Standard Bank drags major Eskom supplier to court

Standard Bank has dragged the directors of Continental Africa Power Suppliers (ContiPower) — a major supplier of maintenance products to Eskom — to court over an unpaid debt of R22 million.

According to a City Press report, former South African ambassador to the US, Sheila Sisulu, is among the implicated directors, along with Jokhomo Rammotsi, Tlalane Lesoli, and Erich Herbst.

The directors could have their assets attached for breaching the various credit lines Standard Bank gave it when it loaned ContiPower the funds.

MyBroadband asked the individuals for comment, but they did not respond by publications.

The loans date back to 2019 and include a R8.5 million loan, a business term loan for R8.2 million, a commercial property agreement loan, and another loan of R5.3 million.

This was revealed in a debt recovery claim filed by Standard Bank business and recoveries manager Jaqueline van Wyk. The claim states that the company has failed to meet its financial obligations regarding loan repayments.

Van Wyk said Standard Bank had no option but to pursue legal action against Sisulu and her co-directors over the money.

The court papers show that the first loan agreement, from 2019, amounted to R8.5 million and was related to purchasing a property in Craighall and a farm.

The last R5.3 million loan was a Covid-19 emergency relief loan in 2020. Standard Bank agreed to loan the money to ContiPower over 66 months with a minimum instalment of R113,329.

Van Wyk said ContiPower breached by failing to make payment or remedy the breach when it was notified.

“They [the directors] bound themselves as guarantors and unconditionally guaranteed and undertook as principal and independent obligations, in favour of the bank, to make due, punctual, and full payment of all the past and present debts,” the court papers read.

As a result, they could have their assets attached through the legal process.

According to ContiPower’s website, the company has been in operation since 2006. It supplies and maintains high-voltage power systems.

“With decades of experience in supplying, installing, and servicing high-voltage products, ContiPower’s products are certified according to a wide range of international standards, including IEC, BS, ANSI and ISO,” it said.

“Through many years of industry experience and innovation, ContiPower is positioned to be a leading provider of solutions and services that enable power generation plants to perform efficiently, reliably, continuously and cost-effectively.”

It said its service offerings include supply, installation, and consulting, describing itself as a tried and tested long-term provider with extensive experience in South Africa.

“We are a diversified supplier of high, medium and low voltage electrical equipment, Turnkey Solutions and Renewable Energy solutions; a leading supplier for National Grid Utility Suppliers and other major industry players,” it said.

The company lists power utilities Eskom, the City of Cape Town, Eskom Uganda, City Power, and NamPower as some of its most notable clients and partners.

Its products include oil-to-air and oil-to-oil bushings, ring main units, switch disconnectors, surge arrestors, busbars, transformers, insulators, and tap changers.

“ContiPower’s range of high-voltage products and solutions enable the safe, reliable and efficient transmission and delivery of electricity for domestic and industrial use, with a product range encompassing high-voltage technologies; outdoor components and instrument transformers,” it said.