City Press adamant that Guptas unfairly awarded Eskom coal supply contract

City Press is sticking to their guns in reporting that Gupta-owned company, Tegeta Exploration and Resources, is being favoured to supply coal for Eskom power stations.

In response to the report, Eskom said it would refer the matter to the Press Ombudsman for adjudication.

The controversial family, who have a close relationship with President Jacob Zuma, have been at the center of state capture allegations. They are accused of benefitting unfairly from their relationship with Zuma as a result.

702's John Robbie spoke to Eskom's Group Executive for Generation, Matshela Koko, and City Press journalist, Susan Comrie, regarding the details surrounding the issue.

Listen to the conversation below:

Eskom quietly awarded a contract worth over R500 million to Tegeta Exploration Resources. It hadn't gone out on an open tender.

Susan Comrie, City Press journalist

Tegeta was not one of the shortlisted companies, but they were awarded this lucrative contract.

Susan Comrie, City Press journalist

We're going to take them to the Ombudsman, we're very disappointed. I have a lot of respect for City Press.

Matshela Koko, Eskom's Group Executive for Generation

Koko said Eskom has conducted business in this manner before during emergencies such as the 2008 electricity crisis, which saw South Africans experience load-shedding.

We had an emergency this time and we received reports that there will be a strike. We needed to secure the coal supply for June.

Matshela Koko, Eskom's Group Executive for Generation
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