State capture inquiry hears how Eskom treated Glencore differently to Tegeta

Testimony heard by the commission of inquiry into state capture on Friday suggested that Eskom had treated Glencore differently to Gupta-owned Tegeta when the two companies owned Optimum Coal Mine which supplied coal to the power utility.

Glencore sold its Optimum Coal Holdings (OPH) local assets to Tegeta Exploration and Resources in 2015.

Evidence leader at the commission, advocate Vincent Maleka proposed to today’s witness, contract manager at Eskom’s primary division Gert Opperman, that testimony the latter gave on Friday made it clear that “one set of owners of Optimum Coal Mine were treated fundamentally different to another set of owners by Eskom”, to which Opperman agreed.

Opperman agreed that one set of owners were treated differently by management of Eskom.
Tegeta was treated fairly compared to Glencore. #StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) March 8, 2019

“Do you also agree that because of that difference of treatment, the one set of owners, which is Glencore, was forced to take the radical decision of declaring a hardship which led to arbitration?

“Do you also agree that as a result of that difference in treatment, Glencore had to put Optimum Coal Mine into a business rescue?” Maleka questioned Opperman who agreed.

“Do you also agree that in regards to the new owner, Eskom extended favourable treatment totally different to that of Glencore?” Maleka enquired, asking Opperman to comment on whether he agrees that the power utility accommodated the financial and operating difficulties that the mine experienced when Tegeta took over its ownership.

“Definitely, yes,” Opperman responded.

“All of these difficulties which related to Optimum Coal Mine were clearly foreseeable when Tegeta took over that mine, they were not new, in fact, they were a continuation of the old problems?” Maleka asked and Opperman responded by saying that is correct.

The commission recently heard testimony on how a mineral resources minister, Eskom executives and a senior government official were among several powerful individuals who exerted undue pressure on Glencore to sell its OPH local assets to Tegeta Exploration and Resources in 2015.

READ MORE: How bigwig officials bullied Glencore to sell Optimum mine

(Compiled by Makhosandile Zulu)

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