The justice and correctional services department says the High Court order setting aside a R3.7 billion contract between Tageta and Eskom can go a long way in reconstructing the utility.
The court in Pretoria has declared the agreement invalid and of no legal force.
Eskom and the formerly Gupta-owned company signed the deal back in 2015, for the supply of coal to Eskom’s Majuba power station.
Minister Ronald Lamola says the court order is a sign of progress in the fight against maladministration.
Department spokesperson Chrispin Phiri said, “The gist of the judgment is essentially that any money that has been paid under this contract has to be recouped to Eskom. In the current fiscal and economic climate that we are in, that is a lot of money that can go a long way in reconstructing Eskom itself.”
The special investigating unit says it will use the order to proceed with investigations looking into dodgy contracts at other state-owned entities.