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Zondo not buying Daniels didn’t have power to advise board on Tegeta prepayment

She was been testifying before the state capture commission on Friday on a R1.68 billion coal purchase prepayment.

A YouTube screengrab of former Eskom secretary Suzanne Daniels at the state capture commission on 7 December 2020.

JOHANNESBURG - Former Eskom head of legal and compliance Suzanne Daniels appears to have failed to convince Deputy Chief Justice Raymond Zondo that she didn't have the power to advise executives and the board regarding a guarantee issued to Tegeta.

She was been testifying before the state capture commission on Friday on a R1.68 billion coal purchase prepayment.

Daniels testified from a remote location via video link.

READ: Daniels says Koko misled Zondo Inquiry over prepayment to Optimum Coal Mine

Zondo put it to her that it didn't make sense that the board approved the purchase of coal from a company that didn't own a mine, but she said she didn't want to second guess executives.

“About 12 or so board members some of whom I think are quite qualified and they said they either didn’t see this in the resolution or they didn’t think it meant anything and the company secretary who is legally qualified says she saw it but she didn’t think it was he place to give legal advice to the officials.”

Zondo put it to Daniels that the board approval to buy coal from proposed owners of the Optimum Mine, Tegeta, was like buying a car from a person who doesn't own it.

And he asked Daniels why she allowed it to happen, she said she drafted the correct documents but executives including Matshela Koko and Anoj Singh changed them.

“These things were removed by the executives in the final submission.”

Zondo asked: “What would they have done?”

She responded: “It would have given the board a fuller appreciation of what the transaction was about; that Oakbay/Tegeta was buying Optimum at the time.”

Daniels said she only found out about crucial details of the transaction at a later stage in the media.

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