Treasury forensic investigation into Tegeta to answer questions on Eskom deal

Treasury says the probe will establish if correct processes were followed when contracts were issued to Gupta-owned Tegeta Exploration and Resources.

JOHANNESBURG – Finance Minister Malusi Gigaba says the forensic investigation into the Tegeta report will answer all questions about the Gupta-owned company’s coal supply agreement with Eskom.

On Friday, the minister directed National Treasury to start the probe into the damning report which was handed over to the standing committee on public accounts.

It deals with Tegeta’s acquisition of Optimum Coal Mine and its coal supply agreement with the power utility.

Treasury spokesperson Mayihlome Tshwete says the probe will establish if correct processes were followed when contracts were issued to Gupta-owned Tegeta Exploration and Resources.

“And whether or not certain elements of that contract were within the PSMA.”

A damning PricewaterhouseCoopers report, commissioned by Eskom and reviewed by the Treasury, shows that Tegeta started supplying coal to the power utility before the company had cleared regulatory requirements.

Those requirements included having a water-use license and adequate infrastructure to test the quality of its coal.

Tshwete said: “The interim report has been completed and the recommendations of that report is that there should be a forensic investigation.

“So the minister has directed the director general to appoint a forensic investigator to get to the bottom and answer all those questions that need to be answered.”

He says the minister expects the probe to answer all questions around the deals which include how Tegeta managed to score multibillion-rand coal supply contracts with Eskom, despite issues with its coal.

It’s understood the Tegeta report recommends that the forensic probe examine whether officials at the power utility unfairly favoured the controversial family’s company.

(Edited by Leeto M Khoza)

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