Public Protector’s Gupta investigation must include Eskom coal deals
12 June 2016
I have today written to the Public Protector, Advocate Thuli Madonsela, requesting she broadens the scope of her pending investigation into “state capture” by including the dubious relationship between Eskom and Gupta-owned company, Tegeta Exploration and Resources – which involves a string of contracts for the supply of coal.
This follows today’s front page story in the City Press which reveals that Gupta-owned company, Tegeta Exploration and Resources, was awarded a more than R564 million contract by Eskom for the supply of coal, in order to financial resuscitate the ailing private company. It is alleged that the contract significantly inflated the paying price for the coal provided – unduly benefitting the Gupta’s and the Zuma’s.
It is highly suspicious that a company that was just a few months ago projected to lose R100 million per month - and placed in business rescue - has now been saved by a more than questionable contract with a state-owned company.
This is yet another development in the string of "under the table" relations between the State, the Gupta family, and the Zuma family. For the sake of completeness, the Public Protector’s investigation into the wealthy Gupta family and its relationship with President Jacob Zuma ought to include the long-standing and complicated relationship between Gupta-owned companies and Eskom.