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Eskom refutes claims of mistakenly paying R5bn to Tegeta

Parliament’s standing committee on appropriations said it would call Eskom back to account on the alleged payment error.

Picture: EWN

JOHANNESBURG - Eskom on Friday said that it did not erroneously pay R5 billion to a contractor.

Parliament’s standing committee on appropriations said that it would call Eskom back to account on the alleged payment error.

Earlier this week, it was reported that Eskom had overpaid an unnamed contractor and was now battling to get the money back.

According to the committee, during its oversight to Eskom’s Megawatt Park in October last year, Eskom management briefed the committee on many things, including the overpayment.

But the power utility said it hadn’t paid R5 billion to anyone by mistake.

"What did happen was that Eskom in 2016 signed a contract with Tegeta Rescources and Exploration for coal supply contract of R3 billion a year over 10 years. During the first two years of Tegeta delivering the coal, Eskom paid for coal worth R1.3 billion but there were penalties that were levied by Eskom on Tegeta for various failures, including for failing to provide the specified and agreed coal specifications. That is how the claim ballooned to R5 billion," Eskom spokesperson Sikonathi Mantshantsha explained.

The committee said the over R1 billion that was paid to Tegeta was being claimed by Eskom.