- Construction group Stefanutti Stocks has reached a full and final settlement with Eskom following a long-running dispute over work performed at the Kusile power station.
- The agreement will see the company receive R580 million after years of adjudication and claims lodged by both parties.
The settlement follows a recent decision by the Dispute Adjudication Board (DAB), which ruled that Stefanutti Stocks was entitled to an additional R685 million for work carried out on the multibillion-rand power station project.
The dispute dates back several years, originating from Eskom’s allegation that the contractor had been overpaid by R1 billion. Stefanutti Stocks rejected the claim, maintaining instead that Eskom still owed it money for work completed at Kusile.
In 2022, the company notified shareholders that it had filed a series of preliminary claims, including R337 million in overarching preliminary and general costs, R193 million in subcontractor claims, R438 million in construction costs, and R171 million in finance costs. These provisional claims totalled R1.14 billion.
Since August 2021, Stefanutti Stocks has secured R119 million in payments through earlier DAB rulings.
Stefanutti Stocks said it will use the settlement funds to cover costs linked to its claims process and to make a capital repayment toward its loan obligations once payment is received.
The Kusile power station project has been plagued by massive cost overruns, fraud, corruption and sabotage. Read more
Author: Bryan Groenendaal
