Eskom: Our version wasn't considered in State of Capture report
Eskom says all transactions referred to in the Public Protector's report complied with the utility's procurement policies.
The utility held a special briefing today to discuss aspects of the report.
Yesterday CEO Brian Molefe wept as he defended Eskom’s decision to prepay Gupta-owned company Tegeta for coal.
The report revealed that Eskom helped Gupta-owned company Tegeta take over Optimum mine by agreeing to a R600 million pre-payment for coal.
This afternoon board member Pat Naidoo insisted that pre-paying suppliers is common practice.
“We talk to our investors 24/7, we talk to our customers, we’ve got real-time duty and suddenly we are hit with this. The findings, observations are very sad and finally the Eskom board is considering taking the report of the Public Protector on review.”
Eskom has disputed the report’s findings, saying that all transactions complied with the utility's procurement policies.
Naidoo went through a presentation today showing Eskom's version of the controversial deal made with Tegeta.
He reiterated what CEO Brian Molefe said yesterday - that the deal was above board, complied with Eskom's procurement policy and helped the utility avoid load shedding during a time when it desperately needed quality coal.
Naidoo says all this information was provided to the Public Protector.
Eskom will consider taking the report on review.
Read the Public Protector's full 'State of Capture' report below:
Eskom maintains its R600 million prepayment deal with Tegeta helped save South Africa from load shedding last year.
This particular deal came at a time when Eskom needed a supplier for quality coal at a reasonable price after a fall out with Glencore, which wanted to be paid more.
Naidoo says the utility made the right decision.
“There was significant value in concluding these various business transactions, and you all know load shedding suddenly stopped. It was a miracle; it just stopped.”
He also emphasised that all details about board members and their interests as well as Eskom’s transaction were supplied to the Public Protector.
“I think it was about 160 boxes of this information, we sent a truck load of this stuff.”