EDITORIAL: Collusion fixed Tegeta deal
Coming as it does, after a series of special favours to Tegeta, it will be no surprise should we learn that Eskom has again bent over backwards to help its special friend, the Guptas
When the Gupta-owned Tegeta Resources bought Optimum coal mine from Glencore a year ago, the transaction had everyone trying to figure where the money would be made. Optimum was tied into a loss-making contract with Eskom to supply Hendrina power station at a price of R150 a tonne until 2018. Previous owner Glencore has said that the break-even price for the mine was R400 a tonne. The mine had also just been fined R2bn by Eskom for delivering substandard coal. Following these punitive measures from Eskom, the mine applied for business rescue. It was these conditions, which were unusually harsh, that caused then public protector Thuli Madonsela to conclude in her State of Capture report that Eskom intentionally pushed Optimum into business rescue, presumably to make it available for purchase by Tegeta. Tegeta bought Optimum from its creditors on the eve that it received notice it would shortly lose banking facilities on the suspicion of involvement in money laundering. When questione...
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.