Gigaba ‘pushed’ for Eskom millions to go to Guptas
EX-PUBLIC enterprises minister Malusi Gigaba pushed hard for the Gupta-linked newspaper The New Age to be funded by Eskom in a multimillionrand sponsorship deal, the Zondo Commission of Inquiry heard yesterday.
Eskom’s acting general manager for marketing and branding Paul Pretorius said he was virtually forced into signing off on Eskom sponsoring The New Age (TNA) business breakfast sessions. Pretorius said Eskom signed a contract that assured it sponsored four of the TNA’s business breakfasts, which allegedly cost the struggling power utility R1 million per session. They were broadcast on SABC Morning Live and showcased discussions with government officials.
Many of the breakfasts were funded with government money from various state-owned enterprises which included Transnet and Eskom. TNA apparently contributed little to no money to the sessions.
Pretorius said his division was approached by TNA to fund the breakfasts in 2012 and also to spend on advertising in the newspaper. He said he declined the offer immediately, as the deal involved plenty of money and little assurance of value for Eskom. He said his other concern was that TNA was not registered with the Audit Bureau of Circulations.
Pretorius said after rejecting the offer, he thought the matter was put to bed but was later instructed by his superior, Chose Choeu, Eskom’s former divisional executive for corporate affairs, that he had to sign the deal with TNA.
Pretorius said Choeu was not interested in his objections and instead insisted that the instructions had come straight from the minister (Gigaba). Recalling Choeu’s instruction, Pretorius remarked: “He said, ‘Pieter, this is an instruction, this comes from the minister (Gigaba).’ He said, ‘Brian Dames said you will do this.’ That implied that it came from the top. Some of the minister’s staff were included in emails about TNA.”
Eskom is also said to have paid R7.1m for the business breakfasts and R4m for advertising in TNA. Gigaba previously submitted a responding affidavit to the commission wherein he denied ever interfering and encouraging Eskom employees to sponsor TNA.
In a statement read out by evidence leader advocate Michael Mbikiwa, Gigaba said: “I deny that I ever gave such an instruction that would amount to me interfering with the operational matters at Eskom as a shareholder.”
But Pretorius disagreed with Gigaba’s version, as Gigaba had often meddled in matters at the power utility, he said adding: “I would say that it is untruthful of the minister, as he had interfered in many matters at Eskom.” The third contract apparently cost the power utility over R40m.