Home South Africa News Guptas strong-arm Eskom to back illegal mine

Guptas strong-arm Eskom to back illegal mine

Cape Town – The politically connected Gupta family is allegedly putting pressure on Eskom chairperson Zola Tsotsi to approve a R500m Idwala Coal contract – despite management opposing the move.

According to the Sunday Times, this comes after a confidential report signed by three senior Eskom officials states that Idwala’s “illegal” mining has made the deal too risky for Eskom.

Idwala Coal Crypts, which is co-owned by the Guptas, is an illegal mine in a wetland in Mpumalanga, and continues to break environmental laws despite being ordered to clean up its act last year.

The newspaper reports that Atul Gupta has put pressure on Tsotsi to get the deal approved. A source familiar with the issue said the Guptas had informally raised concerns with cabinet ministers about Eskom’s failure to sign the deal.

The issue of the rogue mining operation, which is also linked to Duduzane Zuma, President Jacob Zuma’s son, came to light late last year when it emerged that Idwala had been operating illegally for the past three years and that national government simply turned a blind eye…

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