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AfriForum secures decisive final victory in Eskom coal contracts case

Soundbite: Morné Mostert (English)

Soundbite: Morné Mostert (Afrikaans)


AfriForum has just secured a decisive and final victory over Eskom that will finally lift the veil of secrecy surrounding the power utility’s coal contracts. This comes after the Supreme Court of Appeal in Bloemfontein has just rejected Eskom’s attempt to overturn a 2024 court ruling, with costs. In terms of today’s ruling, all active Eskom contracts relating to the purchase, transport and distribution of coal and diesel, and the utility’s contracts for the supply of electricity to neighbouring countries, must now be made available to AfriForum.

The Gauteng High Court in Pretoria dismissed Eskom’s refusal to provide access to its coal and diesel contracts under the Promotion of Access to Information Act (PAIA) in March 2024. At that time, Eskom had already been ordered to provide copies of all relevant contracts to the civil rights organisation. The power utility subsequently approached the Supreme Court of Appeal and argued that the refusal to provide access to the contracts was done to protect commercially sensitive information.

However, the court rejected this argument. This reaffirmed the High Court’s finding that the disclosure of information of this nature is permissible under PAIA legislation. Judge Elizabeth Baartman emphasised that “[t]he public, in whose interest Eskom concludes these contracts, has a right to access them.” She further supported the High Court’s finding and stated: “It follows that I cannot fault the high court’s finding that there is nothing to support the allegation that the agreements are confidential, contain information that is commercially sensitive, and would disadvantage Eskom or third parties in contractual negotiations.”

According to Morné Mostert, Manager of Local Government Affairs at AfriForum, it will now be possible to finally investigate, almost four years since the organisation originally submitted its PAIA application to Eskom, whether the coal and diesel contracts are market-related and legally concluded.

“Eskom procures more than 100 megatons of coal annually, making it one of its largest expenses. Considering documented irregularities regarding Eskom’s procurement processes, findings of the Zondo Commission of Inquiry into State Capture and detailed shortcomings in Eskom’s own financial statements, transparency regarding these contracts is essential,” Mostert emphasises.

AfriForum will in the meantime assemble a team of experts to study the contracts.

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