Eskom and the Gupta family’s Tegeta Exploration & Resources have reached an arbitrated settlement on a controversial R2bn fine that the power utility had levied on Optimum Coal, previously owned by Glencore.
Departing from its well-publicised campaign to force Glencore to pay up, Eskom said on Monday that the settlement was "confidential" as it was reached in private arbitration.
"We are not at liberty to disclose the contents of the agreement," said Eskom spokesman Khulu Phasiwe. An award was made on March 31.
The secrecy is likely to fuel speculation that the Guptas are again beneficiaries of another sweetheart deal from Eskom, whose prepayment of more than R600m to Tegeta was found by the public protector to be irregular. This payment paved the way for Tegeta to buy Optimum from Glencore.
Former Eskom CEO Brian Molefe was forced to resign last November after being implicated in potentially irregular dealings with the Gupta family, according to the public protector’s state capture report.
Refusing any negotiations, Eskom under Molefe’s leadership demanded the payment of the R2bn penalty, forcing Glencore to place its subsidiary in business rescue, later selling the mine to the controversial family.
While Molefe is on record as saying "there will be no negotiations, we want every cent paid", Eskom immediately changed its attitude after Glencore sold the operation to the Gupta family in 2016. The parties commenced talks.
Optimum incurred the fine because Eskom said the coal did not meet specifications.
Representatives of Gupta-controlled Oakbay Investments, which owns a stake in Tegeta, did not immediately reply to an e-mail seeking comment.
With Bloomberg
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