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Eskom cleans up its coal suppliers

Published by , Editorial Assistant
World Coal,

As part of its ongoing campaign to ensure clean governance, Eskom has taken a decision to terminate six coal transportation agreements with effect from 03 February 2017.

Amongst the impacted suppliers are Constructibility 10CC, Fastrak, IM Monokoane, NJM Transport, Lamavuso and Dhlams & Dhlams.

Eskom currently moves about 40 million t of coal using two road transportation channels: FCA (Free Carrier Arrangement/Agreement) which involves transporters that are directly contracted to Eskom. There are currently 58 of these transporters running under a four year contract that commenced in April 2014, ending in March 2018.

The rest of the road deliveries are done by the mines through a model that is normally referred to as Delivered ‘DEL’ within Eskom. In this instance, transporters are directly contracted to the mines for the delivery of coal as opposed to the ones directly contracted to Eskom (FCA).

Following a tip-off in July 2016, elaborated Interim Group Chief Executive Matshela Koko, Eskom undertook a limited investigation into allegations that some FCA transporters had unlawfully introduced additional trucks into the coal road transportation system.

As a result of this investigation, six FCA transporters were suspended between 14 July and 07 September 2016, for seven weeks.

“Considering the discrepancies that surfaced during this limited investigation, Eskom commissioned an independent investigation into the unlawful introduction of additional trucks by FCA transporters,” Koko explained.

Koko said it has since emerged during the course of the secondary investigation that the conduct of the six transporters has severely prejudiced compliant FCA transporters.

“This conduct has gravely deprived compliant transporters to a fair and equitable distribution of coal that was available to be hauled to Eskom’s power stations,” Koko said.

Koko emphasised that Eskom will continue to make decisive decisions to ensure compliance with the policies of the utility so as to achieve “unimpeachable procurement decisions across the company’s entire value chain”.

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