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'ANC must answer' - Holomisa

Jan 26 2010 12:15

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Cape Town - United Democratic Movement leader Bantu Holomisa has asked the National Assembly's energy committee chair Elizabeth Thabethe to call the Eskom board to appear before the committee.

In a letter to Thabethe on Tuesday, Holomisa said Eskom's board should be invited to appear before the committee "in the wake of the troubling issues" that were raised in the recent National Energy Regulator of SA hearings on Eskom's proposed tariff increases.

These included Eskom's financial strategy and material conflicts of interest.

"High on the agenda for such a meeting should be whether the board was aware of the stake in the Hitachi deal of ANC investment company, Chancellor House," he said.

The board should brief the committee on the history of the deal.

In particular, why Hitachi got the deal, what the role of politicians was in the process, and whether Hitachi "essentially bribed their way into the winning position by partnering with Chancellor House".

"We would also like to hear the board's views on the untenable situation created where proposed massive tariff increases will directly benefit the ruling party to the tune of billions of rands, while having a major negative impact on the entire economy.

"It creates the impression that the public is being coerced into funding the ruling party by way of tariffs.

Conflict of interest

"Parliament needs to satisfy itself that this deal does not constitute a conflict of interest.

"If it is proven that there is in fact a conflict of interest, the board should show cause why the deal should not be cancelled," Holomisa said.

Last week, Holomisa and the Democratic Alliance, among others, called on the ANC to rid itself of shares in companies that benefited from public contracts.

"It creates a conflict of interest that quite simply leads to bad governance and corruption," Holomisa said at the time.

According to media reports, the ANC is set to earn billions of rands through tenders given by Eskom to Hitachi.

The ANC's investment arm Chancellor House owns 25% of Hitachi.

Tariff increase to benefit Eskom

Eskom has proposed that electricity tariffs be increased by 35% a year for three years to fund its infrastructure expansion programme.

Holomisa said: "We now have a situation where Eskom's plans are not possible unless they fleece the public with massive tariff increases.

"And we have a ruling party that stands to benefit to the tune of billions of rands if Eskom continues with these plans. It is a preposterous situation."

At the same time, the DA's Sejamothopo Motau said there were "compelling reasons" to believe the ANC would benefit from Eskom's proposed electricity tariff hikes.

He said all indications were that the tender process where Hitachi won a R20bn tender to build a boiler for Eskom at Limpopo's Medupi power station was "flawed".

"The array of information available now in the public domain provides compelling reasons to believe that the ANC will benefit from higher Eskom tariff hikes," he said.

The ANC's treasurer Mathews Phosa has promised to take steps to disinvest the party's interest in Hitachi, which makes products ranging from home appliances to industrial machinery.

However, ANC secretary general Gwede Mantashe said last week there was nothing wrong with the party holding a stake in Hitachi.

- Sapa

 
 
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