This was suggested in the High Court last week when Mr Singh attempted to obtain a court order which initially was applied for to prevent the Middelburg Observer from publishing that a criminal case was opened by Eskom, but later was changed to a demand that the newspaper be ordered to obtain Eskom’s comment.
The case of the applicant was dismissed with costs, but not before Advocate Kevin Hopkins cast some doubt over the matter by suggesting that there was a split within Eskom and the investigation into Mr Singh and Just Coal may well be a conspiracy by a faction within the power utility.
“My client is not aware of any investigation and Eskom is still doing business with us; in fact, they are asking for more coal,” he argued. The Middelburg Observer has reliably learnt that an investigation of fraud and corruption has been opened by Eskom, who are apparently also investigating the matter internally.
“Eskom confirms that, as part of the investigation process, the Eskom Security Investigations Manager has been in contact with the newspaper to discuss these allegations. Eskom’s legal department is addressing the matter,” reads a media statement from Eskom, who were approached for comment.
The nature of the allegations under investigation remains uncertain. The New Age newspaper previously reported that Singh is being investigated for fraud allegedly related to the under-delivery of coal to Eskom at inflated prices.
According to the newspaper a sum of R5.8 billion is involved.
The Middelburg Observer spoke to several sources about the pending investigation.
A former plant manager who worked for the Joe Singh group of companies for several years, claimed that coal destined for Eskom was being mixed with discard coal at the Just Coal mine in 2015. He claimed that Eskom inspectors or rovers, who are supposed to verify the quality of coal destined for Eskom, were routinely bribed to turn a blind eye and those who were a little cheeky, would be replaced within days.
Video footage seen by Middelburg Observer seems to show coal at the mine being loaded from a conveyor belt onto a stockpile and from there directly onto CAMM TRANS trucks, without any Rovers in sight.
According to a mine manager CAMM TRANS are also Rotran trucks, which means they only travel to Eskom from mines, unless there is a contractual agreement otherwise.
“The coal needs to be stockpiled for rovers to inspect the quality and take samples, if necessary. Only then should coal be loaded onto trucks,” a mine manager in the area explained.
Erasmus however denies that due process was not followed. “The coal loaded onto the truck (in the video) is destined for Just Coal’s Eskom yard, at its mine, to undergo pre-certification prior to shipping to the relevant power station.
The Eskom rovers are not placed at the plant, but at the Just Coal Eskom yard and therefore the absence of rovers. The truck in the footage is not destined for Eskom at all.”
A group of truck drivers, currently involved in a CCMA dispute with CAMM TRANS, however claimed that coal loaded onto trucks at the mine was destined for Eskom. This was confirmed by a separate group of truck drivers:
“Ask us, we are the drivers. We are taking that coal to Eskom,” they insisted.
Three Eskom investigators who spoke to the Middelburg Observer on condition of anonymity confirmed that they have been tasked by Eskom to investigate Just Coal, but did not elaborate on the specific allegations being investigated or the amount of money allegedly involved.
Just Coal has denied any wrongdoing. “Any reasonable businessman involved in the coal industry will be alive to the fact that the amount of R5.8 billion worth in coal represents approximately R12 million ton of coal, which in itself is sensational and improbable.
It is denied that we were involved in fraudulent activities involving Eskom, in the quoted amount or any amount at all,” said Erasmus, on behalf of himself and Mr Singh.
He added that the former plant manager is a disgruntled individual who was dismissed by Just Coal for reasons not relevant hereto.
“It is not possible to provide sub-standard coal to Eskom and not be penalized or even stopped from making deliveries to them, because of a procedure that is applied by Eskom in respect of each and every load of coal delivered to them by Just Coal or any other contractor,” he stated, along with a list of procedures including that coal destined for Eskom is stockpiled onto pre-certified stockpiles at Just Coal’s Eskom yard and that the stockpiles are separately numbered, sampled and tested at a laboratory.
See the affidavit here:
https://www.citizen.co.za/middelburg-observer/wp-content/uploads/sites/92/2017/03/PDF_MOB_v2.pdf
Just Coal is just one of 27 mines that deliver coal directly to Eskom and have over the years consistently been doing business with power stations.
According to the New Age newspaper, Eskom is said to have appointed private investigators, Magma Risk Solutions, to investigate the allegations against Joe Singh and his business partner, Peet Erasmus.
