Eskom cut corners on Tegeta deal, says report
State utility failed to follow due diligence, PwC finds
In its haste to award the Gupta-owned Tegeta Exploration and Resources lucrative coal supply contracts, Eskom failed to apply due diligence, including ensuring that its evaluation team was not conflicted when deliberating on deals involving Tegeta. Eskom also did not ensure that Tegeta was put through the power utility’s supplier development programme, a crucial step to ensure that companies doing business with the state-owned entity pass muster. These details are in a PricewaterhouseCoopers (PwC) report, which was commissioned by Eskom, reviewing its coal agreements with Tegeta and the Tshedza Mining Manungu, Keaton Mining Manungu and Universal Coal Kangala collieries. Tegeta’s Brakfontein Colliery and Brakfontein Colliery Extension were looked into. Solly Tshitangano, chief director of governance, monitoring and compliance in the office of the chief procurement office at the Treasury, presented the report’s contents on Wednesday to Parliament’s standing committee on public account...
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