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Eskom says Oracle halts technical support

Eskom said it’s urgently seeking new providers of technical support.
Image: Bloomberg

Eskom Holdings said it’s urgently seeking new providers of technical support after Oracle Corp.’s South African unit withdrew its services over a payment dispute.

The state power utility has been in a disagreement with Oracle, which initially claimed Eskom underpaid it by about R7.3 billion ($511 million), before reducing the amount to R380 million. Eskom is only prepared to pay R166 million, spokesman Sikonathi Mantshantsha said by phone Monday.

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“Oracle has withdrawn its services,” Mantshantsha said. “Eskom has implemented its contingency plans to reduce any risk from this. We have been working on that plan for the past two weeks.”

Eskom earlier this month lost a court bid to compel Oracle to continue providing services until April 2022. The debt-laden utility is battling pressure from creditors and has struggled for years to provide reliable power, leading to supply disruptions that ripple through Africa’s most industrialised economy.

Mantshantsha declined to say whether Oracle’s withdrawal would lead to power-supply disruptions.

“Eskom is now out on an urgent procurement tender to find this technical support elsewhere,” Mantshantsha said.

Oracle spokesman Gaurav Bhatnagar said via email that Eskom “should pay the pending dues for the Oracle software that they owe us.”

© 2021 Bloomberg

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Well done Oracle: Its time these Govt institutions learnt a lesson .

Viva Oracle Viva !!!

Just remember, that at the end of the day, the tax payers will be paying Oracle!

How ironic. When I don’t top-up my pre-paid, guess what happens?

This is proof that socialism is working, delivering the exact result of that is promised.

Everyone is equal, equally as miserable, as poor and without electricity just like everyone else.

“Advert”
Tender; Tender; Get your Tender Right Here, Al Presidente is looking for loyal comrades to support daily operations of the state debt machine. The payment will be printed on the beautifully decorated paper of our past heroes, with number so large and plentiful you will feel like a million bucks.
Do not worry about skills, will only employee the most loyal of comrades who strive to keep the party going, all night long.

R7.3 billion, it just looks so much better where we put it as R7,300,000,000,000.00. All those zeros, looks pretty.

This ANV government cannot accept the power of US corporations. The health minister was soundly beaten up in negotiations with Johnson and Johnson-non refundable deposit or we do nothing. Now Jamnadas Eskom got cut off by Oracle.

Huge US corporations are incredibly powerful-more so than many governments-and wealthier. They also know this and can and do abuse it but our little ANC must learn to understand how irrelevant they are on the global page.

It’s simple business, you don’t pay, you don’t recieve the benefit. Eskom themselves use this tactic!.
Good on Oracle for enforcing this standard rule of business, these SOEs are not above been treated like any other customer who does not pay just because they are government owned.

Seems Eskom is urgently looking for another supplier that they will also not pay? Else they would sit around a table, agree what amount is due and pay the bill.

To change such a large procurement system is very expensive.

End of comments.

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