Molefe denies favouring Gupta-owned Tegeta in Eskom coal contract

The coal was meant to supply the Arnold Power station.

Molefe returned to the commission of inquiry into state capture on Wednesday.

The power station was experiencing a coal supply crisis as its agreement had come to an end.

Eskom went into a coal supply agreement with six BEE companies to supply from January 2016 to October 2016 to remedy the situation.

One of those companies was Tegeta.

Evidence leader, Advocate Pule Seleka, said it was strange that Eskom was purchasing coal from Tegeta at a higher price.

"One would have expected that if the price was an issue for Eskom, which was in financial strain, they would have gone to Optimum and paid a cheaper price for coal to be supplied to the Arnold power station because Tegeta had a mark-up.

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“In the January contract between Eskom and Tegeta, you were paying R467 per ton and Tegeta was paying R448 per ton to get from Tegeta, you could have gotten it for R448 directly from Optimum.”

Molefe said that is how capitalism works, because there is a willing-buyer willing-seller, and he did not expect this to be escalated to his office.

He said it was equally strange that the commission was only focusing on Tegeta's mark-up since the other five companies could have done exactly the same.

Seleka answered that Tegeta was a focus because of Molefe's relationship with the Guptas.

"I told you that even when the six contracts were signed, I was not there, I was in the hospital. You are pinning me on Tegeta at all costs even when I tell you I was in the hospital," said Molefe.

Seleka said he was not pinning him down but rather asking questions. 

The commission’s chair, Deputy Chief Justice Raymond Zondo, intervened by telling Molefe that he can respond by stating that he agrees or disagrees.

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