Eskom accused of awarding tender to Gupta family

The Sunday Times claims the Gupta family’s company was awarded a R4 billion contract to supply coal.

President Zuma was joined by Minister of Public Enterprise Lynne Brown and Eskom acting Chief Executive Brian Molefe as he officially opened the Medupi Power Station Unit 6,  Liphalale, Limpopo on  30 August 2015. Picture: GCIS.

JOHANNESBURG - Eskom is being accused of awarding a coal-supply contract to a company owned by the controversial Gupta family, despite the company failing four quality tests.

The Sunday Times is reporting that Tegeta Exploration and Resources had been trying to secure the deal since 2011 but was rejected because of their substandard coal.

The paper says four Eskom executives were suspended for questioning the deal.

The paper claims the Gupta family's company was awarded a R4 billion contract to supply coal to Eskom's Majuba Power Station in Mpumalanga, over a 10-year-period.

After three failed bids, Tegeta was given the contract after a fifth test conducted on its coal found the product to be marginal.

However, the deal went sour, when Eskom suspended the agreement last month - due to poor quality.

The Sunday Times says it's investigation has also found Eskom's Matshela Koko, bypassed company protocol, when he stepped in to personally question staff about inconsistencies found in the test results.