Eskom clarifies Tegeta prepayment

 The money paid to Tegeta was not a loan but a prepayment, Eskom said at the weekend.

“Eskom finds the assertions that the prepayment made to Tegeta ‘was a loan’ pure nonsense. It is based on no facts but fiction,” said the power utility in a statement.

This followed a media report alleging that a leaked draft Treasury document indicated that the prepayment should be converted to a loan with interest.

“The Tegeta prepayment request was considered on its merits when there were security of supply risk during the height of load-shedding. Eskom received value for money in that coal was delivered as agreed in terms of the agreement,” said the power utility.

Conditions relating to the prepayment included a 3.5% prepayment discount on the coal price and sufficient security guarantees, which included the pledging of Tegeta shares.

The power utility said Internal Audit has also confirmed that the full amount of the prepayment to Tegeta has been recovered via coal delivered to Eskom by the end August 2016.

“During this period of time, Eskom had sufficient security in place to cover any potential default by Tegeta. Given the fact that the prepayment was recovered, it remains a grave concern that perceptions continue that a supposed ‘liability’ still exists,” said Eskom.





Cummins Comes to Town; Kenny Gaynor power generation director

  • Published in Videos

Although not strictly planned as an anniversary to mark an epic crossing of the USA in 1931, when Cummins founder Clessie Cummins drove coast to coast over 5,270km in a truck fitted with his Model U diesel engine to prove its durability, it is fitting that 85 years later Cummins Power Generation division should undertake its City to City Tour of South Africa.

Subscribe to this RSS feed


About us

Follow us

Follow us @BusinessNewsCT

BusinessNewsCT High-tech connection solutions by Lapp
BusinessNewsCT Competition time! Don't forget to sign up for @ConnexionZone's competion where you stand a chance to win a R45 000.…
BusinessNewsCT Load-shedding risk increases as coal stockpiles drop