Pretoria - A top subcontractor at the R105bn Eskom's Medupi power plant is facing fraud charges relating to welding work for boilers, reported BDLive on Thursday.

Hitachi Power Africa and Eskom told the parliamentary public enterprises oversight committee on Wednesday that documents submitted on welding for boilers were found to be fraudulent.

Hitachi’s chief operating officer Tom Brown said the matter is now being investigated by the police.

"It’s a fraud issue," said Brown. "I cannot say much more."

Earlier this month, the National Union of Metalworkers of South Africa (Numsa) said contractors working on the power plant may be deliberately delaying the completion of the project.

"The greatest problem we may be sitting with is sabotage," general secretary Irvin Jim was quoted to have said.

He said the contractors stand to make more money while the project is being delayed.

Eskom said labour unrest and under-performing contractors have made it unable to generate electricity from its new Medupi plant until the second half of 2014.

It marked a six months delay in the scheduled.

Democratic Alliance MP Natasha Michael said at the time that the set back comes at a hefty price of about R10bn to taxpayers.

"The latest delay forecasts a shortfall of power supply in 2014 of 700MW and comes at an expected 15% price increase, pushing the cost of the project from R91bn to R105bn, an additional R10bn to taxpayers," she said in a statement.

Michael also called on Public Enterprises Minister Malusi Gigaba to take action.

"The minister must now act on his word and make sure some heads roll and face the consequences of poor management at the project."

She said not having power would negatively affect economic growth and job creation.

BDLive