JOHANNESBURG – Details from the explosive forensic report into Eskom has revealed the pivotal role played by erstwhile acting Transnet chief executive Matshela Koko and his management team in strong-arming Glencore to sell the Optimum Coal Mine (OCM) business to Tegeta.
The investigators concluded that Eskom management prejudiced Glencore by refusing to sign the negotiated Coal Supplier Agreement (CSA), giving an advantage to Tegeta to acquire all assets in OCM, which amounted to “the abuse of a position of authority, a breach of trust”.
Investigators found that Eskom management prejudiced Glencore by fining OCM R2.1 billion for supplying allegedly poor-quality coal. In a damning conclusion, the report found that Eskom acted in bad faith when the company, represented by Koko, refused to waiver the historical penalties levied against OCM which led to OCM going into business rescue, but reduced the said penalties through arbitration after Tegeta purchased the assets in OCM.
“We noted through minutes of a meeting between Eskom, Tegeta and Glencore, that Koko indicated that Eskom was not willing to waive the penalties levied against OCM,” the report said.
“It would appear that Eskom took a hardline stance to attempts by Glencore or the appointed business rescue practitioners to negotiate the price Eskom was paying for Optimum coal.”