According to a news report over the weekend, Eskom has paid more than R130 million for coal from the Gupta-owned company Tegeta, but it can’t make use of it.

The National Treasury has now stepped in with an investigation, with Eskom issuing a statement explaining that it will fully co-operate with the it.

It also refuted the claims made by Sunday Times that the National Treasury has issued conclusive findings against Eskom on any of these contracts.

“Through our normal interactions with the National Treasury, Eskom has repeatedly provided information to the National Treasury and where additional time is required has informed the National Treasury that some of the additional information that it had requested would only be supplied after Board approval,” Eskom said in a statement.

Eskom added in its explanation that the National Treasury supported the extension of the coal supply contract for the Komati Power Station.

“In approving the extension, the National Treasury stated that the reason provided for the extension is that there is a need for continuous supply of coal to Komati as well as the utilisation of the stockyard at Koornfontein premises to supplement the coal stockyard at Komati,” it said.

In terms of the coal that it allegedly can’t use, it explained that Eskom has provided the documentation to the National Treasury.

“In addition, the Department of Water and Sanitation issued Tegeta with a water use licence on 22 December 2014. The spurious allegations by the Sunday Times, which are being continuously regurgitated, are therefore wholly incorrect, mischievous and misleading,” it concluded.

[Image – CC by 2.0/Kevan Williams]