- Eskom and construction group Stefanutti Stocks have reached a full and final settlement of R580 million, bringing an end to a multi-year commercial dispute linked to building works at the Kusile Power Station.
The dispute, which began in earnest in 2022, centred on a series of claims and counterclaims arising from the Stefanutti Stocks Basil Read Joint Venture’s (SSBR) contract at the multibillion-rand power station. Eskom had previously alleged that SSBR had been overpaid by R1 billion, while the contractor insisted the utility still owed it money for completed work.
The settlement follows the completion of the Dispute Adjudication Board (DAB) process for claim 5 — a standard dispute-resolution mechanism on large infrastructure projects. The DAB had ruled that SSBR was entitled to R685 million, but Eskom said constructive engagement allowed both parties to close out all outstanding claims, ultimately agreeing on the lower amount of R580 million. This figure covers claim 5, claim 6 and Eskom’s counterclaim.
Before adjudication began, SSBR’s claim for claim 5 alone totalled R1.6 billion. Stefanutti Stocks had also previously disclosed a suite of preliminary claims — including costs related to subcontractors, construction, preliminary and general expenses, and finance — amounting to R1.14 billion. Since 2021, the company had secured R119 million from earlier DAB rulings.
Eskom’s Group Chief Executive, Dan Marokane, said the outcome demonstrates the utility’s strengthened defences against contractor claims as it pursues efficiencies and protects public funds. Eskom also stressed that the payment will not be recovered through electricity tariffs and that settlements of this kind are common for complex, long-term infrastructure projects. The agreement, the utility noted, does not imply any fault or mismanagement.
For Stefanutti Stocks, the finalisation of the agreement allows it to recoup costs tied to the claims process, with part of the funds earmarked for a capital repayment of its loan obligations once payment is received.
With Kusile Power Station now fully operational — Unit 6 having reached commercial operation in September 2025 — the settlement closes one of the project’s lingering contractual matters. The power station has long been associated with cost overruns, corruption allegations and construction delays, making the resolution a significant step toward project close-out and stabilisation. Read more
Eskom says it remains committed to strong governance, disciplined contract management and safeguarding public finances as it shifts focus to operational optimisation and reliable energy delivery for South Africa.
Author: Bryan Groenendaal
