ESKOM CE Brian Molefe expressed surprise on Monday at media reports that the Treasury intended to scrutinise all the utility’s coal supply contracts.
Mr Molefe said Eskom had already co-operated with an investigation by the department last year into the same matter.
Over the past year, the Sunday Times has carried several reports suggesting Eskom has favoured the Gupta family, who are close friends of President Jacob Zuma, in granting coal contracts.
Last year Eskom granted a contract worth R400m annually to Tegeta Exploration and Resources’ Brakfontein colliery. The Guptas are the major shareholders in Tegeta and Mr Zuma’s son Duduzane, through Mabengela Investments, also has an interest in the company.
In December, Tegeta bought Optimum Coal, which was in dispute with Eskom over penalties imposed for supplying subspecification coal to Hendrina power station under a contract that runs to 2018. Mineral Resources Minister Mosebenzi Zwane visited Optimum’s owners, Glencore, in Switzerland to help negotiate the deal.
Eskom has insisted it will continue to press its right to R2bn of penalties from Optimum under the new owners. However, it confirmed last month it would buy coal from Optimum, among others, for its Arnot power station, after the contract with Exxaro expired in December.
Mr Molefe said on Monday Eskom responded in June to a letter from the Treasury asking for information about all its existing coal and diesel contracts. It submitted those documents and co-operated with a visit by Treasury officials in July to scrutinise larger documents. In October, the Treasury asked for more information, which Eskom provided.
"We are still awaiting the outcome of the National Treasury’s probe," Mr Molefe said. "However, if they require any additional information from us, we will oblige, because we have nothing to hide."
Treasury spokeswoman Phumza Macanda said the department would not comment on the issue.
Mr Molefe said Eskom had asked the Special Investigating Unit to examine all its contracts in 2011 and in 2013 the unit concluded its inspection, with no adverse findings.
"Through this partnership, Eskom has demonstrated a serious commitment to deal with corruption and maladministration issues," he said.
"If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff or contractors, we will take appropriate action, including criminal prosecution if it is warranted."
Transnet group CEO Brian Molefe makes a presentation to Parliament’s trade and industry committee on the impact of administered prices. Picture: TREVOR SAMSON
ESKOM CE Brian Molefe expressed surprise on Monday at media reports that the Treasury intended to scrutinise all the utility’s coal supply contracts.
Mr Molefe said Eskom had already co-operated with an investigation by the department last year into the same matter.
Over the past year, the Sunday Times has carried several reports suggesting Eskom has favoured the Gupta family, who are close friends of President Jacob Zuma, in granting coal contracts.
Last year Eskom granted a contract worth R400m annually to Tegeta Exploration and Resources’ Brakfontein colliery. The Guptas are the major shareholders in Tegeta and Mr Zuma’s son Duduzane, through Mabengela Investments, also has an interest in the company.
In December, Tegeta bought Optimum Coal, which was in dispute with Eskom over penalties imposed for supplying subspecification coal to Hendrina power station under a contract that runs to 2018. Mineral Resources Minister Mosebenzi Zwane visited Optimum’s owners, Glencore, in Switzerland to help negotiate the deal.
Eskom has insisted it will continue to press its right to R2bn of penalties from Optimum under the new owners. However, it confirmed last month it would buy coal from Optimum, among others, for its Arnot power station, after the contract with Exxaro expired in December.
Mr Molefe said on Monday Eskom responded in June to a letter from the Treasury asking for information about all its existing coal and diesel contracts. It submitted those documents and co-operated with a visit by Treasury officials in July to scrutinise larger documents. In October, the Treasury asked for more information, which Eskom provided.
"We are still awaiting the outcome of the National Treasury’s probe," Mr Molefe said. "However, if they require any additional information from us, we will oblige, because we have nothing to hide."
Treasury spokeswoman Phumza Macanda said the department would not comment on the issue.
Mr Molefe said Eskom had asked the Special Investigating Unit to examine all its contracts in 2011 and in 2013 the unit concluded its inspection, with no adverse findings.
"Through this partnership, Eskom has demonstrated a serious commitment to deal with corruption and maladministration issues," he said.
"If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff or contractors, we will take appropriate action, including criminal prosecution if it is warranted."
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