LISTEN: Zondo commission to tackle Eskom

Evidence leader Vincent Maleka told the commission on Wednesday that his team will begin with evidence relating to procurement and load-shedding at the troubled power utility.

Various officials, including Eskom executive Thabani Mashego and board chairman Jabu Mabuza, will testify at the commission. 

The commission’s probe is based on several reports on the power utility, including a report by Parliament’s public enterprises committee, the National Energy Regulator’s report on load-shedding in 2008 and former public protector Thuli Madonsela's report into state capture. 

Maleka said Eskom's contract with Gupta-owned Tegeta mine to supply coal will be central to the probe. 

"You would have picked up from that memo that the introduction of Tegeta into that mine (Optimum Coal Mine) arose in 2015, under circumstances that were worrisome. It was given preferential treatment in relation to due-diligence questions that Eskom always undertakes to ensure a supplier of that kind would meet its contractual requirements. It was given preferential treatment in relation to the pricing of coal it supplied to Eskom." 

He said the commission has evidence that Eskom officials released confidential information to individuals who had an interest in Tegeta. 

"In our view, ultimately this evidence, which is in emails, when we make submissions it will indicate how this project of state capture was implemented in relation to the Brakfontein mine -  post-acquisition by Tegeta.”

Former mineral resources minister Mosebenzi Zwane will be called in to give representations on his visit to Switzerland and Dubai. 

Madonsela's report claims Zwane helped Tegeta in its acquisition of Optimum Coal Mine from Glencore. 

Meanwhile, Mabuza will be queried on load-shedding and the recommendations made by Nersa in 2008 on measures that could have been taken to avoid forced blackouts. 

"The economic impact of load-shedding events is not readily available. however, for generation capacity planning purposes, the cost of not supplying electricity is deemed to be R75 per kilowatt of electricity. This implies that the load-shedding in that period cost the economy approximately R50 billion. That is Nersa's estimation, without reference to scientific research, but an indication of what happens when the country has load-shedding," said Maleka. 

The commission’s chair, Justice Raymond Zondo, expressed concern that load-shedding was implemented in 2008, some eight years after cabinet was first warned by Eskom management. 

Former Eskom executives Anoj Singh and Matshela Koko, who have both been implicated in state capture, will also be summoned to appear before the commission.