Parly told of irregularities in Eskom, Gupta-owned company contract

MPs have been told the 2015 Tegeta coal-supply contract worth R3.7 million was hastily signed and contained errors.

Picture: EWN.

CAPE TOWN - Parliament has heard of irregularities and discrepancies in a coal supply contract between Eskom and a Gupta-owned company.

Treasury officials briefed Parliament's Standing Committee on Public Accounts on Wednesday on the power utility's controversial coal deals with Tegeta Exploration and Resources.

Quoting a 2015 Eskom-commissioned report by PricewaterhouseCoppers, the officials told Members of Parliament (MPs) several procedures were flouted.

MPs have been told the 2015 Tegeta coal-supply contract worth R3.7 billion was hastily signed and contained errors.

Treasury official Solly Tshitangano says PricewaterhouseCoppers identified inconsistencies in the deal because Tegeta's Brakfontein Colliery did not comply with Eskom's own criteria.

“Brakfontein Colliery was in construction or development phase and made use of a subsidiary company with limited coal mining experience.”

Tshitangano has told MPs the auditing firm recommended a technical and legal review of the contract, but that's still outstanding, nearly two years later.

(Edited by Winnie Theletsane)