LISTEN: Criminal charges laid over Tegeta, Eskom contract
The chairperson of the Eskom board, Jabu Mabuza, says criminal charges have been laid against former executives and board members at the power utility.
Civil claims will also be pursued.
Mabuza testified at the commission of inquiry into state capture on Friday as the first witness on Eskom.
He was appointed as chairperson in January 2018, at a time when the company was facing a severe financial crisis.
Evidence leader, Advocate Vincent Maleka, questioned why the board had not taken action after a Treasury report indicated that the contract between Gupta-owned Tegeta Mining Operations and the power utility was unlawful and led to fruitless and wasteful expenditure.
"The board became aware of this report at the time we were having problems of supply from Tegeta for the Hendrina power station. This report and the process must have started maybe two or three years before we got into office. By the time we got involved, there was an issue of Tegeta companies not supplying the quantity and quality as per the coal supply contract they signed with Eskom," Mabuza said.
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Maleka also wanted to know why the board did not act on the remedial actions recommended by Treasury.
Mabuza, who initially said the report preceded his board, told the commission that the current board has exhausted its internal disciplinary proceedings and is now pursuing criminal charges.
"We are embarking on civil suits against the various executives and some members of the board because this contract does involve people in political office, on the board, support staff of the board and different Eskom executives. We have laid criminal charges and handed over to both the Hawks and the Special Investigating Unit."
Some of the executives implicated include former boss Matshela Koko, former chief financial officer Anoj Singh, former legal head Suzanne Daniels and five others.
Eskom is said to have paid Tegeta an advance of almost R600 million for the supply coal just before the company purchased Optimum Coal Mine.
Mabuza said the R1.6 billion guarantee given to Tegeta by Eskom, allegedly approved by Singh, left the company in a deep financial crisis.
Maleka told the commission’s chairperson, Justice Raymond Zondo, that notices of summons have been sent to those implicated by Mabuza but responses have not been recieved.