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SIU gets court order to set aside Eskom, Tegeta multibillion rand contract

The court has also given the green light for the SIU to institute legal proceedings against the formerly Gupta-owned company, which is facing a barrage of corruption allegations linked to Eskom.

FILE: The SIU said the power utility was co-operating with its investigators.Picture: Supplied.

JOHANNESBURG – The Special Investigating Unit (SIU) has on Friday obtained an order from the High Court in Pretoria setting aside a contract between Eskom and mining company Tegeta worth R3.7 billion.

The agreement dates back to March 2015 and was meant for the supply of coal to Eskom's Majuba power station for a period of 10 years.

This deal has now been declared invalid and of no legal force.

The court has also given the green light for the SIU to institute legal proceedings against the formerly Gupta-owned company, which is facing a barrage of corruption allegations linked to Eskom.

SIU spokesperson Kaizer Kganyago said the power utility was co-operating with its investigators.

“We give them briefings; we have meetings with them and we know where things are. We are comfortable that we will go through with our investigation. This is just but one, there are many others that we are dealing with. You might find that many of the contracts that are coming we might be in the position to deal with them.”

Last year, Eskom's Gert Opperman told the state capture commission when he knowingly approved an irregular pre-payment deal between Tegeta and the power utility, he genuinely thought the power utility would get value out of the arrangement.

The payment was made even though Tegeta had not provided any services to the power utility.

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