ANC steps into Eskom’s Treasury fight

By Drum Digital
30 August 2016

The ANC says it will call an urgent meeting of the Ministry of Finance and departments of public enterprises and energy to deal with Eskom’s alleged irregular contracts.

By Aphiwe Boyce

Addressing the media after yesterday’s meeting of the party’s national working committee, ANC Secretary-General Gwede Mantashe said the disagreements between Eskom and the National Treasury were not good for both the economy and the country’s image. Mantashe said it was unfortunate that Eskom and the Treasury had also taken their disagreements into the public domain, on matters relating to tenders at the state-owned enterprise.

“We want to convene a meeting between the ministries of finance, public enterprises and energy to decisively deal with this matter in a manner that promotes public confidence,” he said. “It’s ill-disciplined of a minister to talk out of turn.”

Mantashe added that the ministers need to deal with this matter urgently and not through the media.

This all relates to an investigation the Treasury is conducting into Eskom’s coal procurement from Gupta-owned mining firm, Tegeta Exploration. The Sunday Times reported that Eskom had paid around R130 million for coal that it didn’t actually use.

But the National Treasury said its efforts have met resistance. “Since April, the National Treasury has made several attempts to get information from Eskom,” its statement read.

However the public electricity supplier denied this. “Eskom is shocked and perplexed that the National Treasury has chosen to issue a statement that it has issued on the Tegeta contracts as they relate to Eskom . . . National Treasury started an investigation into Eskom contracts with Tegeta in July 2015. Eskom wants to reiterate that it has been cooperating with National Treasury.”

Meanwhile, Minister of Public Enterprises Lynne Brown has called on to hand over documents to the Treasury today. However, the minister added that there's no proof that the coal was sub-standard or that Eskom paid Tegeta Resources in advance.

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