Eskom is in negotiations with the Gupta-owned Optimum Coal Mine for a coal price increase, despite the company's erratic record in delivering the commodity.
Since April, Optimum has missed its coal supply delivery targets to Hendrina power station.
The Sunday Times understands that Eskom's interim board, all of whom were named to the permanent board by Public Enterprises Minister Lynne Brown on Friday, mandated the power utility's executives to negotiate with the Gupta-owned mine.The executives' board tender committee had recommended the price hike be declined just two days before the board approved it.
"They are still busy negotiating, so I do not know what you are referring to," said acting CEO Sean Maritz when asked about the approval. He referred further queries to Eskom's media desk, which later denied there were negotiations.
An Eskom insider with knowledge of Optimum's request said the board would be "crazy if they approved this request."
"It's clear they want to go to jail," insisted the insider.
WHEN GLENCORE'S AWAY
Reservations about the negotiations partly stem from the fact that this is the same contract commodities multinational Glencore was muscled out of by the Gupta-owned Tegeta Resources and Exploration.
In late 2015, Glencore placed its subsidiary under business rescue after former Eskom CEO Brian Molefe refused a request to increase the price of coal from R150 a ton to R300 a ton on the basis that it cost more than the contracted price...