Treasury: Tegeta given Eskom contract despite not meeting standards

One concern raised in the document is that a health and safety evaluation was only conducted eight days after the contract was signed.

FILE: Ajay Gupta. Credit: YouTube

CAPE TOWN – Parliament has heard that a Gupta-owned company was given a multi-billion rand coal-supply contract despite indications that its mine was not up to standards.

Eskom’s R3.7 billion deal with Tegeta Exploration and Resources was under scrutiny on Wednesday when Treasury officials briefed the Standing Committee on Public Accounts.

The officials presented a 2015 PricewaterhouseCoopers report that reveals irregularities and the flouting of Eskom and possibly Treasury procedures.

Treasury officials say the PricewaterhouseCoopers report suggests Tegeta’s Brakfontein colliery in Mpumalanga was not up to the task of supplying coal to Eskom.

One concern raised in the document is that a health and safety evaluation was only conducted eight days after the contract was signed.

It was also found that the company supplied coal which did not meet specification standards.

Treasury’s Solly Tshitangano says the auditing firm made several recommendations.

Tshitangano told Members of Parliament that Treasury rejected a request by Eskom to expand Tegeta’s contract by a further R2.9 billion and that it is conducting its own review of the matter.

(Edited by Leeto M Khoza)