Eskom supplier R83m in debt

Durban - A specialist electrical services supplier founded by businessman Vivian Reddy has debts amounting to R83m, the Mercury newspaper reported on Tuesday.

According to the newspaper, directors of EJ Power, formerly known as Edison Jehamo Power, are attempting to prevent several winding up applications with a counter-proposal that the firm trade its way out of financial trouble.

The banks have also frozen the company's overdraft facilities.

In an affidavit, director Simon Wilkinson said the company had R46m in assets. It owed creditors R18m, staff and the taxman R10m, and "concurrent creditors" (creditors and sub-contractors) R55m.

The company has reportedly been involved in the erection of power lines throughout South Africa for Eskom. It was also involved in a partnership that saw it becoming the first company in Africa to specialise in live-line maintenance using robotic arm technology.

The newspaper reported that Reddy, who is known for connections with the ANC elite, including President Jacob Zuma, and the government deals his Edison group of companies has landed, founded EJ Power in 2005.  

He had since resigned as a director, but his son Shantan Reddy was a director, according to the newspaper. 

EJ Power specialises in maintaining power lines and has contracts with Eskom and municipalities.

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Read more on: vivian reddy debt business
Terry-Lee Heuer 2012-09-04 12:15:38 PM
Wonder if they have been paid by Eskom and the Municipalities seeing that most of them have been put under administration!!
corne.dunn 2012-09-04 12:46:29 PM
Electricity rate increase in 3...2...1...
rockR32 2012-09-04 01:10:43 PM
Very interesting choice for the headline..."Eskom supplier R83m in debt". How does the state of this company being in debt have anything to do with Eskom? Are we meant to assume something? I think this is irresponsible reporting!!
Denis De La Port 2012-09-04 01:59:13 PM
Lets summarise, ZUMA in, Money ZOOOOOOOMA out!
SJ 2012-09-04 02:46:17 PM
Hopefully it will be exposed soon how many Porra salutes they gave that all led up to this trouble and even to whom the saluted.
JAJAJA 2012-09-04 07:07:31 PM
and the bonuses will still be payed!!!!