Exxaro disputes Eskom claims
The power utility did not have policy of coal-supply prepayment, says CEO
Exxaro Resources CEO Mxolisi Mgojo has disputed claims by former Eskom executives that the power utility had an established practice of making prepayments for coal supplies. In a submission made to Parliament, Mgojo described the way in which Eskom "unlawfully pushed Exxaro (which he said was the largest black empowered, South African-based diversified resources company) out of the coal-supply space and contracted with third party/parties at a considerably higher cost to the fiscus". This third party was the Gupta-owned Tegeta Exploration and Resources. The coal-supply contracts of Exxaro’s Arnot, Mafube and Leeuwpan mines were terminated in favour of Tegeta’s Optimum and Brakfontein coal mines even though doing this was costlier. Mgojo said such an arrangement represented value destruction and a breach by Eskom directors of their fiduciary duty to protect the interests of the shareholder. Mgojo was flanked by a top team of executives when he presented evidence before the public ent...
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