Brown launches fresh probe into Tegeta coal deals

Another state institution is to take a deep dive into how Gupta-owned Tegeta Exploration and Resources managed to score multibillion-rand coal supply contracts with Eskom despite issues with its coal.

A PwC report, commissioned by Eskom and reviewed by the Treasury, shows that Tegeta started supplying coal to the power utility before the company had cleared regulatory requirements including having a water-use licence and adequate infrastructure to test the quality of its coal.

The Special Investigating Unit is now set to investigate Eskom’s coal supply contracts dating back to 2007, Public Enterprises Minister Lynne Brown told the standing committee on public accounts on Tuesday.

The committee has taken a keen and active interest in Treasury’s reviews of Eskom’s coalsupply agreements, as well as those being conducted at Transnet, South African Airways, the Passenger Rail Agency of SA and the SABC.

Brown appeared before the committee to explain her department’s position on the issues surrounding Eskom.

Eskom board chairman Ben Ngubane and CEO Brian Molefe were also at the hearing.

Molefe said Tegeta’s coalsupply agreements were concluded before he became CEO.

Ngubane pointed out that Eskom had commissioned the PwC probe in the first place.

Asked by DA MP Natasha Mazzone if he was instructed to approve the R659m prepayment to Tegeta by Eskom for pre-paid coal, Molefe said he was not present at the meeting at which this was approved.

Brown’s commitment to the probe into the power utility’s coal-supply contracts comes as Eskom asked Treasury for an extension to submit documents as part of Treasury’s review.

Treasury has given its draft report — based in source documents from Eskom — to the power utility, the office of the public protector, the auditorgeneral and Tegeta — all deemed interested parties in the matter — for comment.

For most of the committee meeting, Molefe and Ngubane ducked hard questions.

IFP member of Parliament Mkhuleko Hlengwa asked how Tegeta was able to take over the Optimum coal mine, despite gaps in its own operation requirements.

ANC MP Thapelo Chiloane said the committee would wait for the Treasury’s final report before deciding whether to let Eskom off the hook.