Maligned former CEO of Eskom Brian Molefe began his evidence before the parliamentary inquiry into state capture on Tuesday night with a defence of Eskom’s dealings with Glencore, an explanation of his pension arrangements and a dismissal of allegations of his extensive contacts with the Guptas. Molefe described how Glencore wanted to increase the price of its coal supply from its Optimum coal mine to Eskom’s Hendrina power station from R150 a tonne to R530. He did not support this at a time when Eskom was load shedding and was in a precarious position. "Eskom and the country could not be held to ransom by a supplier of coal who was prepared to let SA suffer crippling power shortages to secure an increased price. The additional cost to Eskom of such an increase would have been in the region of R1.98bn per annum." In addition, Glencore wanted to have the penalties of R2.1bn for breaching contract terms waived. It decided to place its Optimum coal mine under business rescue, he said. ...
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