Eskom stands by its statement that it is cooperating with the National Treasury investigation (29.08.2016)
Monday, 29 August 2016: Eskom is shocked and perplexed that the National Treasury has chosen to issue a statement that it has issued on the Tegeta contracts as they relate to Eskom.
National Treasury started an investigation into Eskom contracts with Tegeta in July 2015. Eskom wants to reiterate that it has been cooperating with National Treasury. Since then, as outlined below, Eskom has been responding to National Treasury requests.
The first request for information from National Treasury to Eskom was received on 31 July 2015. A response was sent to them and they came back with their first draft report requesting further information on 15 September 2015. We responded to that request and they came back with a second draft report asking for more information on 21 October 2015. Eskom responded on 11 November 2015 with the required information including all invoices and payments made to Tegeta as an annexure to the response. The third request was received on 12 April 2016. Eskom was asked to comment on a 172-page document. This request came with a specific instruction from National Treasury to provide comments after they had been considered by the Eskom Board. The deadline given was 30 April 2016.
This was an unreasonable request. Consequently, Eskom requested an extension to provide the information, which was granted by National Treasury. We therefore think it is neither unreasonable that our Board will have considered responses to the 172-page document by end of September 2016 nor a reason for National Treasury to label Eskom as uncooperative. Furthermore, in a letter from Mr Molefe to Mr Brown dated 24 June 2016 Mr Molefe informed National Treasury of Eskom’s intention to submit the required information after it has been reviewed by the Eskom Board, as per National Treasury instruction of 12 April 2016.
Eskom has compiled a response to National Treasury’s report dated 12 April 2016 and the responses are due to be tabled for consideration by the Eskom Board as per National Treasury’s instruction during September 2016. These responses have already been tabled and reviewed by the procurement subcommittee of the Board on 16 August 2016.
The only letter that Eskom is aware of in which the Minister of Finance refers to prepayments to Tegeta was dated 17 August 2016 (attached). Eskom is in the process of compiling a response in this regard in line with our media statements already issued on this topic.
It is also true that the National Treasury has requested all contracts related to Tegeta (as noted above) and that these contracts were subject to an investigation by National Treasury. We therefore see no reason to retract the statement to the effect that National Treasury has investigated Tegeta contracts extensively.