Professor @AntonEberhard has made it his business to defend the unbecoming conduct of @Glencore's Optimum Coal Holdings when @CyrilRamaphosa was its 9.64% shareholder & its Chairman from 26 March 2012 until 22 May 2014.

He does so shamelessly using ad hominem attacks.

@Glencore's Piruto BV and Mr @CyrilRamaphosa's Lexshell 849 Investments PTY LTD paid over $740 M to buy 69% shareholding of Optimum Coal Holdings.

Lexshell 849 owned 9.64% of Optimum. The deal was concluded in March 26 2012.

Clinton Ephron of Glencore told @StateCaptureCom that no due diligence was done when Glencore paid over $740 M to procure Optimum Holdings.

They did not even look at the Coal Supply Agreement between Optimum Coal Mine & @Eskom_SA

The ace up their sleave was Mr @CyrilRamaphosa

Mr @CyrilRamaphosa replaced Mr Mr Bobby Godsell as a Chairman of Optimum on 26 March 2012.

At that point there was no dispute between @Eskom_SA & Optimum in regard to the interpretation, the effect & a breach of the Coal Supply Agreement.

At that time there was also no dispute in regards to the parties' respective rights and obligations under the Coal Supply Agreement.

Most importantly any dispute between Eskom & Optimum had to be decided by arbitration & the outcome out of the arbitration proceedings was binding

Not withstanding the fact that there was no dispute on the interpretations & calculations of penalties when Mr @CyrilRamaphosa became its Chairman on 26 March 2012, Optimum failed to supply @Eskom_SA with compliant coal for a consecutive period from March 2012 to May 2015.

Mr @CyrilRamaphosa sold his shares in Optimum to Phembani on 22 May 2014. The Competition Commission approved this transaction in August 2015.

On 23 May 2014 @Eskom_SA Executives & Optimum concluded a Cooperation Agreement.

Mr Ramaphosa became the DP of the Republic on 25/5/14

The Cooperation Agreement was not authorized by the Board of @Eskom_SA.

The Eskom Executive who signed it had no authority from the Board to sign the Agreement.

The Cooperation Agreement was therefore irregular and unlawful. It suspended the payment of penalties to Eskom.

When Mr @CyrilRamaphosa sold his interests to Phembani on 22 May 2014 Optimum under his watch owed @Eskom_SA R1.43 Bn.

Under his watch Optimum concluded an unlawful Cooperation Agreement to make the R1.43 Bn disappear.

Between May 2014 & May 2015 the debt increased to R2.18 Bn

On 16 July 2015 @Eskom_SA served a letter of demand on Optimum demanding payment in the amount of R2.18 Bn.

Optimum refused to comply & refused to arbitrate as well.

On 5 August 2015 Eskom instituted civil action against Glencore. Summons were served.

@Eskom_SA Particulars of Claim Against Glencore

Not withstanding the letter of demand of 16 July2015 & summons of 5 Aug2015, Optimum refused to pay the penalty amount claimed by @Eskom_SA

Instead they claimed hardship as a result of low prices of coal in the international market.

They demanded almost R8bn bail out from Eskom

@Eskom_SA objected to the ~R8bn bail out demanded by Optimum Mine.

Optimum was not entitled to this bail out.

Most importantly this bail out was not provided for in the @NERSA_ZA budget.

This created a dispute of hardship in terms of clause 27 of the Coal Supply Agreement

Instead of declaring a dispute in terms of clause 27 of the Coal Supply Agreement, Optimum Board placed both Optimum Holdings and Optimum Mine into business rescue.

There is a reason why Optimum chose business rescue process instead of arbitration.

Watch the @StateCaptureCom