Molefe grilled on ‘preferential treatment’ towards Guptas at Eskom

The Commission of Inquiry into State Capture yesterday heard how Eskom – under the stewardship of its former group chief executive Brian Molefe – gave Gupta-owned Tegeta preferential treatment compared to Glencore subsidiary Optimum Coal Mine (OCM).

In wrapping up his testimony for this week before Deputy Chief Justice Raymond Zondo, Molefe, who appeared irritated at commission evidence leader advocate Pule Seleka – who brought the Molefe-Gupta link question into the picture – the former power utility boss said he was being “unfairly punished” because of relations with the infamous Indian family.

Molefe, who will be returning to the commission on Monday, could not answer Seleka’s question on why, between January and October 2016, Eskom purchased coal from OCM via Tegeta to supply its Arnot power station.

Responded Molefe: “At the time, there were six suppliers requested by Eskom to supply coal to Eskom.

“I was not aware that the coal to Arnot came from OCM to Tegeta before reaching Eskom.

“At the time I was also sick in hospital. “I also know that six BEE [black economic empowerment] suppliers were contracted to supply coal to Arnot at R400 per ton – one of them being Tegeta.

“I didn’t see details of those agreements, with the situation at Arnot being in a crisis.”

Seleka said he found Molefe’s response “strikingly strange”.

Said Seleka: “There is a statement you made about the president [Cyril Ramaphosa] when he served as chair of OCM that he would have known what was happening with the transaction, but as Eskom group chief executive you did not know what was happening at Eskom and where Tegeta was getting the coal from.

“If price was an issue for Eskom, which you said was under financial strain, would it not have been better to go directly to OCM and pay a cheaper price to supply Arnot, than paying Tegeta, who had a mark-up?

“In terms of the January 2016 contract with Tegeta, Eskom paid R467 per ton and Tegeta was paying R448 per ton of coal from OCM.”

Molefe said he was “happy that Arnot was getting the coal as long as Tegeta was supplying at a price contracted with the procurement people”.

“It was immaterial where they got it from,” he said.

“Price is determined at willing-buyer, willing-seller which is how capitalism works.

“It happens all the time that people buy products and sell them at a higher price – nothing irregular.

“There were six suppliers and one of them was Tegeta,” said Molefe.

Said Seleka: “I am interested in Tegeta because of your relationship with the company and its owners.

“This dated back from Transnet and the IDC [Industrial Development Corporation], when you discussed establishing a private bank.

“From your explanation, you did not see eye-to-eye with Glencore, but you were playing soft gloves with Tegeta.

“The reason why the focus is on Tegeta is because of the Guptas.

“The impression created about this is that Eskom went out of its way to assist Tegeta financially and did so for the purpose of it acquiring OCM from Glencore.” Zondo’s focus on Eskom continues.

brians@citizen.co.za

For more news your way, download The Citizen’s app for iOS and Android.