The Brakfontein coal supply contract exposed how Eskom's captured board and executive redirected billions in coal procurement to Gupta-linked entities.
In March 2015, Eskom awarded a R3.7 billion, 10-year contract for coal supply to its Majuba Power Station to a Gupta-connected mine. The contract was awarded through an unsolicited bidding process — bypassing normal competitive procurement. The coal from the Brakfontein mine had previously been offered to Eskom by the mine's prior owners. Eskom had rejected it as poor quality.
What changed was the board. In December 2014, a Gupta-aligned Eskom board was appointed under the chairmanship of Ben Ngubane. Within months, coal that Eskom had previously rejected on quality grounds was suddenly acceptable — at premium prices and on a massive 10-year contract.
In August 2016, Eskom officials attempted to expand the Brakfontein contract by R2.94 billion — a 77% increase — on the original 10-year term. This expansion was blocked before it could be completed, but the attempt illustrates the scale of the looting ambition.
The original R3.7 billion contract was challenged in court and declared unlawful, invalid, and of no legal force. The judgment confirmed that the procurement process was irregular from inception — it was designed to benefit Gupta interests, not to secure optimal coal supply for Eskom.
The Zondo Commission documented the Brakfontein contract as part of the broader pattern of Eskom coal procurement capture. The Commission found that "the capture of Eskom was principally about coal" and that Gupta-linked entities systematically extracted billions through inflated coal contracts.