Anoj Singh ‘did not follow due process on Eskom’s $2bn Chinese loan’
Former CEO allegedly ignored legal advice
Eskom did not follow correct procedure for the $2bn Chinese loan it got‚ its corporate funding specialist, Sincedile Shweni, said at the state capture inquiry on Monday. In 2015, Eskom entered into a dubious agreement with China-based Huarong Asset Management, which had approached the cash-strapped power utility with a loan proposal for Eskom to build or refurbish power stations. Shweni‚ who has been employed at the power utility in various capacities since 2001‚ said Huarong’s proposal for the loan agreement was not sent to the utility’s asset and liability committee for approval. Former Eskom CEO Anoj Singh allegedly ignored legal advice by independent law firm White & Case and officials at Eskom, who said the loan terms were ambiguous, and signed off on the deal. The contract outlined a $2bn loan Eskom would receive; but it had caveats. There was a commitment fee of about R400m and an even larger penalty if Eskom backed out.
After Singh resigned under a cloud in January las...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.