Eskom has been ordered by the Western Cape High Court to pay a R1 billion compensation claim to Framatome, the supplier for the Steam Generator Replacement (SGR) project at Koeberg Nuclear Power Station. This costly consequence stems from a January 2022 decision by the National Nuclear Regulator (NNR) to approve the SGR project, despite Eskom’s failure to complete a building for the safe storage of the old, highly radioactive steam generators. 

The R1 billion, if paid, could potentially be shared between Framatome, Lesedi (the local contractor) and various subcontractors such as multinational engineering firm, Asea Brown Boveri (ABB). 

The 18th of January 2022…

The approval was granted on 18 January 2022, and on that same day, Peter Becker, the civil society representative on the NNR Board, was excluded from board processes and later dismissed. A court has since ruled that Becker’s dismissal was carried out “in bad faith” and “with an ulterior motive.” To date, there has been no investigation into who was responsible for this action or whether it was connected to the R1 billion claim.

“The R1 billion claim payable by Eskom will be easy money for many subcontractors,” says Becker. “In many cases, it will be payment for work that was not actually done.”

ABB has previously been implicated in questionable dealings with Eskom. In 2022, the multinational agreed to pay over R2.5 billion in punitive reparations to South Africa for corrupt contracts at Eskom’s Kusile power station. This was following an earlier R1.6 billion settlement in 2020 related to the same state capture-era agreement.

“I was in the habit of reading in detail every document put before the Board and it is likely that I would have noticed that the required building was not in place,” says Becker. I would therefore have objected to the NNR approval of the SGR project and so could have saved Eskom from receiving the compensation claim.” 

Koeberg mismanaged?

“The nearly R1 billion payment to Framatome underscores the deep financial and governance risks tied to Koeberg’s life extension,” says Koeberg Alert Alliance spokesperson, Lydia Petersen. “While Eskom denies that this is a penalty, the fact remains that the public is absorbing the cost of delays, poor management, and legal wrangling. There must be full transparency around project contracts, dispute outcomes, and long-term costs, to ensure the public interest is protected.” 

Kevin Mileham, a Democratic Alliance member of the Energy and Electricity Portfolio Committee, has called for Eskom to account to parliament for the mismanagement that led to the R1 billion claim.

“The recent reports of mismanagement at Koeberg are deeply troubling, particularly as Eskom prepares to seek a licence extension for the second unit of the Nuclear Power Station,” says the Southern African Faith Communities’ Environment Institute’s (SAFCEI) Executive Director, Francesca de Gasparis. 

“The catalogue of errors highlighted in the media – not only their financial implications, but most critically the risks to safety – raises serious red flags. We remain gravely concerned about the way Eskom communicates issues at Koeberg, while continuing to push for a licence extension in the face of what appears to be an entrenched culture of mismanagement.”

No community representative over three years later 

The NNR Act requires a Board member representing the interests of communities to be appointed, as well as other positions such as a representative of organised labour. The Annual Performance Plan of the NNR includes a budget line item of R15 million for “Improved stakeholder trust” yet the civil society representative post has currently been vacant for three and a half years.

“Good governance and accountable leadership has been lacking in the nuclear space,” says the Green Connection’s Strategic Lead, Liziwe McDaid. “The new minister of energy has been in the saddle for over a year but he has failed to ensure accountability. Why does the NNR board lack community representation? Why has no one been held accountable for the previous nuclear deal which was found to be unlawful in 2017? Why do unproven nuclear technologies appear in the Integrated Resource Plan (IRP) with no allowance for public scrutiny?”

On 13 June 2025, a call for nominations for the organised labour representative was published; however, it appears the NNR did not issue a similar call for the community representative. The CEO of the NNR also unsuccessfully lobbied parliament on 8 December 2023 to amend the NNR act to remove the post of community representative. 

The recently amended NNR Act now requires the Portfolio Committee on Electricity and Energy to compile a shortlist of candidates for this board position. We reached out to the NNR’s Manager of Communications and Stakeholder Relations, Gino Moonsamy, for clarity on the matter. Moonsamy referred us to the Department of Electricity and Energy Analyst SOC-Governance and Legal Assurance, Msawakhe Msimang who stated: “The process for the appointment of the community representative is underway, the Department is finalising internal processes for gazetting. We are hopeful that the vacancy will be gazetted soon.” Msimang did not provide any timeline in this matter. 

We also reached out to the ANC Chairperson of the Portfolio Committee on Electricity and Energy, Ms Nonkosi Mvana, and the DA MP, Kevin Mileham, for comment but as of publication, no response had been received from either.