Tegeta's R3.7-billion coal supply contract with Eskom set aside

Tegeta's R3.7-billion coal supply contract with Eskom has been declared invalid by the North High Court after the Special Investigating Unit (SIU) obtained a court order to set aside the contract.

SIU spokesperson Kaizer Kganyago says the court has also given the green light for the unit to institute legal proceedings against the formerly Gupta-owned company.

The contract was not entered into in accordance with the supply-chain management of Eskom and the required permissions were not granted. We found that we needed to then take this matter to the court so that the court can set aside the contract.

Kaizer Kganyago, Spokesperson - SIU

They also gave us permission to institute legal proceedings against Tegeta. The reason why it was necessary for the court to give us permission is because Tegeta is now under business rescue.

Kaizer Kganyago, Spokesperson - SIU

We can then look into other matters of the monies that have already been given to Tegeta because our records say so far they have been paid about R1.2-billion of that R 3.7-billion.

Kaizer Kganyago, Spokesperson - SIU

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