Koko tells Zondo Commission Eskom went against the Public Finance Management Act

Former Eskom Acting Group Chief Executive Officer (CEO) Matshela Koko says Eskom acted unlawfully and went against the Public Finance Management Act when it failed to enforce penalties against Optimum Mine.

Earlier, Koko told the State Capture Commission that Eskom was allegedly threatened with Cyril Ramaphosa’s name when they tried to enforce penalties.

He says at the end of June 2015, Optimum and Glencore, lied about the amount of penalties they were supposed to pay to the power utility. He says the penalties were close to R2 billion in 2015, while they claimed the amount was R16 million.

Koko says he has opened a criminal case against Optimum Coal Mine and has also reported the matter to the Public Protector.

“Optimum has not met quality coal parameters in terms of the existing coal supply agreement and hence have outstanding penalties due to Eskom of R16 million, at the end of June 2015.”

Zondo asked, “why are they saying R16 million in July 2015?” to which Koko responded, “But chairman, now, you will understand why I was intolerant to this team because the penalties are in the region of R2 billion. They are lying to the board. First, they are saying the penalties have been suspended from 2015. They suspended them without authority.”

State Capture Inquiry | Commission hears Eskom-related evidence: Matshela Koko