The report also includes a recommendation for disciplinary action against officials who played a role in the irregular appointment of Tegeta.
It further recommends that the Eskom board should consider “restricting” Tegeta for colluding with Eskom officials who compromised the integrity of the procurement process.
The procurement process was found to be irregular, with Tegeta appointed despite failing to meet the 50% + 1% black ownership requirement at the time of its appointment.
Eskom officials, including Koko, its former CEO, contravened the Public Finance Management Act by concluding a CSA agreement with a party that did not meet the 50% + 1% requirement at the time.
Eskom and Tegeta negotiated the deal before the latter obtained a water licence, which is also a requirement.
The report found that Eskom officials increased the duration of the CSA from five to 10 years without the requisite consultation. No evidence was found that approval was obtained to procure coal from Tegeta beyond the lifespan of a mandate given by the Eskom board.
- BusinessLIVE