Eskom coal and diesel contracts have been made available to the National Treasury

Monday, 22 February 2016: Yesterday (Sunday, 21 February 2016), the Sunday Times reported that Finance Minister Pravin Gordhan “…will direct the National Treasury to scrutinise all coal-supply contracts awarded by Eskom.” The report further quoted an unidentified senior Treasury source who said: “We are going to look at every contract there; especially those where the parastatal did not follow proper procurement processes.” If this report is correct, then we will await a formal request for information from the National Treasury, and we shall co-operate with the department as we have done before.

Eskom Group Chief Executive Brian Molefe said the alleged mooted investigation on the coal contracts comes as a surprise to Eskom because the company is still waiting for a final report from the National Treasury on the probe that was conducted last year on the same matter.

On 25 June 2015 Eskom received a letter from the National Treasury’s Chief Procurement Officer requesting information on all existing contracts for coal and diesel including a register of payments made to various suppliers. Eskom has duly submitted these documents as requested. In addition, the National Treasury also visited Eskom Head Office on 23 July 2015 to clarify certain information they needed, and to also get additional documents which could not be sent electronically because of their size.

The National Treasury’s last request for additional information from Eskom was on 21 October 2015, which was duly submitted.

Molefe said: “We are still awaiting the outcome of the National Treasury’s probe. However, if they require any additional information from us, we will oblige because we have nothing to hide.”

Not only has Eskom co-operated with the National Treasury, but it has also cooperated with other anti-corruption state agencies such as the Special Investigating Unit (SIU). In March 2011, Eskom proactively asked the SIU to help it put in place appropriate fraud detection and prevention measures. The SIU reviewed all contracts since 1990 and finalised its investigation in 2013. There were no adverse findings. Through this partnership, Eskom has demonstrated a serious commitment to deal with corruption and maladministration issues. If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff or contractors, we will take appropriate action, including criminal prosecution if it is warranted.

Statement issued by Eskom Media Desk, 22 February 2016