Treasury blocks Zuma’s son and Guptas from cashing in on R4bn Eskom deals – report

Treasury has prevented Eskom from extending any further contracts held by Tegeta, a company owned by the Guptas and President Jacob Zuma’s son, Duduzane Zuma.

According to City Press, a report compiled by Treasury found that the department prevented Eskom from extending Tegeta-owned Brakfontein’s contract to supply coal over 10 years by a further R2.94 billion. Treasury also barred the electricity parastatal from extending a contract with Optimum coal mine for an additional six months, resulting in an increase from R855 million to over R1 billion, while the report also revealed that substandard coal was delivered to Majuba power station in Mpumalanga by Tegeta.

The report has also questioned why Tegeta enjoys favourable treatment by not enforcing key conditions of the coal-supply contract, why former Eskom CEO Brian Molefe “gave assurance that the Brakfontein colliery supplied and continues to supply coal that conforms to the coal-supply agreement, despite ample evidence of non-compliance and an investigation into whether fruitless and wasteful expenditure was conducted by Eskom in making payments to Tegeta for coal from Brakfontein and Optimum”.

“Even if the quality issues had been sorted out, Treasury would not have agreed for Eskom to go ahead with expanding the contract. Eskom would still have needed to tell Treasury why it was not able to go out on tender and appoint another company.

“I don’t see how Eskom would have convinced the Treasury that the Brakfontein colliery is the only company that could supply it with coal,” a source told City Press.

Eskom spokesperson Khulu Phasiwe said she was shocked the report had been leaked as perceptions would now become a reality in the eyes of the public.

Phasiwe added that Eskom was concerned the draft report was leaked without it being afforded the opportunity to respond to the allegations.

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