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. 

The South African people deserve to know whether Jacob Zuma and his family are using state resources and taxpayers’ money to line their own pockets – while putting at risk the stability of our country’s energy supply. 

On 18 March this year, I called on Advocate Madonsela to launch this investigation into the alleged abuse of executive power by President Zuma. Advocate Madonsela acceded to my request and launched her investigation shortly thereafter. I now implore Advocate Madonsela to broaden the scope of this investigation to include this latest revelation. 

In addition to this, the DA strengthens its call for more funding to be made available to the Office of the Public Protector. Earlier this month, Advocate Madonsela stated that her office required more funds to continue the above investigation. I subsequently wrote to the Minister of Justice and Correctional Services, Michael Masutha, calling on him to make additional funding available by reprioritising his department's current budget. 

I have yet to receive a response from Minister Masutha. 

The Public Protector is a vital component of a thriving democracy, and in order to promote and protect democracy and accountability, her office can never be hindered by funding constraints. Thus Treasury and the Department of Justice ought to ensure the Office of the Public Protector is provided with the adequate funding it requires. 

South Africa cannot afford to have the Gupta family using the South African government to further their own business interests. It cannot be that President Zuma’s close ties to one family are overlooked when these ties result in undue influence over government business. It is therefore imperative that the Public Protector investigates all elements of this relationship. 

Statement issued by DA leader, Mmusi Maimane, 12 June 2016