OVERVIEW: #StateCaptureInquiry: Mashigo gives graphic description of coal sampling at Eskom

2019-02-26 10:03

The judicial commission of inquiry into state capture hears testimony from Eskom's primary energy acting General Manager Daniel Mashigo.

WATCH LIVE: State Capture Inquiry 

(Courtesy of SABC) 

Deputy Chief Justice Raymond Zondo

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Last Updated at 05:16
26 Feb 15:52
The commission is scheduled to resume tomorrow at 10:00.

26 Feb 15:49
Mashigo concludes his testimony.

26 Feb 15:42

26 Feb 15:40
Hofmeyr says Mashigo has provided a spreadsheet of the impact on Eskom since Tegeta was placed under business rescue.

26 Feb 15:35
Mashigo says penalties are applied if suppliers cannot deliver what is stated in their rectification contract for the rectification period.

26 Feb 15:35
The supplier would come to Eskom and say that they undersupplied X amount of coal, and if Eskom is happy with the rectification plan on part of the supplier, they accept the rectification plan for the period of time that they need to deliver, says Mashigo.

26 Feb 15:15
Hofmeyr moves on to the variation of the contract that was sought in August 2016, when Eskom was required to approach treasury in order to increase what coal they would be receiving from Tegeta.

26 Feb 15:12
Hofmeyr refers to SGS, analysed in 2015. 

26 Feb 15:07
 Hofmeyr reads sections of a statement by a Eskom engineer Kwenza Magwaza who says Koko instructed him to use hindle laboratory which will analyse Brakfontein coal.

26 Feb 14:56
Mashigo says they were working on a project to enhance their assurance controls to monitor coal qualities. To avoid malfeasance by mines, drivers and labs. 

26 Feb 14:53
Mashigo says the loss of Van Der Riet to Eskom had a massive impact because of his expertise and what his team was investigating.

26 Feb 14:47

26 Feb 14:46
Hofmeyr says that Eskom representatives were to witness coal sampling, yet it was cancelled.

26 Feb 14:45
Any involvement of Koko and Daniels in the Brakfontein coal quality issue is unusual, says Mashigo.

26 Feb 14:30

26 Feb 14:26

26 Feb 14:25
Financial evaluation is one of the critical components when awarding a contract, according to Mashigo.

26 Feb 14:22
All contract managers had a "risk allowance" in case they meet problems that would exceed the value of the contract, says Mashigo.

26 Feb 14:21
Mashigo says the coal supply agreement had a maximum extension of six months.

26 Feb 14:17

26 Feb 14:09
The commission resumes.

26 Feb 13:01
The commission adjourns for lunch and will be back at 14:00.

26 Feb 12:58

26 Feb 12:54

26 Feb 12:50

Hofmeyr wants to know how Majuba identifies that there is a problem with coal.

Mashigo says "the boiler would identify that".

26 Feb 12:50

26 Feb 12:45
Hofmeyr moves on to technical compliance requirements: The contract coal is to be supplied, must at all times comply with Eskom's technical and coal supply requirements. If these requirements are not compliant for supply, Eskom reserves the sole and exclusive right to call for a material breach.

26 Feb 12:38
Hofmeyr is reading the protection clause: It is specifically recorded that if the Conditions Precedent are not fulfilled ... the remaining provisions of this agreement shall never become effective.

26 Feb 12:27
Mashigo says the 2008 mandate was set at a volume of 490.8 million tonnes of coal, and the duration for the contract was until March 2018.

26 Feb 12:23

26 Feb 12:20

26 Feb 12:15
Hofmeyr moves onto the Brakfontein contract.

26 Feb 12:12
Mashigo says the sampling process is prone to error.

26 Feb 12:09
Mashigo continues his description. 

26 Feb 12:04
Mashigo now gives a graphic description (diagram) of how sampling works so that the quality of the coal can be determined.

26 Feb 12:03
The quality of coal is important because poor quality undermines the work of the plant and deteriorates its ability to perform optimally, says Mashigo.

26 Feb 11:59
Mashigo goes into detail the effects of poor coal quality on Eskom's plants: More emissions and less generated power. 

26 Feb 11:47
According to Mashigo, Brakfontein is remote compared to many other power stations. Coal is transported by road.

26 Feb 11:42
Hofmeyr says Mashigo will also touch on how Tegeta dictated methods it wanted Eskom to respond to its contract applications.

26 Feb 11:33
We are back in session. Mashigo continues with his testimony.

26 Feb 11:14
The commission has adjourned for 15 minutes.

26 Feb 11:08

26 Feb 11:02
Mashigo says Eskom's Majuba power station received 50% of its coal supply from the Brakfontein mine.

26 Feb 10:58
It should be noted that Tegeta's Brakfontein mine was found to be supplying Eskom with sub-standard coal in 2017.

26 Feb 10:58

26 Feb 10:56

26 Feb 10:52
Mashigo takes Zondo through the process of acquiring coal and how it is distributed to various power stations.

26 Feb 10:44
Mashigo confirms that this year will be his 26th year at Eskom.

26 Feb 10:44
Mashigo in 2015 was the acting general manager for coal operations at Eskom – a function that executes the contract and supply to various stations.

26 Feb 10:36
Mashigo is now being sworn in.

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