Eskom loses SCA court battle over secret coal contracts

2026-03-24 - 04:50

Eskom says it’s studying a court judgment that dismissed the utility’s appeal against an earlier high court ruling compelling it to disclose contracts for the purchase and transport of coal and diesel. On Monday, the Supreme Court of Appeal (SCA) found that it is in the public interest to disclose the contracts and rejected Eskom’s argument that they are commercially sensitive. Access In June 2022, lobby group AfriForum used the Promotion of Access to Information Act (PAIA) to request Eskom’s electricity supply contracts with neighbouring countries, as well as its coal and diesel purchasing and transport contracts. Eskom released the cross-border electricity contracts but withheld the coal and diesel agreements, citing commercial sensitivity. AfriForum appeal However, AfriForum challenged this in the Pretoria High Court and won in 2024. The high court found that Eskom’s initial and additional reasons for refusing access to the required information “was insufficient and without any merit.” Eskom appealed to the SCA, but the appeal has now been dismissed, upholding AfriForum’s right to access the contracts. Judgement In the ruling, Judge Elizabeth Baartman emphasised that the “public, in whose interest Eskom concludes these contracts, has a right to access them.” Baartman further supported the High Court’s finding. “It follows that I cannot fault the high court’s finding that there is nothing to support the allegation that the agreements are confidential, contain information that is commercially sensitive, and would disadvantage Eskom or third parties in contractual negotiations.” “I am persuaded that the high court reached the correct conclusion, despite applying the incorrect test. I therefore make the following order: The appeal is dismissed with costs, including the costs of two counsel,” Baartman ruled. Eskom responds Eskom said it has taken note of the judgment. “Eskom is studying the judgment in consultation with its attorneys, after which it will decide how it will approach the matter.” AfriForum Manager of Local Government Affairs Morné Mostert welcomed the ruling. “It will now be possible to finally investigate, almost four years since the organisation originally submitted its PAIA application to Eskom, whether the coal and diesel contracts are market-related and legally concluded. “Eskom procures more than 100 megatons of coal annually, making it one of its largest expenses. Considering documented irregularities regarding Eskom’s procurement processes, findings of the Zondo Commission of Inquiry into State Capture and detailed shortcomings in Eskom’s own financial statements, transparency regarding these contracts is essential,” Mostert said. AfriForum said it will assemble a team of experts to study the contracts. South Africa is heavily dependent on coal for energy, with Eskom’s coal-fired power stations generating more than 80% of the country’s electricity. ‘Critical mineral’ This deep-seated reliance, largely driving Eskom’s generation and the economy, causes significant environmental damage and health problems. In February, Minister of Minerals Resources and Energy Gwede Mantashe said coal was a “critical” mineral for South Africa because of its contribution to the economy. Mantashe said coal is fundamental to address energy poverty across the African continent and remains indispensable in securing reliable baseload energy for the world.