NEWS

Eskom Seeks Extension For Treasury Probe

Eskom says it needs more time to submit documents to Treasury.

29/05/2017 07:59 SAST | Updated 29/05/2017 08:42 SAST
Siphiwe Sibeko / Reuters

Eskom has reportedly asked for an extension to submit documents in the Treasury's investigation of its coal supply contracts with Gupta owned company, Tegeta.

According to Business Day on Monday, Eskom is also seeking a technical meeting with Treasury to explain itself. If this does not happen, Treasury's draft report and its recommendations will stand, the paper reported.

This includes recommended remedial action that interest must be calculated on a R659 million prepayment made by Eskom to Tegeta and that a full, forensic audit be launched.

Eskom board spokesperson, Khulani Qoma told Business Day:

"Eskom requested National Treasury to arrange a meeting with the relevant Eskom officials at a mutually convenient time based on agreed terms of reference to ensure the National Treasury review process is concluded on a procedurally and substantively fair basis."

Acting chief procurement officer Schalk Human reportedly said: "Our main recommendation is that there must be a full-scale forensic audit and that the prepayment is not, in our view, in line with the legal framework and that the accounting authority, the board, must take steps against those who authorised it. That's how the law works. The accounting authority, the board, is responsible to institute remedial action."

"We want the forensic audit to determine whether or not there was negligence, criminal intent and to ensure good governance. This thing is not concluded until we have had a formal response and then we will finalise it."