Afrikaner business rights watchdog AfriBusiness has instituted legal steps against Eskom after it allegedly granted a R4 billion contract to Tegeta Explorations & Resources to provide the Majuba power station with coal for the next 10 years.

The action comes only a week after AfriBusiness launched a separate application against Eskom in terms of the Promotion of Access to Information Act (PAIA) regarding bonuses that were paid to the power utility’s top management.

Tegeta Explorations & Resources‚ in which the Gupta family has a stake‚ allegedly clinched the contract on its fifth attempt‚ having being turned down four times previously since 2011 due to the alleged poor quality of its coal.

After the signing of the contract‚ four senior Eskom employees were allegedly suspended for questioning the quality of the coal.

“Because of rumours of corruption and deceit as well as Eskom’s political ties to the ANC‚ such a contract should not even have been discussed. Taxpayers’ money is being used‚ therefore‚ a company like Eskom should at all times act transparent and impeccable‚” Stefan Pieterse‚ national spokesperson for AfriBusiness‚ said.

He added that AfriBusiness’ legal action entailed the procurement of the following information from Eskom:

A list of all contracts between Eskom and Tegeta Explorations & Resources; - A list of tenderers who applied for the contract;

Written reasons why the contract was granted to Tegeta Resources; - An agenda of the meeting where the tender was discussed;

The minutes and resolutions when the tender was approved;

Earlier analysis reports regarding the quality of Tegeta Explorations’ coal.

“We’ve given Eskom 30 days to provide the information to us. If our requests are met with non-cooperation‚ an internal appeal will be our next step‚” Pieterse said.