CAPE TOWN - Gupta-owned mining firm, Tegeta Exploration and Resources was awarded a 11-year coal supply contract from Eskom, despite the firm not meeting coal specification standards, reports Fin24.
This follows a detailed list of Eskom's current coal suppliers provided by Public Enterprises Minister, Lynne Brown.
Brown disclosed the list in a response to a parliamentary question posed by the DA's Shadow Minister of Public Enterprises, Natasha Mazzone.
The list showed who was supplying coal to Eskom, the amount of coal that was supplied and also the quality of the coal.
Tegeta, formerly partially-owned by the Gupta family and Duduzane Zuma, is under forensic investigations pertaining to the manner in which the contract was awarded.
Investigations will also interrogate whether the Gupta family and associates received favourable advantage.
The investigations into the mining firm started in 2015 by National Treasury, followed by another forensic report by PricewaterhouseCoopers (PwC).
The PwC report then revealed that Tegeta supplied coal to Eskom despite failing to meet regulatory requirements.
These requirements included having a water license and infrastructure to test the quality of its coal.
Regardless of failing to meet the above requirements, Eskom granted Tegeta on March 10, 2015, a 11-year contract to the Majuba coal-fired power station to supply 1.36 million tonnes of coal per year.
Notably, the initial value of the contract was R3.7bn but Eskom later intended to expand the contract to an additional R2.9bn for the Brakfontein Colliery.
However, National Treasury did not grant approval for the contract expansion.
Similarly, Eskom has come under fire for payments to other Gupta-linked companies, Trillian and McKinsey, reported by Business Report,
This comes after an estimated R1.6bn worth of payments was made by Eskom to these companies.
Eskom officials were believed to have lied about payments.
This was followed by a call for these officials to face criminal charges by Public Enterprises Minister, Lynne Brown.
Although Brown said that she was not initially aware of these payments, Mazzone said that as minister in charge of state-owned entities she should have known.
- BUSINESS REPORT