Eskom says it will assist in attempts to ensure that the funds lost to corrupt contracts are recovered.

The power utility was responding to a court order that set aside a R3.7 billion coal contract with the formerly Gupta-owned mining group Tegeta Exploration & Resources.

Eskom says the termination of the contract will not affect the supply of coal at its Majuba Power Station.

The Special Investigations Unit (SIU) secured a High Court order to cancel the 2015 contract to supply coal to the Majuba Power Station for 10 years. The court order also granted the SIU leave to institute legal proceedings against Tegeta.

Eskom’s spokesperson Sikonathi Mantshantsha, “We will comply with the court order and we will assist the courts and law enforcement agencies to deal with state capture and its consequences. So we welcome this court judgment and we assure the people of SA that Eskom will continue with its services.”

SIU spokesperson Kaizer Kganyago says the reason they went to the courts to get the contract between Tegeta and Eskom cancelled was due to the fact that proper procurement procedures were not followed.

In the video below, Kganyago gives details of the court order and the way forward regarding recouping money from Tegeta:

Meanwhile, the Justice and Correctional Services Ministry says it expects the SIU to institute legal proceedings against the formerly Gupta-owned mining group Tegeta Exploration & Resources.

The ministry’s spokesperson Chrispin Phiri, “We think this is an important step in the right direction to ensure that those who are part of maladministration are held accountable but most importantly that money is recovered because this has affected service delivery. Money that should have been used for service delivery ended up funding nefarious activities.”