Eskom is not going to subsidise Tegeta - Koko | Fin24
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Eskom is not going to subsidise Tegeta - Koko

Jan 24 2017 16:58
Lameez Omarjee

Johannesburg – Eskom will only part ways from Tegeta Resources and Energy if it means the power utility will not suffer financial consequences, said interim chief executive Matshela Koko.

Koko was speaking at a briefing on the quarterly state of the system at Megawatt Park in Sunninghill, Johannesburg, on Tuesday.

“If we decide to shake hands, Eskom must not lose money. It must be a clean break and not affect the bottom line of Eskom,” said Koko.

“My cost structure must not be worse off because I have had a clean break.”

Koko said that discussions with Tegeta had been difficult - the coal mining company wants out of all of its contracts with Eskom.

However Koko said that in the same way the power utility was “difficult” with Glencore, it would treat Tegeta in the same way.

“Eskom is not going to subsidise Tegeta in any way. We will insist that Eskom remains cost neutral,” he said.

Tegeta approached Eskom following the release of former public protector Thuli Madonsela’s State capture report late last year.

The report stated that almost R1bn worth of prepayment by Eskom to Gupta-owned Tegeta for a coal tender to supply Arnot Power Station, which was allegedly used to buy Optimum Coal Mine (OCM) from Glencore.

READ: #StateCaptureReport: Madonsela nails Eskom over Gupta coal tender

Koko said given the “political nightmare” that ensued, Tegeta felt it was best to part ways with Eskom.  

“I understand why they did so. If I was in their shoes, I would do the same. All I am saying it must be cost neutral.”

Read Fin24's top stories trending on Twitter:

tegeta  |  eskom  |  thuli madonsela  |  state capture  |  guptas  |  coal  |  economy


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