Treasury has prevented Eskom from extending any further contracts held by Tegeta, a company owned by the Guptas and President Jacob Zuma’s son, Duduzane Zuma.

Treasury prevented Eskom from extending Tegeta-owned Brakfontein’s contract to supply coal over 10 years by a further R2.94 billion. Treasury also barred the electricity parastatal from extending a contract with Optimum coal mine for an additional six months, resulting in an increase from R855 million to over R1 billion.

“Even if the quality issues had been sorted out, Treasury would not have agreed for Eskom to go ahead with expanding the contract. Eskom would still have needed to tell Treasury why it was not able to go out on tender and appoint another company.

“I don’t see how Eskom would have convinced the Treasury that the Brakfontein colliery is the only company that could supply it with coal,” a source revealed.

Khulu Phasiwe, Eskom spokesperson said she was shocked the report had been leaked as perceptions would now become a reality in the eyes of the public.

Phasiwe added that Eskom was concerned the draft report was leaked without it being afforded the opportunity to respond to the allegations.