{"id":126665,"date":"2016-06-12T21:22:45","date_gmt":"2016-06-12T19:22:45","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=126665"},"modified":"2016-06-13T10:00:55","modified_gmt":"2016-06-13T08:00:55","slug":"watch-oakbay-ceo-defends-eskom-contract","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/media\/126665\/watch-oakbay-ceo-defends-eskom-contract\/","title":{"rendered":"Watch: Oakbay CEO defends Eskom contract"},"content":{"rendered":"

Oakbay Investments CEO, Nazeem Howa, has <\/span>rejected media speculation that the company has received any special treatment from Eskom.<\/p>\n

The chief executive was speaking to ANN7, a media company owned by the Gupta family, on Sunday following a report by the City Press that Eskom has awarded a R564 million contract to Optimum Coal, which is owned by President Jacob Zuma\u2019s son Duduzane Zuma and the Gupta family.<\/p>\n

In April Tegeta Exploration and Resources, a subsidiary of unlisted Oakbay Investments, completed the R2.1 billion acquisition of Optimum Coal.<\/p>\n

According to the newspaper Tegeta is owned by Oakbay Investments (29%), Duduzane Zuma (28.5%), and three other investors.<\/p>\n

Before the lucrative Eskom contract, Optimum Coal was a struggling mine losing millions each month.<\/p>\n

\u201cIn March, the business rescue practitioners of Optimum Coal reported that the mine was projected to lose R100 million a month,\u201d The City Press said.<\/p>\n

However, after the lucrative Eskom deal, the mine is likely to be taken out of business rescue within the next three months.<\/p>\n

In a statement released on Saturday (11 June 2016), Eskom board chairman Ben Ngubane also rejected speculation of favouritism.<\/p>\n

\u201cEskom rejects any insinuation of favouritism towards suppliers such as Tegeta who are willing to step in to avert the coal supply crisis and allow Eskom to meet the winter demand,\u201d Ngubane said.<\/p>\n

\u201cEskom stands firm by its process undertaken to conclude extensions of its coal supply agreements with its suppliers. I am satisfied that due process has been followed and we can be proud of the savings achieved by the executive team to date,\u201d he said.
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