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Eskom terminates contracts of six coal transportation companies

Eskom terminates contracts of six coal transportation companies

Photo by Duane Daws

6th February 2017

By: Creamer Media Reporter

     

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State-owned power utility Eskom has terminated six coal transportation agreements under its Free Carrier Arrangement (FCA) following a secondary independent investigation into the unlawful introduction of additional trucks by some FCA transporters.

Eskom, which had 58 FCA transporters contracted under a four-year agreement ending March 2018, initiated a “limited investigation” following a tip-off in July 2016.

This initial investigation led to a seven-week suspension, between July 14 and September 7, 2016, of six FCA transporters, with discrepancies within the initial findings triggering the commissioning of a full investigation.

“It has since emerged during the course of the secondary investigation that the conduct of the six transporters has severely prejudiced compliant FCA transporters to a fair and equitable distribution of coal that was available to be hauled to Eskom’s power stations,” Eskom interim group CEO Matshela Koko said in a statement on Monday.

Some 40-million tonnes of coal is transported either through the FCA transporters contracted directly to Eskom or transporters directly contracted to a mine through a model dubbed “Delivered” or “DEL” within Eskom.

The six companies that have had their contracts terminated are Constructability 10CC, Fastrak, IM Monokoane, NJM Transport, Lamavuso and Dhlams & Dhlams.

Edited by Creamer Media Reporter

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