Cape Town – Finance Minister Malusi Gigaba undertook to announce the details of National Treasury's investigation into the coal contracts Eskom entered into with Gupta-linked Tegeta as soon as a report has been finalised.
In response to a Parliamentary question from Democratic Alliance spokesperson on finance David Maynier, Gigaba said National Treasury has appointed two consulting firms to assist with the investigation – Falcon Research and Consulting Services, and Israel Monnapula Dikgwatlhe.
Both consulting firms have been appointed to review the coal contracts, to establish if Eskom complied with supply chain management norms and standards and analyse the quality of coal delivered to Eskom by Tegeta Exploration and Resources - a company owned by the Gupta family and President Jacob Zuma's son Duduzane.
According to Gigaba, Falcon is charging R184 500 for the investigation, while costs for services rendered by Israel Monnapula Dikgwatlhe amount to R178 250.
Eskom’s coal contracts with Tegeta are the subject of a number investigations. In September 2015, the power utility approached auditing firm PricewaterhouseCoopers to review the deals that were made. The contents of the PwC report were discussed at Parliament’s standing committee on public accounts recently.
At the meeting Solly Tshitangano, chief director of supply chain governance at National Treasury, told MPs that the report found Eskom had flouted supply chain management procedures. The contract for the supply of coal also contained discrepancies and was poorly drafted, among other things.
National Treasury initiated its own investigation into the coal contracts in November 2015 and the final draft report emanating from these investigations was handed to Eskom on April 5, Gigaba said.
In addition, Public Enterprises Minister Lynne Brown also recently announced that a full-scale investigation into the coal contracts dating as far back as 2007 will be initiated with the help of the Special Investigating Unit and a retired judge.Read Fin24's top stories trending on Twitter: Fin24’s top stories