." The SIU is a multidisciplinary forensic investigation and litigation agency, created by statute. It focuses on corruption, fraud and maladministration in the public sector. "We have made it a strategic imperative that Eskom must be ahigh - performance organisation. Our partnership with the SIU will help us to achieve that, and in addition will ensure that Eskom is ethical, well governed and has appropriate fraud detection and prevention measures in place," said Mr Brian Dames 's CE. 86. "If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff or contractors, we will take appropriate action, including criminal prosecution if it is warranted, "Dames added. O L
  • 18. 87. Mr Willie Hofmeyr, the head of the SIU, welcomed the partnership and said: "Eskom has demonstrated aserious commitment to deal with corruption and maladministration issues. This kind of innovative partnership to build capacity to fight corruption is vital if we are going to deal with corruption effectively." 88. Eskom and SIU were in the process of finalising the terms of the agreement, according to which the SIU would deploy ateam of expert investigators for asystematic check of all Eskom divisions over the next three years. An appropriate application for aproclamation by the president was in progress and,once gazetted, would confer special investigative powers on the SIU engagement. The partnership would strengthen Eskom's internal audit function, and especially its forensic team, Dames said. "it is going to strengthen the organisation as a whole. We hope it will ~g~~~~!~r~r~i~~eit:r,~~~r ?:{~ ~~!J~i~~} 9_ ~ :.i ~ :nTI~ r ~ IYfJ ~~i- ~?. 9 t ~.n9 ~ r- ~nspf rj ~ ,~r··: ~e :~:..:frh.'i ~.:f~J~:'~i! :-i :- .. r·;( jr; ; "p·,;7--.. ~~:i!.' 1 ; !() '_1r•• :' /' ·;i ~·;-,f'J;;'~I',···: ;:.il'1 t ..-:..· :....•~r•;)_·•,; .. ~ ,' 1__:,~} ' :~ 89. F811btir1{iht a i:foO e~~RtforiJd B y·Mr;'Bri~tr· -oa~ef I · wb'~d~ r·w A y''~A'r· sfiant )am~~ M1Ied fo i'ni i~fffh ~(sn r?hb'uld '(n~estigate Maladministration, and corruption reported to Him. Since ~~rec.,on_ S9µ_ ,n.Africa,.Y9lte~ Lighti_~g,~nd ~,idv_ e~t were_ in ~oho~s 'lv'.ith Es~om r~pre~e~tative~. ~ r ~ tr~c~ iJ ~ ~ .f.9(rriif~ iSR~t~ ~ ~ 1 {.it~~)~.ri~'a}t~~ '.ti6n,~~(e~;tpe'/fi=e11rQary'26)1,Th_ a 1v~~/~li ar ~1 gn·'thaf M r)~na nDames'.bl~ffed.South''A¥ ricans·by,1 gn6rind 'f6 correct the W rong,doing·and ,:~ · ,·,.< ,r•--,;--,,r.. ·--·:'.:, -.,•, '•)·=·,r - · · ,• unlaw(ul Acts conducted in Eskohi. " · ·. · · '· · ~.,.....:~;r• ..-,1;••'. i, ,. ; ,:•·,, I .J:-_; ,,•,'•:::'>. ~ ! •:: i.l·.: ' <. 90. Voltsilt1g'htingiBidV esf Oper~tioH alreviet notes (h 'a tBldJJsl Electrical R ~own as Voltex Lighting: ¼ " M adin f r{{~nuf~ - cturi r and''distributb?of electrica1C pfo1frict~"~nd''services' und~r Mr'Stanley G f~ ~ ; ~.c'hi~f~ iec~ uJ~t,~ · ~in eq.aitiv~·n· & ~1 of R4i.f fur11[~;r1 1 ~ith!3: ,1%incf~~~E/ ~nd'trading profit ( t') () rfl l..., 1 j ~ , r~ (•~. • · 1( , • · of Rt81;8- million with '6,2% decre~se between 201Q·a .nd 2011 fi_nancial.statem!;lnt. thrb'J~lfor~-of,d6rtuptio: n.:antltaptu'ring: Yvhile Eskom fdok~w'ay a re·venue of R10 990 b86 m ;iliidn : tr~mt asti~-Ter~i'nal er:{ -'Eskom.abuse~ thdir - tfoWe 'r',_b~ing .untqrr·and,u~competiUve, witft6u 't''b~ip~;tran~~are~'t R o~/c~h -~·~~~f(rnediu:rn 1 •eht~tpfi~~-grdw, 'w. hen they'ar¢''destrpyed • • ,. I • ' • I ,.,... ( ' ' '.· , ... ( ,, ' , ,. . . ~ , ..... '; r" ' t . ., . I I ' I ~ • '. ' de!iberate· ly by.the Public·Enterprises 'sucl( as·Esl<c;>'ni,'Es'ko:m'that was supposed to prqmote young and budding · co·mpa'nis lik~ Castle Terminal-Co.? When Castle Terminal Co.,was ethical , . and _ respected Goyernance to;the _ lat_ter, it also actf;9 with integrity without fe,ar or favour. ,. • ! • ✓ ~ • '•• ~ I • r •, : ,- I ; j I • ' , ' 4 ~• : : ! I ' • ' ' j •' • 92. :i;sko~·~ old,ingi Lj~ited · cha(r~a~_ Mr,J~bu Maby-z_ a,, #ro~_.a'l_etter gated 1.6 Octobe(2~18,'from . . ~hJtW ~sKo"ril_ Bbiir~.c:6hsequ_ ently'~p°o!'dg'ise~·~ci'c~~i1 lrer~iH~1 Co.;(Pty) Ltd.It has to be noted that CastleTermi~·ai Co:; contract nurrbef'4600025920, was cancelled unlawfully by Eskom and therefore Eskom shouldpay'Castle Terminal Co., afull arnourt of contract numb~r 4600025920 piu's'1 '0,5o/o n't'erest from2011 till to d~te.. . , · ·. '' 93. paying Castle~ Term of the contract plus ~ 0,5% interes"t.·This is iiblear sign th'at ,gbve~nmeht is'h6t.'cortcer'rieo·about the development of small medium enterp~ ises for as'lori'g big Companies a're making profit its okay'. Eskom even today does not mention or want to k~ow o~ hear_ what exactly happened from my side. Hence when a . ,. . ,1 , ,/n.... 00 nCl/ 0.0 ro a..
  • 19. report was given in State Capture Commission Eskom did not mention any wrong doing conducted between Eskom and Aurecon South Africa, Voltex Lighting and Bidvest. 94. What was the reason for Eskom Holding's Limited Executive Board consequently apology to Castle Terminal Co (Pty) Ltd? Does it mean that Eskom Executive Board accepted their wrong doing but they excepted and don't want to take Responsibility for cancelling Castle Terminal Co (Pty) Ltd contract number 4600025920 unlawfully. 95. Eskom Destroyed the reputation of Castle Terminal Co. (Pty) Ltd and Oupa Lucas Teke by distorting facts on the letter dated 02 February 2011 written by the Project Manager Mr Logan Reddy copied Mr T Mdakane, Mr TSibanyoni, Mr SNarain Singh, Ms MMosoatsi, Mr Pdu Tait and Mr LJafta, with false accusation that Castle Terminal failed to comply with the health and safety regulations, failed to submit the initial project plan and progress reports or schedule on a weekly basis thus failing to comply with your obligations and hindering the employer, failed to provide the employer with an assurance thatJhe work will be completed by the contracted period as requested in a letter dated 27 January 2011 and as stated in the contract, thus failing to comply with your obligations and hindering the Employer. 96. Castle Terminal successfully approached Standard Bank to provide capital finance. This serves to confirm that, as regards finances, Castle Terminal is ready to proceed with no foreseeable impediments to discharge its responsibilities in accordance with the agreement. Castle Terminal is thus ready, willing and able in respect of the finances and human resources (labour) to discharge its obligation in respect of this tender project. The problems alluded to above are the only one holding the progression of the work. 97. With regard to Safety, Health and Environmental management systems, kindly be informed that appointment of Safety and Health Manager, in compliance with applicable Safety and Health laws has been done. The notification of construction work has been signed and approved by the Department of Labour for both Grootvlei and Arnot Power Stations and by both Grootvlei and Arnot as required. 98. Any attempt or insinuation by Eskom that Castle Terminal is unable to deliver on its contracted responsibilities in respect of issues raised in Paragraph 95 hereof, is devoid of the truth. 99. Kindly receive attached copy of the letter received from Eskom Holdings Limited Chairperson Mr Jabu Mabuza. Corruption in business is as old as business itself - corruption in the public sector even older. To obtain favours, payoffs are made, to gain special rights, a gift is given. Corruption exists to some extent in all cultures, under all market systems and in all countries. In some cases, governments and businesses depend on it for their very existence; in others it is condemned, despised and criticised, but never really eradicated. My objectives are not to stand in judgement or to consider moral issues. My findings of a study concerning managerial attitudes towards corruption in business are considered. Whether all the situations used are corrupt is aquestion of attitudes, values and opinions. t) L en rl QJ OD ro Cl..
  • 20. There are a large number of rather beautiful synonyms for the word corrupt, left - handed, profligate, pernicious, improbious and tainted, to mention but afew. I prefer to see the corrupt person as one who uses the authority and position entrusted to him to further his own selfish advantage to the disadvantage of the firm, and ultimately society as awhole. Aquestion of attitudes: Deviant behaviour is often the result of, and aggravated by, attitudes towards that behaviour. For example, if shoplifting is seen merely as taking something rather than theft, then it is obvious that it will not be regarded as a serious criminal offence. Similarly, if the attitude towards accepting a bribe is one of every one's doing it, or I deserve it, or its not really wrong, then it can be assumed that the corrupt action will be regarded as an acceptable part of business life. Corruption in business are management attitude and that is the questions we need ask ourselves whether this is how we want to industrialize our beloved Country South Africa. Ibelieve that Ihave information or evidence that will help the Commission in its mandate as shown above. Subject to the Rules and Procedures of the Commission and the issues of fairness, I am availing myself to State Capture. Key to my consideration is to help~ the commission in its work but also to be given the space to tell my story and share my own experiences when I was contracted by Eskom. I therefore, request an urgent private meeting with the State President Mr Cyril Matamela Ramaphosa, in order to discuss my understanding of the manner in which his name will be implicated in my submission to the State Capture Commission. Following his participation as the Chairperson of Bidvest. Mr Cyril Ramaphosa acquired the reins as chairman in July 6, 2004. The Director's responsibility for the financial statements was signed by the Chairman Mr Cyril Ramaphosa and Chief Executive Mr Brian Joffe in August 27, 2011. It is Clear Voltex Lighting or Bidvest Electrical received permission from Bidvest Board and the Chairman, Voltex Lighting or Bidvest Electrical could not enter into any project, without consulting Bidvest Group CEO, Bidvest Board and the Chairperson for approval. because Bidvest Corporate role to Voltex lighting/ bidvest electrical was to provides strategic direction, financial, risk and sustainability management, marketing, investor, relations, corporate finance, corporate communications, house investments and provides Executive training to the Group. Ifind it necessary to take responsibility as the citizen of this Country South Africa, to honour and respect the State President Mr Cyril Matamela Ramaphosa and his office, by making sure, that before I submit to State Capture Commission, Idiscuss my findings with him first. I am looking forward to hearing from his excellency the honourable State President Mr Cyril Matamela Ramaphosa. Your faithfully Oupa Lucas Teke ID NUMBER 6901075946080, 0 NQ) tlD ro Cl.
  • 21. Gender Male: Age 50: Nationality South African House No.341 Ramotene Section Chaneng, Phokeng, 0310, North West Province Cell No. 076 460 6327 Occupation: Director at Castle Terminal Co. (Pty) Ltd. I know and understand the contents of this declaration. I have no objection in taking the prescribed oath. I consider the prescribed oath to be binding in my conscience. --------~ ~-:________________ I certify that the dep~nent has acknow. le~g~d ~hat he knows and understands the contents of the this declaration which was sworntobefore'meand th~ d~poner,it's signature attached thereon in , • ' , · f•,I , · . , , ,. i myc prese at Sun City Police Station on (date) 2C?Q 19 '.-- 1o- (!) l at about ....-,-i.- l"'l Ib CZ(- 4'c....--_ s, HA-~ ~ - .. --- Commissioner of Oath TIRELO YA MAPODISI A AFRICA BORWA I I { SAPS: £ .u..-v ,-> T;T', ~ <..J ~ ,. . 0t OCT 2019 SUN CITY ,,, rl N(I) tlD ro Cl.