CAPE TOWN - South Africans can breath a sigh of relief for now. According to Public Enterprises Minister Pravin Gordhan, the State has recovered more than R2.1 billion from "irregular" contracts. Gordhan relayed this information in a written reply to IFP member of Parliament Elphas Buthelezi. Buthelezi had asked Gordhan about the interventions that had been placed to recover monies lost by state owned businesses.
Gordhan said that Special Investigating Unit has also filled a court application for Eskom to set aside the Tegeta Brakfontein coal supply agreement. The agreement is valued at R2.7 billion. "Civil claims have been lodged against former executives to recover losses that were incurred as a result of their irregular conduct," Gordhan noted."Each board, supported by other officials is heavily seized with executing the plan.
It should be noted that the there are still many hurdles to clime, according to Gordhan. State owned businesses within the minister's portfolio are dealing with a number of issues in the turnaround process. "This will culminate in the review of the operating models of the state owned companies," he said.
At the release of Eskom’s year-end results, Minister Gordhan lashed out at the 17 percent coal price increase, including that Eskom paid 14 percent more per ton in the financial year ending March 31, up sharply from its initial target for a 9 percent cost increase.