Cyril Ramaphosa must provide answers on Eskom-Gupta deals

13 September 2015

Newspaper reports today confirm that state-owned and state-controlled power utility, Eskom, bent over backwards to ensure that the politically-connected Gupta family were awarded a coal deal to the value of R4 billion. 

It is incumbent on Cyril Ramaphosa, as head of government’s “war room” on the energy crisis, to provide a full and detailed explanation as to how this occurred under his watch, whether he was informed about the deal, and what role he played in ensuring it was rubberstamped. I will today be writing to Mr Ramaphosa to ask questions in this regard.

Gupta-owned Company, Tegeta Exploration and Resources, astonishingly landed a R4-billion deal to supply Majuba power station in Mpumalanga with coal for the next 10 years, despite having been rejected since 2011, due to their poor standard of coal. The company was awarded the deal on its fifth attempt, after failing a coal quality test four times - at a cost of R100 000 per test to Eskom. After the deal was concluded, four senior employees were controversially suspended after they questioned the quality of the Gupta coal.

The analysis reports following the tests show the coal to be supplied as “marginal’, raising questions as to why such dicey coal was chosen over other more suitable options.

It is a well-known fact that the Gupta family has strong ties to the ANC, and President Jacob Zuma in particular. From the chartering of Gupta-owned aircrafts and the infamous “Guptagate”, to inflated expenditure by government on advertisements in the Gupta-owned newspaper The New Age, one thing is clear – the Guptas come first, and South Africa comes second. 

Following these developments, I will also be requesting answers to the following pertinent questions from Cyril Ramaphosa:

How many contracts does Gupta-owned Company, Tegeta Exploration and Resources, have with Eskom;

What is the nature, value and details of such contracts;

Have all said contracts followed the prescribed tender process;

If not, what are the reasons for deviation from the prescribed tender process;

What other financial interests, directly and indirectly, do the Guptas have in Eskom.

South Africa has a right to be assured that every cent of public funds is spent to further the lives of every citizen. Our country can ill-afford to have the Guptas or any other politically-connected individuals making a killing on the back of ordinary, hardworking and already pressurised South Africans.

Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, September 13 2015