The National Union of Mineworkers (NUM) is at loggerheads with Eskom over a proposal by the power utility to extend a coal supply contract with an Australian company without going to tender.
The union last week filed an affidavit at the Sandton police station alleging corruption that could run into billions of rand in the process of trying to extend the coal supply contract with South32, which is being sold to SA company Seriti Resources.
The union's acting secretary, William Mabapa, said the proposal by Eskom to extend its coal supply contract without tendering was akin to how the Gupta family had controversially acquired a Mpumalanga coal mine with the help of the utility at the height of state capture.
"What we have is a letter from treasury which shows that the deviation that Eskom requested was not accepted," said Mabapa.
Mabapa said they had approached the police so that the matter could be investigated and the truth be exposed for everyone to see.
Mabapa said this was a repeat of what transpired with Tegeta Explorations buying Glencore, which had been denied by Eskom to renegotiate its contract.
"South32 is now being taken over by Seriti and the deal is going to work for Seriti... when Glencore wanted to negotiate the price [per ton], Eskom denied to pay [the new price]... when Seriti and others make the same mitigation they're understood," Mabapa said.
A Seriti spokesperson said they rejected “any allegation of impropriety in its dealings with Eskom, and challenges those making vague and spurious claims to substantiate them.”
Eskom has denied the allegation, saying the power utility will be approaching treasury in an effort to address its concerns about coal supply at the power station supplied by South32.
"Eskom has not signed such a contract [as alleged by NUM]. Eskom is in the process of submitting an application to National Treasury to deal with issues of coal supply at the Duvha power station," Eskom spokesperson Sikonathi Mantshantsha said.
"Eskom executives have an obligation to pursue Eskom's best interest at all material times and that is what is happening at the moment."
The National Treasury confirmed that Eskom had submitted several requests on the contract, including a deviation request and affording additional time at the end of the contract to allow the coal mine to deliver the remaining coal.
"National Treasury, in a letter dated 19 October 2020, did not support the deviation but supported an extension of nine months (1 November 2020 – 31 July 2021) in which period Eskom should test the market for the establishment of the long-term contract and to allow other potential service providers to compete through a procurement process that is fair and competitive," National Treasury stated in a response to Sowetan's questions.
In a 19-page affidavit, deposited by NUM deputy president Phillip Vilakazi as part of their complaint, he accused Eskom of pursuing the deal which would benefit the buyers of South32 to the tune of R68bn.
"Even with limited correspondence available, it is clear that this transaction is a carbon copy of the fraudulent 2010/11 Optimum deal where the Eskom coal cost was nearly doubled over a weekend," stated Vilakazi.
Vilakazi alleged in his affidavit that the new deal would see the price of coal Eskom pays to South32 go from R416 per ton to R476.40.
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