Eskom to comply with Treasury recommendations over Tegeta contracts

Treasury has reportedly blocked the power utility from expanding two coal supply contracts that would have seen the Gupta-owned company charging millions more.

FILE: Eskom building. Picture: EWN

JOHANNESBURG – Eskom says it will comply with any recommendations from National Treasury regarding an investigation into the awarding of contracts to Tegeta Exploration and Resources.

Treasury has reportedly blocked the power utility from expanding two coal supply contracts that would have seen the Gupta-owned company charging millions more.

Eskom had previously denied claims that proper procedures were not followed when signing the agreements.

The City Press says the leaked report details how Eskom’s request to expand the Tegeta-owned Brakfontein Colliery’s 10-year coal supply by another R2.94 billion was blocked by Treasury last year.

This was an increase from the company’s original agreement to supply coal to the Majuba Power Station in Mpumalanga.

The report further states that Treasury stopped the utility from expanding a separate two-month contract to supply coal to the Arnot Power Station for six months.

Eskom’s Khulu Phasiwe says they have sent the parastatal’s response in the matter to Treasury and they are waiting for a reply.

“We’ve submitted tons and tons of documentations like they had required, so we're just going to wait for them to issue the final report.”

Phasiwe says that once Treasury has replied Eskom will make its response public.

(Edited by Leeto M Khoza)