US tech company threatens Eskom withdrawal

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Oracle is threatening to withdraw its services from Eskom, after the power utility disputed what it owes the company.

Originally set at R7 billion, the amount has been reduced to below R400 million, but Eskom says its actual debt is R166 million.According to Eskom's Sikhonathi Mantshantsha the utlity has a binding contract with the tech company until 31 March 2022.

"Eskom is within its rights to pursue its rights under that contract and to continue to ask the courts to compel Oracle to continue providing the services that they have been contracted for," he says. South Africans are literally paying the price for Eskom's debt. And they need R10 billion. The parastatal is hoping to recover from customers with its 15.6% tariff hike. Energy sector analyst, Roger Lilley believes Eskom won't be able to cope on just that and is likely to ask for another government bailout.

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ESCOM manager confirmed this morning they have a plan B in case Oracle does decide to withdraw, although I find it strange that a bill can be reduced from R800M to R400M ,I support the motion by ESCOM to have the Oracle bill verified and audited before payment.

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