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Eskom oil deals flow to Minister’s lover’s firm

Publish date: 19 October 2017
Issue Number: 584
Diary: Legalbrief Forensic
Category: State capture

Public Enterprises Minister Lynne Brown’s long-time lover and a close associate scored lucrative oil tenders from Eskom despite having no expertise in the industry, says a Sunday Times report. E Smart Solutions, owned by Brown’s partner, Ingrid Tufvesson, and Michelle McMaster, the mother of Brown’s former personal assistant, Kim Davids, scored two contracts worth R1.2m in just five months this year. The other director is Kim’s sister, Serisa Bernice Davids. The first contract, for R423 225, was signed on 27 January, a few weeks after Brown appointed Matshela Koko acting CE. The second, worth R827 292, was awarded on 25 May. The report says the revelation reinforces concerns that Brown has been protecting Koko – who in turn allegedly tried to buy her favour by channelling the contracts to Tufvesson’s company. Tufvesson, a higher education academic and transformation consultant, admitted that E Smart Solutions had no experience in the oil industry and was only registered to deal with academic projects. The two contracts are to supply oil to Eskom’s transformers at 10 power stations. Michelle McMaster – a close associate of Brown who has worked with the Minister in Western Cape ANC since 2010 – confirmed that Kim and Serisa are her daughters. Brown forced Kim to resign as her personal assistant in August after she was exposed as having visited the Guptas’ mansion in Dubai and staying at a luxury hotel at their expense in December 2015. Tufvesson admitted that she had been part of E Smart Solutions, but said she had been trying to resign since December and knew nothing of its business dealings. Brown’s spokesperson, Colin Cruywagen said it was ‘ridiculous to think the Minister had anything to do with the awarding of contracts by Eskom to E Smart Solutions’.

Full Sunday Times report (subscription needed)

The DA plans to refer Brown to the Public Protector. DA spokesperson for public enterprises Natasha Mazzone said this week the party would also refer Brown to Parliament’s ethics oversight committee, notes a Fin24 report. Mazzone said that Brown had seemingly allowed her personal relationships to influence the awarding of contracts. In a statement, Tufvesson said she had not earned anything from any Eskom-related deals or contracts from eSmart Solutions. She said she had tried to resign from the company in 2016, and eventually resigned on Friday 13 October. Tufvesson also denied any link to the Guptas, saying she ‘never met them personally, have not had any dealings with them, and have not been approached in any way, shape or form on their behalf’. She also threatened legal action against McMaster in an attempt to clear her name, a report in Die Burger notes. She called on McMaster to confirm her statements that she had nothing to do with the Eskom transactions. ‘Her silence leaves me with no alternative but to get legal advice to clear my name of any possible abuse by her company,’ she is quoted as saying.

Full Fin24 report

Full report in Die Burger (subscription needed)

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