Eskom went to \u201cextraordinary lengths\u201d to ensure the Gupta family scored a R4-billion coal supply deal from the parastatal. This is according to a report in the Sunday Times.<\/p>\n
The reports states that the Gupta mine linked to the multi-billion rand deal\u00a0had failed coal quality tests four times, before being awarded the lucrative deal on the fifth try.<\/p>\n
Shortly after the deal was concluded, it is reported that four Eskom employees were suspended for questioning the quality of the coal.<\/p>\n
The Gupta\u2019s mining company, Tegeta Exploration and Resources, had tried since 2011 to score an Eskom deal, but had always been rejected.<\/p>\n
A test in March on the company\u2019s coal found it to be \u201cwithin specifications, but risky\u201d \u2013 which resulted in a 10-year deal to supply the Majuba power station being awarded to it.<\/p>\n
Two months after the Gupta-owned company started delivering coal, though, the supply was rejected due to poor quality.<\/p>\n
On 31 August, Eskom sent a letter of suspension to Tegeta \u2013 complaining about the sub-standard coal.<\/p>\n
However, after voicing \u201cgreat concern\u201d in the suspension letter, the temporary ban on the Gupta\u2019s coal was lifted five days later.<\/p>\n
Four Eskom employees, with over 50 years experience, involved in the quality control process were suspended. Two laboratories which conducted the coal quality tests, SGS SA and Sibonsiwe Labs, were also suspended by Eskom.<\/p>\n
The Sunday Times reported that Tegeta\u00a0claimed Eskom staff had colluded with laboratory staff to state the coal was sub-standard in order to extort a bribe from the Guptas.<\/p>\n
Eskom said Tegeta\u2019s coal had subsequently been tested by the SABS, and was found to be compliant.<\/p>\n
Tegeta told the newspaper it operated \u201cin line with corporate governance best practice\u201d, but declined to comment on the issues surrounding its supply deal with Eskom.<\/p>\n
The full report can be read in the Sunday Times of 13 September 2015.<\/em><\/p>\n More on Eskom<\/p>\n Eskom fails performance targets, pays bonuses anyway: DA<\/a><\/strong><\/p>\n