Sunday Times

Eskom official suspended in deals scrutiny

- By SABELO SKITI

● Eskom’s internal investigat­ion into more than 5 000 lucrative contracts at the state power utility has claimed another scalp, that of senior general manager Ayanda Nteta.

Nteta, of Eskom’s primary energy division, has been suspended, the utility confirmed on Friday.

The suspension is related to the Guptaowned Optimum Coal Mine’s controvers­ial supply contract to the Hendrina power station.

“Eskom can confirm that its senior general manager for primary energy, Ms Ayanda Nteta, has been suspended pending an investigat­ion into coal supply for the Hendrina power station,” said Eskom spokesman Khulu Phasiwe. “Due to the current sensitive stage of the internal investigat­ions, Eskom is not in a position to make any further comments on these cases until the probe has been completed.”

The Sunday Times understand­s that Nteta, who was charged on Thursday, is accused of granting the then Gupta-owned company Tegeta a three-month extension of temporary relief in coal quality (allowing a different abrasivene­ss index to what was contracted for) without following process and getting board approval.

A source said Eskom viewed the act in such a serious light that it was seeking Nteta’s dismissal.

The extension Nteta granted, between last August and October, followed one granted between June 2016 and March last year. The board decided in December to make the alteration permanent.

Nteta declined to comment this week, saying company policy prevented her from speaking to the media.

Phasiwe said the investigat­ion, being conducted by the new Eskom board’s audit and risk committee, had looked into over 80% of 160 contracts valued at more than R1-billion, and 5 110 contracts valued at less than R1billion.

“Once the investigat­ions are completed, and there is evidence of misconduct, we will institute disciplina­ry action against such employees,” he said.

Gupta coal supply contracts took centre stage during the investigat­ion by parliament’s portfolio committee on public enterprise­s into the “capture” of Eskom by the Guptas. These contracts included a 10-year, R4-billion deal for Brakfontei­n coal mine, a R578-million coal prepayment and a R1.6billion guarantee that helped the Gupta family buy Optimum from Glencore.

Glencore was forced to put the mine into business rescue after Eskom refused to renegotiat­e the price of supplying coal, which ironically increased for Tegeta.

In her report on state capture, former public protector Thuli Madonsela noted Eskom’s hardline stance on Glencore as one of many actions taken to benefit the Guptas.

The National Treasury’s investigat­ion of some of the deals recommende­d that criminal action be taken against former Eskom chief financial officer Anoj Singh, former CEO Brian Molefe, and former head of generation Matshela Koko, for receiving gratificat­ion in respect of contracts.

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