Eskom resolves R580 million dispute with Stefanutti Stocks Basil Read
Eskom has confirmed a significant resolution to a protracted commercial dispute that has its roots in 2022. This dispute involved the Stefanutti Stocks Basil Read Joint Venture (SSBR) concerning the building contracts at the Kusile Power Station, which is a critical infrastructure project in South Africa.
The conclusion of this matter follows the formal Dispute Adjudication Board (DAB) process for claim 5—a process customary for major infrastructure undertakings aimed at resolving intricate contractual claims.
The settlement was reached after both Eskom and SSBR engaged constructively, enabling the clarification of their respective positions and facilitating the closure of all outstanding claims. Ultimately, Eskom has agreed on a final settlement amount of R580 million for claim 5, which is R105 million less than the DAB’s decision of R685 million. This settlement amount also encompasses claim 6 and Eskom’s counterclaim, illustrating the thoroughness of the resolution.
Notably, SSBR’s initial claim for claim 5 was a staggering R1.6 billion, highlighting the complexities inherent in the negotiations. Dan Marokane, Group Chief Executive of Eskom, said, “As Eskom drives multiple initiatives to increase efficiencies across the utility, the results demonstrate the extremely robust measures that have been implemented to defend Eskom and its balance sheet against contractor claims
This resolution reflects Eskom’s broader strategy to balance cost, risk, and time, effectively avoiding extended legal battles while safeguarding public funds. Crucially, the payment to SSBR will not be recouped through tariffs, ensuring that citizens will not bear the financial burden of this settlement.
Eskom has emphasised that such settlements are commonplace in large, multi-year infrastructure projects globally, and this agreement does not represent any admission of fault or mismanagement on their part. With Kusile Power Station now fully operational and the last unit, Unit 6, set to reach commercial operation on 29 September 2025, this settlement marks an important milestone in the closure of legacy contract issues.
This breakthrough allows Eskom to concentrate on closing out contracts, optimising operations, and delivering reliable energy to South Africa. The company has reiterated its commitment to robust governance, disciplined contract management, and the responsible stewardship of public funds, ensuring value for money as it navigates these legacy contract matters.