Special Investigating Unit allowed to institute legal proceedings against the Gupta-linked company, even though it is in business rescue
Coal is seen being transported along a conveyor belt. The Pretoria high court has ruled the R3.7bn coal supply agreement for Majuba power station between Eskom and Tegeta is invalid and unlawful. Picture: ROBERT TSHABALALA
In the judgment, handed down on Thursday, the court ruled that the R3.7bn coal supply agreement for Majuba power station signed between the utility and Tegeta on March 10 2015 is invalid and unlawful. Minister of justice & correctional services Ronald Lamola welcomed on Friday the judgment as progress in the fight against maladministration that “often lays the basis for corruption to thrive at a great expense to the fiscus and ultimately service delivery, and we are encouraged when efforts to recover resources of the people of SA are intensified and yield results”.
Business rescue is a type of bankruptcy protection provided for by the Companies Act as an alternative to liquidation. Tegeta’s four companies — Optimum Coal Mine, Koornfontein Mines, Optimum Coal Terminal and Shiva Uranium — were placed in business rescue two years ago when SA banks cut off their facilities and they became unable to transact.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DA welcomes court setting aside Eskom/Tegeta deal | IOL NewsThe DA has welcomed the High Court in Pretoria's order setting aside a contract worth R3.7 billion between the formerly Gupta-owned ...
Read more »
R3.7bn Eskom contract with Gupta mine Tegeta set aside: SIU claims huge winThe North Gauteng High Court has set aside a controversial R3.7-billion coal supply contract between Tegeta and Eskom, the justice department said on Friday.
Read more »
Maverick Citizen: Constitutional Court: UK man in court to have SA’s prohibited drugs list declared unconstitutionalIn a case that could have a huge impact on arrests and prosecutions of drug-related crimes in South Africa, a man sought in the United Kingdom for drug offences has asked the Constitutional Court to rule that the list of prohibited drugs, including dagga, in the South African Drugs Act is unconstitutional and invalid as it was compiled by a minister instead of Parliament.
Read more »
Tshwane water woes in court again - The Mail & GuardianThe municipality has been accused of deliberately derailing the contract to sort out toxic water crisis in Hammanskraal
Read more »
SIU considers suing formerly Gupta-owned mining group Tegeta - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The Special Investigating Unit (SIU) says it is considering suing the formerly Gupta-owned mining group Tegeta Exploration and Resources for the funds already paid over to it in the now invalidated coal contract with Eskom.
Read more »
Lesotho’s leader a no-show at court over wife’s deathThomas Thabane had not turned up for a court appearance two hours after the hearing was meant to start, and police were unsure of his whereabouts
Read more »