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Basil Read Holdings Limited (JSE:BSR) News - Voluntary announcement ESKOM Briefing Document regarding alleged overpayment at Kusile Power Station
Basil Read Holdings Limited
(Incorporated in the Republic of South Africa)
Registration Number 1984/007758/06
Share Code: BSR ISIN: ZAE000029781
("Basil Read" or "the Company")
VOLUNTARY ANNOUNCEMENT ESKOM BRIEFING DOCUMENT REGARDING ALLEGED
OVERPAYMENT AT KUSILE POWER STATION
Shareholders are referred to the briefing document released by Eskom SOC Ltd (“Eskom”) dated 10
June 2020 reflecting the Kusile Contract Investigation Status (“the Briefing Document”) and
subsequent media articles regarding the matter. These reports allege, amongst other things, that
Stefanutti Stocks Basil Read joint venture (“SSBR-JV”) has been overpaid in relation to a Kusile
Miscellaneous Buildings Contract called Package 16.
Basil Read would like to highlight the following to the shareholders:
1. Basil Read concluded a settlement agreement with Stefanutti Stocks with effect from 1 September
2017, selling its interest in the SSBR-JV to Stefanutti Stocks. The rationale for Basil Read was that
the contract had been loss making, due primarily to a lack of resolution with regards to the claims
for extension of time (termed prolongation).
2. The settlement agreement indemnifies Basil Read from any and all liability under, or in connection
with the agreement entered into by SSBR-JV with Eskom, whether incurred or arising prior to or
after 1 September 2017.
Shareholders are further advised that the SSBR-JV is disputing the allegations that it has been
overpaid and the investigation is still ongoing.
Bedfordview
10 July 2020
Sponsor
Grindrod Bank Limited
Date: 10-07-2020 03:50:00
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