High-grade coal being trucked to Eskom power plants is diverted to private coal yards where it is replaced with lower quality coal.
The South African Revenue Service and other government agencies said they disrupted a coal smuggling syndicate operating across five of the country’s nine provinces.
The search-and-seizure operation targeted former employees of state power utility Eskom Holdings. “who facilitated procurement fraud,” the agencies said in a statement on Thursday. High-grade coal being trucked to Eskom power plants is diverted to private coal yards where it is replaced with lower quality coal, the agencies said, adding the high-grade coal is then exported. The suspects defrauded the tax collector of more than R500 million, they said.
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