Days of Zondo: Newsflash: Brian Molefe blocked Optimum Coal’s life-saving Eskom deal, says witness By Jessica Bezuidenhout JessBezJourn
Clinton Ephron, the former CEO of Optimum Coal Holdings, the company Glencore was pressured into selling to the Guptas in 2015, told the State Capture Commission on Wednesday that a “binding” addendum to an original contract suddenly went up in smoke weeks after Molefe’s appointment.
Until then, teams party to the negotiations at both Eskom and Optimum, were optimistic as the deal had been drawn up and only required Eskom governance processes to kick in to ensure it materialised. Senior advocate Vincent Maleka asked Ephron how he had felt about Molefe’s apparent change of attitude. In one word, he said: “Devastated.”
A key asset, this mine is situated next to Eskom’s Hendrina power station and had, since the 1970s been tied to exclusive, long term contracts with Eskom to ensure security of supply.The sale of Optimum to the Guptas was facilitated through extreme political intervention and the aid of Eskom executives through a controversial R1.6-billion guarantee and a R600-million prepayment for coal to help the Guptas cover a short-fall on the purchase price.
This was because the company had found that the inflationary adjustment in the coal price paid by Eskom was no longer working and that costs of running the mine and producing the coal was exceeding the selling price.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Eskom & Brian Molefe strong-armed Glencore on coal contract,' inquiry hearsThis emerged from testimony by former Glencore CEO Clinton Ephron, who is on the stand at the Zondo commission of inquiry into state capture.
Read more »
Brian Molefe refused to renegotiate Optimum contract, former Glencore CEO tells state capture inquiryFormer Glencore chief executive Clinton Ephron has described two meetings with Eskom in which the utility's then acting boss Brian Molefe shut down any possibility of renegotiating a coal supply contract with Optimum Coal.
Read more »
Molefe refused to negotiate with Glencore, #StateCaptureInquiry hears | IOL NewsThe Zondo commission has heard how former Eskom CEO Brian Molefe had refused to renegotiate a coal supply agreement with Glencore days after he took over the leadership at the power utility.
Read more »
Days of Zondo: Gupta Inc’s Eskom woes reloaded before Justice ZondoThe Guptas, McKinsey & Co, Regiments Capital and Trillian Capital Partners, along with their former Eskom enablers, are back in the spotlight as the State Capture commission shifts attention to their deals with the power utility — and this time, with the threat of subpoenas and summons to extract versions from implicated parties.
Read more »
Former Glencore CEO 'devastated' by Molefe's about-face on coal dealFormer Glencore CEO Clinton Ephron has told the Zondo commission that he was devastated when former Eskom CEO Brian Molefe told him Eskom would not be updating the company’s contract with the power supplier.
Read more »