Eskom official suspended in deals scrutiny

Ayanda Nteta is accused of granting the then Gupta-owned company Tegeta a three-month extension of temporary relief in coal quality

15 April 2018 - 00:00 By SABELO SKITI

Eskom's internal investigation into more than 5,000 lucrative contracts at the state power utility has claimed another scalp, that of senior general manager Ayanda Nteta.
Nteta, of Eskom's primary energy division, has been suspended, the utility confirmed on Friday.
The suspension is related to the Gupta-owned Optimum Coal Mine's controversial supply contract to the Hendrina power station.
"Eskom can confirm that its senior general manager for primary energy, Ms Ayanda Nteta, has been suspended pending an investigation into coal supply for the Hendrina power station," said Eskom spokesman Khulu Phasiwe.
"Due to the current sensitive stage of the internal investigations, Eskom is not in a position to make any further comments on these cases until the probe has been completed."
The Sunday Times understands that Nteta, who was charged on Thursday, is accused of granting the then Gupta-owned company Tegeta a three-month extension of temporary relief in coal quality (allowing a different abrasiveness index to what was contracted for) without following process and getting board approval.
A source said Eskom viewed the act in such a serious light that it was seeking Nteta's dismissal.The extension Nteta granted, between last August and October, followed one granted between June 2016 and March last year. The board decided in December to make the alteration permanent.
Nteta declined to comment this week, saying company policy prevented her from speaking to the media.
Phasiwe said the investigation, being conducted by the new Eskom board's audit and risk committee, had looked into over 80% of 160 contracts valued at more than R1-billion, and 5110 contracts valued at less than R1-billion.
"Once the investigations are completed, and there is evidence of misconduct, we will institute disciplinary action against such employees," he said.
Gupta coal supply contracts took centre stage during the investigation by parliament's portfolio committee on public enterprises into the "capture" of Eskom by the Guptas. These contracts included a 10-year, R4-billion deal for Brakfontein coal mine, a R578-million coal prepayment and a R1.6-billion guarantee that helped the Gupta family buy Optimum from Glencore.
Glencore was forced to put the mine into business rescue after Eskom refused to renegotiate the price of supplying coal, which ironically increased for Tegeta.
In her report on state capture, former public protector Thuli Madonsela noted Eskom's hardline stance on Glencore as one of many actions taken to benefit the Guptas.
The National Treasury's investigation of some of the deals recommended that criminal action be taken against former Eskom chief financial officer Anoj Singh, former CEO Brian Molefe, and former head of generation Matshela Koko, for receiving gratification in respect of contracts...

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