Media Statements

Court declares Tegeta Exploration & Resources' agreement with Eskom Unlawful

21 February 2020

Minister of Justice and Correctional Services, Ronald Lamola, has been informed by the Special Investigating Unit (SIU) Head, Advocate Andy Mothibi, that the SIU has secured a court order from the High Court of South Africa, sitting in North Gauteng setting aside a contract worth R 3,7 billion between Tegata Exploration & Resources (PTY) LTD and Eskom.
                     
In welcoming this progress in the fight against maladministration, Minister Lamola says: "the fight against corruption will not be won without action by law enforcement agencies".

"Maladministration often lays the basis for corruption to thrive at a great expense to the fiscus and ultimately service delivery and we are encouraged when efforts to recover resources of the people of South Africa are intensified and yield results", Minister Lamola says.

In the court order the agreement entered into on  10 March 2015  for the supply of coal to Eskom's Majuba power station for a period of 10 years  is declared both unlawful and invalid and of no legal force.

The court order further grants the SIU its prayer to institute legal proceedings in terms of section 133 (1)(b)of the Companies Act No 71 of 2008.

Issued by the Department of Justice and Constitutional Development          

Enquiries:    
Mr Chrispin Phiri
Spokesperson: Ministry of Justice and Correctional Services
081 781 2261
Cphiri@justice.gov.za

Media Enquiries may be directed to the Special Investigation Unit to Kaizer Kanyago on 0823068888