TEGETA PAYMENTS

IN AN EFFORT to clarify the “ongoing misunderstanding” that Eskom had overpaid the “Gupta-linked” Tegeta R5 billion, Public Enterprises Minister Pravin Gordhan wrote to ANC Chief Whip Pemmy Majodina this week.

In his letter, Gordhan said that it was, in fact, Eskom who had claimed R5bn from Tegeta Business against coal not supplied by the Optimum mine.

Tegeta is a company owned by Oakbay which is a “Gupta-related” company. Tegeta owns the Optimum coal mine. The business rescue proceedings of the Optimum coal mine began in February 2018 when the Optimum board of directors resolved to place the company in voluntary business rescue.

The Optimum coal mine had been supplying coal to Hendrina power station. Gordhan said that Eskom had submitted a claim of approximately R5.5bn against Optimum in these proceedings.

The claim included a) R1.13bn (1.1 million tons) for the period September 2016 to January 2018 (pre-commencement of business rescue); b) a claim of R4.4bn (3.8 million tons of coal) for the period February 2018 to December 2018 (post-commencement of business rescue). However, in December 2019, at a meeting of creditors, the quantum of Eskom’s claim was challenged and it was resolved to refer Eskom’s claim for determination by an independent expert.

Gordhan said creditors contended that Eskom’s claim was inflated and as such Eskom should not have been afforded voting rights on the contingent and disputed part of its claim in Optimum.

Eskom’s disputed claim was determined by way of an expedited arbitration to be presided over by retired Judge Fritz Brand, jointly appointed by the creditors.

At the arbitration hearing held in March this year, the majority of creditors, Eskom and the business rescue practitioner reached an agreement that Eskom’s claim, both pre- and post-business rescue, was determined to be around R1.3bn.

During the arbitration hearing in March it was also agreed that the revised business rescue plan would be published in the coming weeks.

Gordhan said he would provide Parliament with further information as the process progressed.