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South Africa to Probe Eskom Coal-Supply Deals, Times Reports

22 Feb 2016

South Africa’s finance minister Pravin Gordhan will order the national treasury to scrutinize all the coal-supply contracts awarded by Eskom Holdings SOC Ltd., the Sunday Times newspaper reported, citing unidentified sources.

“If it is true we will await a directive from the treasury," Khulu Phasiwe, an Eskom spokesman, said by phone Sunday. “At this stage I am not aware of any request. If the treasury would like information about the coal contracts we have, we will make the information available.”

State-owned electricity provider Eskom is building two coal-fired power plants and a hydro-power complex as well as renewable energy plants to help reduce rolling power cuts that were implemented due to inadequate generation capacity.

Treasury spokeswoman Phumza Macanda didn’t respond to phone calls by Bloomberg News.

Source: Bloomberg