The Sunday Times first reported about the dodgy deal in 2017 after former CFO Anoj Singh, a known Gupta associate, was placed on special leave.
At the time the newspaper reported that the guarantee had helped Tegeta to buy Optimum Coal in December 2015.
The board had authorised Eskom executives to negotiate a prepayment to Optimum Coal for the delivery of coal.
“The issuing of a guarantee, as strange as it may seem, was actually a better risk mitigation factor for Eskom because ... imagine had we paid the money in cash over to the supplier, there would have been greater issues,” said Daniels.
She had supported the decision because it was a better option for Eskom to hold on to the cash at the time.
“We would have given 12 months of cash, actually,” she said.
TimesLIVE