EFF wants early report on Eskom

• Testimony on purchase of Optimum prompts party to call on portfolio committee to write up preliminary findings on state capture

The EFF in Parliament has proposed that the portfolio committee on public enterprises formulate a preliminary report on early observations from its inquiry into the capture of Eskom thus far. /

The EFF in Parliament has proposed that the portfolio committee on public enterprises formulate a preliminary report on early observations from its inquiry into state capture of Eskom thus far and come up with proposals to stop the looting of state-owned entities.

The proposal came when business rescue practitioner Piers Marsden detailed how Eskom made sure the Guptas purchased Glencore’s struggling Optimum Colliery, in the process, elbowing out Pembani.

His testimony came a day after former Trillian executive Mosilo Mothepu revealed how CEO Eric Wood made a financial killing from the December 2015 cabinet reshuffle, in which Nhlanhla Nene was fired as finance minister.

Marsden was the co-business rescue practitioner for Optimum between late 2015 and 2016. On Tuesday, he appeared before the portfolio committee on public enterprises’s state of capture inquiry into governance at Eskom, Denel and Transnet.

During his testimony, Marsden also disclosed that KPMG represented the Guptas and President Jacob Zuma’s son Duduzane when they approached the business rescue practitioners to table an “unsolicited” offer to buy the mine.

The politically connected Gupta family acquired Optimum in 2016 from Glencore in a R2.1bn deal seen to be at the heart of state capture.

The multinational commodities trader sold Optimum after the mine fell on hard times, largely because of a R2.1bn fine imposed on it by Eskom for supplying sub-par coal.

Marsden said he had tried to renegotiate the penalty, but “it became quite clear that a transaction involving a contract with Glencore as a shareholder would not succeed”.

He explained that there was a binding term sheet with a third party, Pembani, an established investment company, but that deal fell through. It is believed that Eskom played hard ball, making it difficult for Pembani to purchase the mine.

Marsden said he had found it suspicious that the little-known Tegeta had concluded a “prepayment” agreement amounting to R586m on the same day the company had indicated it was short of about R600m to pur- chase the mine.

“The quantum and timing, I would say, required further investigation … Tegeta was supposed to pay Glencore on April 13 [2016], [however] two days before the sale was due, [Oakbay CEO Nazeem] Howa phoned, [saying that] they were R600m short on the purchase agreement,” said Marsden.

Marsden was requested to approach banks for additional funding, but a consortium of banks indicated unwillingness to fund the shortfall. On April 14, the amount was paid, said Marsden.

Marsden said he had approached the Hawks, but there had been little movement.

ANC MP Pravin Gordhan said the key players included Brian Molefe, Anoj Singh, Ben Ngubane and Mineral Resources Minister Mosebenzi Zwane.

EFF chief whip Floyd Shivambu suggested the committee formulate a preliminary report.