Eskom signed R130m dud coal deal with Gupta firm

Eskom paid more than R130m to a Gupta-owned mining company for coal the power utility could not use, a National Treasury investigation has revealed, says a Sunday Times report. The Gupta family threatened to go to court last week to stop the Treasury from making public a report on the investigation. The report, which the Sunday Times says it has has seen, shows that Eskom signed a coal supply deal with Tegeta Exploration and Resources for a commodity they both knew was out of specification. The 10-year contract is worth R400m a year. Eskom CEO Brian Molefe received a report – dated 12 April – and the Treasury asked him to comment on it and address issues raised. Treasury chief procurement officer Kenneth Brown gave the power utility until 30 April to respond, but two government sources reportedly told the newspaper Eskom did not respond.