Scopa want Eskom to explain Guptas-linked company deal

The power utility's R3.7 billion contract with Tegeta Exploration and Resources was under scrutiny when Treasury officials briefed Scopa.

FILE: Parliament chambers. Picture: GCIS.

CAPE TOWN - Members of Parliament (MPs) want Eskom to appear before a parliamentary committee to answer for a controversial coal supply deal with a Guptas-linked company.

The power utility's R3.7 billion contract with Tegeta Exploration and Resources was under scrutiny on Tuesday when Treasury officials briefed Parliament's standing committee on public accounts (Scopa).

A 2015 PricewaterhouseCoopers report tabled by Treasury officials, reveals the agreement was hastily signed and had irregularities.

Scopa's chair Themba Godi said: “We need to call Eskom in during the next two weeks so that we can hold them accountable for these things. I don’t think we will accept the pile of response that they’ve given.”

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)