LIVE: #StateCaptureInquiry: Eskom official Daniel Mashigo to testify

2019-02-26 10:03

The judicial commission of inquiry into state capture hears testimony from Eskom’s primary energy acting General Manager Daniel Mashigo.

WATCH LIVE: State Capture Inquiry (Courtesy of SABC) 

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The commission adjourns for lunch and will be back at 14:00.

Hofmeyr wants to know how Majuba identifies that there is a problem with coal.Mashigo says “the boiler would identify that”.

Hofmeyr moves on to technical compliance requirements: The contract coal is to be supplied, must at all times comply with Eskom’s technical and coal supply requirements. If these requirements are not compliant for supply, Eskom reserves the sole and exclusive right to call for a material breach.

Hofmeyr is reading the protection clause: It is specifically recorded that if the Conditions Precedent are not fulfilled … the remaining provisions of this agreement shall never become effective.

Mashigo says the 2008 mandate was set at a volume of 490.8 million tonnes of coal, and the duration for the contract was until March 2018.

Hofmeyr moves onto the Brakfontein contract.

Mashigo says the sampling process is prone to error.

Mashigo continues his description. 

Mashigo now gives a graphic description (diagram) of how sampling works so that the quality of the coal can be determined.

The quality of coal is important because poor quality undermines the work of the plant and deteriorates its ability to perform optimally, says Mashigo.

Mashigo goes into detail the effects of poor coal quality on Eskom’s plants: More emissions and less generated power. 

According to Mashigo, Brakfontein is remote compared to many other power stations. Coal is transported by road.

Hofmeyr says Mashigo will also touch on how Tegeta dictated methods it wanted Eskom to respond to its contract applications.

We are back in session. Mashigo continues with his testimony.

The commission has adjourned for 15 minutes.

Mashigo says Eskom’s Majuba power station received 50% of its coal supply from the Brakfontein mine.

It should be noted that Tegeta’s Brakfontein mine was found to be supplying Eskom with sub-standard coal in 2017.

Mashigo takes Zondo through the process of acquiring coal and how it is distributed to various power stations.

Mashigo confirms that this year will be his 26th year at Eskom.

Mashigo in 2015 was the acting general manager for coal operations at Eskom – a function that executes the contract and supply to various stations.

Mashigo is now being sworn in.

Hofmeyr says coal quality started to deteriorate as 15 of 30 of the Brakfontein samples failed. Dr Van Der Riet reported the matter to Matshela Koko. 

Van Der Riet was reinstated last year, says Adv Hofmeyr.

Hofmeyr says Dr Mark van der Riet’s testimony looks into the illegal sampling of the quality of coal from the Brakfontein mine. She says Koko allegedly told him the sampling would be done without any Eskom official. Van De Riet was then suspended.

Hofmeyr says no combustion assessment was done and coal started to be delivered to Eskom from the Brakfontein mine. 

Hofmeyr says primary energy acting GM Daniel Mashigo has prepared a power point presentation which was done in 2015. Hofmeyr says it will give background on the coal supply.

Hofmeyr says emails retrieved from a hard drive last year have not been seen or used as evidence before, but it will be used as evidence.

Advocate Kate Hofmeyr is addressing Deputy Chief Justice Raymond Zondo. Hofmeyr explains how the Brakfontein coal mine evidence will be presented.

Daniel Mashigo is, however, yet to take the witness seat. 

Eskom’s coal supply agreement with Gupta owned Tegeta is expected to feature on the evidence of which Mashigo will present. 

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