Court sets aside Eskom’s deal with Gupta-linked Tegeta
The High Court in Pretoria has set aside a R3,7 billion coal supply deal between Eskom and Gupta-linked mining company Tegeta.
The agreement between Tegeta and the power utility was to supply coal at Majuba Power Station in Mpumalanga for the next ten years.
The Special Investigating Unit (SIU) spokesperson Kaizer Kganyago says the procurement was not done properly.
“Today the High Court in Pretoria has given the SIU the order to basically cancel the contract between Tegeta and Eskom, which was entered into in 2015, which was supposed to be for ten years to the value of R3, 7 billion rand, because for the fact that procurement processes were not done properly.”
Kganyago adds that the court also gave the green light for instituting legal proceedings against Tegeta.
“Secondly, the court also ordered that we can also take legal proceedings when necessary in terms of section 133 (1)(b)of the Companies Act, whereby it says that we needed to get a court permission before we can constitute any legal action against a company that is in business rescue,” says Kganyago.
Minister of Justice and Correctional Services Ronald Lamola has welcomed the ruling.
“The fight against corruption will not be won without action by law enforcement agencies.
“Maladministration often lays the basis for corruption to thrive at a great expense to the fiscus and ultimately service delivery and we are encouraged when efforts to recover resources of the people of South Africa are intensified and yield results.”