Coal and diesel contracts: Eskom finally discloses contracts to AfriForum after years-long transparency battle
1 359 days – or 3 years, 8 months and 21 days – since AfriForum made an application to Eskom in terms of the Promotion of Access to Information Act (PAIA) on 21 September 2022 to gain access to the power supplier’s coal and diesel contracts, they were finally released to the civil rights organisation on Monday evening (1 June). AfriForum welcomes the disclosure of contracts and labels it a victory for transparency.
The organisation will now put together a panel of experts to study the extensive information in the 52 released contracts and ensure that any questionable information related to the contracts can finally be brought to light.
Eskom’s release of the contracts comes after the Supreme Court of Appeal in Bloemfontein dismissed Eskom’s final attempt to overturn a 2024 court ruling in March of this year, with costs. In terms of the 2024 ruling, Eskom was ordered to provide AfriForum with copies of all active 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.
The disclosure of the contracts is, according to AfriForum, a critical victory for transparency, accountability and the public’s constitutional right to access information. This follows a years-long legal battle in which Eskom fought hard to keep the information out of the public domain. However, the civil rights organisation’s perseverance has now paid off, and justice has been served.
AfriForum has maintained from the outset of the case that the public has a legitimate interest in information about Eskom’s procurement of coal and diesel and the costs thereof. However, the power utility has repeatedly resisted AfriForum’s attempts to obtain the information. This has led to a protracted litigation process.
“The contract case is not simply about obtaining documents. It is about the right of South Africans to know how billions of rands of state funds are being spent by one of the country’s most important state entities. It is about the principle that public institutions must be accountable to the people they serve – people who must reap the bitter fruits of rising electricity tariffs, load shedding and Eskom’s procurement failures. Under these circumstances, transparency is not optional; it is essential,” explains Morné Mostert, Manager of Local Government Affairs at AfriForum.
According to Mostert, Eskom’s own financial and management records confirm that information about Eskom’s coal and diesel procurement is of critical importance. Independent auditors have also previously pointed to significant shortcomings in the management of Eskom’s diesel procurement processes and the coal supply chain. Public reports have also highlighted the same issues regarding years of irregularities and management problems at Eskom.
Panel of experts to be formed soon
AfriForum is now preparing to study the contracts in detail – with the help of a panel of experts. The panel will consist of independent experts in procurement, energy regulation and public finance. Once the investigation is completed, AfriForum will share the findings with the public and provide a detailed assessment of the procurement arrangements, pricing structures and other relevant issues.
At this stage, it appears that Eskom has not provided all active contracts for the period of AfriForum’s request. However, further investigation is required to determine whether any contracts are missing.
“This case has established an important principle: When questions arise about the expenditure of public funds, state entities cannot simply claim that the information is confidential. Transparency is the cornerstone of accountability, and it is a prerequisite for restoring trust in the country’s public institutions. The disclosure of these contracts is not the end of the process; it is the beginning of proper public inquiry,” Mostert concludes.
AfriForum thanks its members and supporters who have enabled the organisation to pursue this case over several years. The case demonstrates the value of civil society’s continued oversight and the importance of holding public institutions accountable, and if necessary, doing so through the courts.
