Eskom backs Guptas



September 1, 2016
Eskom backs Guptas


Molefe says there is no reason to stop working with Tegeta.

Eskom boss Brian Molefe says there is no legal reason for them to stop dealing with businesses owned by the Guptas.

Molefe was briefing Parliament’s portfolio committee on public enterprises yesterday, where he was grilled for failing to comply with a Treasury request to submit documents regarding Eskom’s coal contract with the Gupta-controlled mining company, Tegeta Exploration and Resources.

Eskom submitted the documents on Tuesday after an instruction from Public Enterprises Minister Lynne Brown.

This after Treasury, headed by Finance Minister Pravin Gordhan, on Monday slammed Eskom for dodging them.

Its alleged Eskom spent over R130 million on poor quality coal from Tegeta, an allegation Molefe denies.

Molefe said he could not “blacklist” companies owned by the family, whose close ties with President Jacob Zuma has been in the spotlight.

“Not to do business with Tegeta would require us to blacklist them and there is a process in the PFMA [Public Finance Management Act] for blacklisting suppliers and in terms of that process we would have to inform them that we cannot do business with them and provide reasons why we should not be able to do business with them and therein lies my problem,” he said.

“I do not know what the reasons are, other than gossip and innuendo. Until we can get a reason to blacklist them, if they bid for a transaction, if they apply to do work with us, we must consider it.”

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