Tegeta's coal failed 29 out of 30 tests by the SA Bureau of Standards, the state capture inquiry heard.Eskom's dodgy coal-supply contract with the Gupta family's Brakfontein mine came under the spotlight at the state capture inquiry on Monday when the utility's primary energy division boss, Daniel Mashigo, took the stand.
Mashigo told the commission that any deviation from the parameters of coal quality set out for each of Eskom's power stations could compromise the integrity of the plant. The question then remained as to whether Tegeta Exploration and Resources - owned by the Gupta family and Duduzane Zuma - put Eskom's Majuba power station at risk when it supplied poor coal for about three years.
Eskom irregularly awarded Tegeta's Brakfontein mine a lucrative decade-long contract, worth about R4.3bn, in 2015. Reports revealed that Tegeta started supplying coal to Eskom even though it had not met regulatory requirements and the agreement was concluded without a financial due-diligence report being completed.
The utility stopped receiving coal - which was also shown to be of poor quality - from the mine in February 2018 after Tegeta was placed in business rescue.
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Zondo commission: Eskom's Gupta contracts under the spotlight | Business | M>he StateCaptureInquiry will today hear details of how Eskom entered into a dodgy multi-billion rand coal contract with the infamous Gupta-owned Tegeta Brakfontein mine. but the contract still exists as does the contract with Ramaphosa's Shanduka. The contract with Shanduka is no different except it is Cyril doing the stealing I am all ears. I hope this time it's not the rubbish as evidence we have been subjected to. Whilst cost plus models drag on... Lifetime contracts.
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