FORMER Eskom acting CEO Matshela Koko has told the commission of inquiry into State Capture that the utility’s board acted unlawfully when it failed to collect R2.1 billion in penalties from Optimum Coal Mine (OCM).
At the time, OCM was owned by Global mining giant Glencore.
Eskom and OCM had signed a 25-year contract for OCM to supply coal at R150 per ton. OCM supplied Eskom with poor quality coal incurring penalties amounting to R2.1 billion.
Koko said Eskom was under a legal obligation to collect the penalties.
“So, if Eskom decides to not deduct penalties, it is an unlawful activity that is in contravention with the Public Finance Management Act. Eskom has the obligation chair to impose penalties, the only remedy in the coal supply agreement for Eskom for non-compliant coal are two, its rejection of the coal or penalties.
“Eskom has not waived its right to not deduct penalties. Eskom
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