The Competition Commission has been asked to investigate possible collusion and uncompetitive practices related to Eskom coal contracts in a request implicating Deputy President Cyril Ramaphosa’s Shanduka Trust.
Business Day has seen the written request for the investigation, but the complainant sought to remain anonymous.
The complaint comes amid the vicious succession battle for leadership of the ANC in which Ramaphosa is one of the frontrunners to succeed President Jacob Zuma. Ramaphosa has already shrugged off more than one smear campaign. In the most recent, his private e-mail account was hacked and details of alleged extramarital affairs were published. He denied the allegations except for one.
The request for the probe said that Eskom concluded exclusive supply agreements with Anglo American, Exxaro and BHP Billiton at power stations — including Kriel, Matla, Lethabo, Tutuka and Kendal.
"These exclusive contracts have been in place for a number of years and will remain in place … with the earliest agreement terminating in 2019 and the latest in 2033. These contracts are cost-plus contracts, which means Eskom prepays these firms before they supply the power stations with coal."
The complaint said smaller suppliers could not compete with Anglo American, Exxaro and BHP Billiton to supply coal to these power stations because of the exclusive agreements.
It also listed Shanduka Coal, a coal company managed by Glencore SA and Phembani Coal Investments and in which Ramaphosa held an interest in trust. It named Thandeka Ncube, a former director of Shanduka. Ncube was also listed in connection with contracts with Hlagisa Mining and BHP Billiton.
"We request the Competition Commission to investigate whether these companies are not colluding in contravention of section 4 of the Competition Act 89 of 1998 as amended," the complainant said.
The commission’s cartels division manager, Makgale Mohlala, confirmed that the complaint had been made, but said it was still fresh and needed to be investigated.
He would not divulge the names of implicated directors, but said the commission would investigate the alleged collusion as well as a case of irregular contract extension.
The commission would then call on the individuals named in the complaint to answer, Mohlala said.
Ramaphosa’s spokesman, Tyrone Seale, said it would be difficult to comment without a timeline, as Ramaphosa had divested from mining in 2014.
"All that we can say is that the deputy president does not have any mining interests as he divested and disposed of his stake in Shanduka in 2014, but he has been on record as a supporter of improving the economy and combating uncompetitive behaviour," Seale said.
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