Eskom rubbishes allegations of Duvha coal supply corruption linked to ANC

Jan

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Eskom dismisses allegations of corruption linked to ANC

Eskom has dismissed allegations from mining and energy advisor Ted Blom that a recent coal supply agreement with Seriti Resources is corrupt.

Last month, Seriti Resources announced that Eskom agreed to amend the existing Duvha coal supply agreement, adjusting the coal price from R280 to R550 per ton from 1 June 2021.

The agreement, which will run until 31 December 2024, includes an annual escalation in line with the producer price index.

This paved the way for Seriti Resources to buy SA Energy Coal from Australia-based South32. SA Energy Coal supplies most of the Duvha power station’s coal requirements, which contributes 2,875MW to the grid.

Commenting on this deal, Blom told Gareth Cliff it is a perpetuation of the corruption which was seen with Eskom and the Gupta family.
 

mypetcow

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what can warrant such an increase in the coal price of almost double what they were paying?
Most likely a large part is the cost of doing business that increases over time. Off the top of my head I can think of operational cost of all machinery, cost of labour (salaries have increased and will increase), cost of imported spare parts for said machines that are exchange rate dependent.

It's like the cost of petrol today per litre is higher than 30 years ago.

These long therm supply contracts are quite fixed in cost/tonne of coal so they have to price in risk for the duration of the contract. 'Risk' includes possible cost increases such as salaries, exchange rates, etc.
 

r00igev@@r

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Most likely a large part is the cost of doing business that increases over time. Off the top of my head I can think of operational cost of all machinery, cost of labour (salaries have increased and will increase), cost of imported spare parts for said machines that are exchange rate dependent.
These long therm supply contracts are quite fixed in cost/tonne of coal so they have to price in risk for the duration of the contract. 'Risk' includes possible cost increases such as salaries, exchange rates, etc.
The cost of doing business diminishes over time. The price of profit increases over time. Its called milking the cow.
 

Kawak

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From R280 to R550 sounds like some mis calculation initially, somehow, the entire period of the deal and management of it, should be called into question and not just a blatant "corrupt". It's a whole lot cheaper than prices on the open market, if only we had actual experts doing due diligence instead of just going on air and "blah".

What is certain, our electricity prices will hike, massively.
 

Joe Average

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I cannot think that de Ruyter would knowingly get involved in a corrupt deal, but then he is basically employed by the ANC, since ESKOM is a SOE. Difficult to believe the ANC cannot pay their employees, when they have such income streams.
 

TheChamp

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I cannot think that de Ruyter would knowingly get involved in a corrupt deal, but then he is basically employed by the ANC, since ESKOM is a SOE. Difficult to believe the ANC cannot pay their employees, when they have such income streams.
Are we already lapping it up and not waiting for proper investigations?
 

grok

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Most likely a large part is the cost of doing business that increases over time. Off the top of my head I can think of operational cost of all machinery, cost of labour (salaries have increased and will increase), cost of imported spare parts for said machines that are exchange rate dependent.

It's like the cost of petrol today per litre is higher than 30 years ago.

These long therm supply contracts are quite fixed in cost/tonne of coal so they have to price in risk for the duration of the contract. 'Risk' includes possible cost increases such as salaries, exchange rates, etc.
Those things should be absorbed by inflation-related increases, what has happened is that the cadres are in control of the contracts, so they are in control of the prices, and are fleecing the taxpayer.

Cos if it isn't.. then it'll be a post liberation South African first, hallelujah!
 

Rocket-Boy

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Are we already lapping it up and not waiting for proper investigations?
What is a proper investigation?
Is it one where the NPA, Hawks, National Treasury etc all get involved to investigate themselves?
I have a major problem with a party that puts its own interests before anything else gets to investigate if it's members(who also get put before everything else)
How will you ever get a true outcome with that?
 

TheChamp

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What is a proper investigation?
Is it one where the NPA, Hawks, National Treasury etc all get involved to investigate themselves?
I have a major problem with a party that puts its own interests before anything else gets to investigate if it's members(who also get put before everything else)
How will you ever get a true outcome with that?
Anything more formal than Ted Blom's word?
 

Pineapple Smurf

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