Chaos As Eskom Loses R600 Million Oracle Licenses Court Case

Sunday World newspaper reports that Eskom, the SA state owned electricity provider, lost an urgent interdict court case against Oracle on Thursday.

This follows threats by Oracle to withdraw their software (Maximo), over an unpaid R600 million penalty for licenses. Eskom relies on this software to provide its services and will collapse if Oracle withdraws its software.

In 2019,Oracle slapped Eskom with a R7, 6 Billion penalty after an audit revealed that the power utility was over using their software.

The amount was later reduced to R600 Million.

Timeline

2017 – Eskom enters Master Agreement with Oracle

2019 – Oracle conducts a licensing audit at Eskom. Eskom denied the allegations of over using the software.

2020 – Oracle demands payment and threatens to withdraw services.

2020 – Eskom takes the matter to court.

2020 – Eskom writes to Oracle offering to pay the opex part and not the capex part. Oracle does not respond.

2021 – Eskom loses case at the Joburg High Court.

Oracle spokesman, Gaurav Bhatnagar, told the newspaper that Eskom must pay their dues.

Please read the full story in today’s Sunday Sun Newspaper – 4 April 2021.