AfriBusiness takes legal step against Eskom re controversial “Gupta” coal contract

Business rights watchdog, AfriBusiness, today instituted legal steps against Eskom, after Tegeta Explorations & Resources was granted a R4 billion contract with Eskom to provide the Majuba Power Station with coal for the next ten years.

This comes only a week after AfriBusiness launched a separate application against the power utility in terms of the Promotion of Access to Information Act (PAIA) regarding bonuses that were paid to the power giant’s top management. 

Tegeta Explorations & Resources allegedly clinched the contract for the fifth time, after it was rejected in 2011 due to the bad quality of the coal. After the signing of the contract, four senior employees – who questioned the quality of the coal – were allegedly suspended. 

“Because of rumours of corruption and deceit as well as Eskom’s political ties to the ANC, such a contract should not even have been discussed. Taxpayers’ money is being used, therefore, a company like Eskom should at all times act transparent and impeccable,” Stefan Pieterse, National Spokesperson for AfriBusiness, said.

AfriBusiness’s legal action entails the procurement of the following information from Eskom:

- A list of all contracts between Eskom and Tegeta Explorations & Resources;

- A list of tenderers who applied for the contract;

- Written reasons why the contract was granted to Tegeta Resources;

- An agenda of the meeting where the tender was discussed;

- The minutes and resolutions when the tender was approved;

- Earlier analysis reports regarding the quality of Tegeta Explorations’ coal.

“We’ve given Eskom 30 days to provide the information to us. If our requests are met with non-cooperation, an internal appeal will be our next step,” Pieterse said.

Issued by Stefan Pieterse, National Spokesperson, AfriBusiness, 14 September 2015