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Eskom dumps six coal deals in dispute over trucks

Eskom has terminated six coal transportation agreements‚ which is says is part of a campaign to ensure clean governance.

The suppliers include Constructibility 10CC‚ Fastrak‚ IM Monokoane‚ NJM Transport‚ Lamavuso and Dhlams & Dhlams.

Eskom explained that it currently moves about 40Mt of coal using two road transportation channels: FCA (Free Carrier Arrangement/Agreement) which involves transporters that are directly contracted to Eskom. There are currently 58 of these transporters running under a four year contract that commenced in April 2014‚ ending in March 2018.

The rest of the road deliveries are done by the mines through a model that is normally referred to as Delivered “DEL” within Eskom. In this instance‚ transporters are directly contracted to the mines for the delivery of coal as opposed to the ones directly contracted to Eskom (FCA).

Following a tip-off in July 2016‚ said Interim Group Chief Executive Matshela Koko‚ Eskom undertook a limited investigation into allegations that some FCA transporters had unlawfully introduced additional trucks into the coal road transportation system.

“As a result of this investigation‚ six FCA transporters were suspended between 14 July and 07 September 2016‚ for 7 weeks.

“Considering the discrepancies that surfaced during this limited investigation‚ Eskom commissioned an independent investigation into the unlawful introduction of additional trucks by FCA transporters‚” Koko said.

Koko said it has since emerged during the course of the secondary investigation that the conduct of the six transporters has severely prejudiced compliant FCA transporters.

“This conduct has gravely deprived compliant transporters to a fair and equitable distribution of coal that was available to be hauled to Eskom’s power stations‚” Koko said.

The termination of their agreements was effective on February 3‚ 2017.

 

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