This is getting more complicated by the day. When will these altercations end? The multibillion-rand coal-supply contract between Eskom and Gupta-owned company Tegeta was “hastily put together by copying and pasting sections from other contracts”, parliament heard yesterday.
Also, the quality criteria for the coal were set out in a later letter and were not agreed to by both parties, which made the contract unenforceable.
This was revealed by officials reporting to the Treasury’s chief procurement officer when they were questioned by members of parliament’s Standing Committee on Public Accounts (Scopa).
The deal could now become the subject of a probe by the Special Investigating Unit.
The meeting was convened by Scopa to discuss a report by independent auditors into the coal-supply contract, which was signed under controversial circumstances in 2015.
Some ANC MPs tried to prevent the discussion from going ahead, arguing that Eskom was not represented and claiming that the PwC report had been finalised.
But Scopa chairman Themba Godi would have none of that and the committee continued with its scheduled business.
The PwC report states that the contract with Tegeta had been poorly formatted, contained irrelevant information and ambiguities, and appeared to have been “hastily” drafted by “copying and pasting sections from other contracts”.
Treasury official Solly Tshitangano said the contract, initially valued at R3.7-billion for 10 years, had been signed without competitive bidding under Eskom guidelines that allow for coal to be procured without a tender if there is a shortage.