R3.7bn Eskom contract with Gupta mine Tegeta set aside: SIU claims huge win

After coal shortages in 2018, Eskom exploited a 2008 emergency medium-term coal procurement mandate to award coal supply agreements between 2013 and 2015.The North Gauteng high court has set aside a controversial R3.7bn coal supply contract between Gupta-linked moning company Tegeta and Eskom, the justice department said on Friday.

Justice and correctional services minister Ronald Lamola said Special Investigating Unit head advocate Andy Mothibi had informed him of the court order. In 2018, the SIU filed papers in the court, demanding that the agreement be declared “unlawful and invalid”, City Press reported. The SIU was also demanding a hefty costs order against Eskom and Tegeta., after coal shortages in 2018, Eskom exploited a 2008 emergency medium-term coal procurement mandate to award coal supply agreements between 2013 and 2015.

On Friday, Lamola welcomed the court order, saying: “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,” he said.

Don't forget that on a particular night when these transaction was signed Brian Molefe was ill in hospital. His lungs collapsed

Surely criminal prosecutions must follow?

Does this mean Tegeta will have to pay back the money to Eskom?

Guarantee + prepayment

It's long overdue. That mine was bought using Eskom's guarantee, technically speaking it belongs to Eskom, i think government should expropriate Tegeta Mine and supply eskom with coal.

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