South Africa\u2019s debt-stricken power utility faces further scrutiny after lawmakers criticized a housing project for workers that cost more than five times the initial estimate and was eventually abandoned.<\/p>\n
Planned accommodation at Eskom Holdings SOC Ltd\u2019s Kusile plant ballooned to R840 million ($56.5 million) from an estimated R160 million as a result of \u201cfruitless and wasteful expenditure,\u201d according to parliament\u2019s portfolio committee on public enterprises. The project was scrapped and remains unfinished, while Eskom is alleged to have spent billions of rand on rental accommodation and transportation for its employees, the committee said in a statement.<\/p>\n
The failed project is an example of mismanagement at Eskom that\u2019s left it struggling to meet demand for electricity and needing continued bailouts from the government. Kusile, the utility\u2019s newest plant, is behind schedule and over budget.<\/p>\n
The loss-making utility relies on government to service R464 billion rand of debt and is at the center of investigations into allegations of widespread corruption during the administration of former president Jacob Zuma.<\/p>\n
Eskom had shown a \u201cserious disregard for taxpayer money,\u201d and the matter must be investigated and action taken against all involved, the committee said. The utility\u2019s management is scheduled appear before the lawmakers on Feb. 17.<\/p>\n