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Cape Town - Energy Minister Dipuo Peters on Tuesday added to confusion over government's proposed R20bn lifeline to Eskom when she told parliament it consisted of government guarantees, not an equity injection as announced.
"It is not additional funding... but it is a R20bn guarantee from government to allow us, Eskom, to raise loans from the market.
"It will allow for the building of the Kusile power plant and therefore be able to secure the security of supply of electricity to South African industry and households," she told the National Assembly.
Peters was responding to a statement by Democratic Alliance parliamentary leader Athol Trollip, who told MPs the proposed lifeline was unwise, and the manner in which it was approved suspect.
He pointed out that it fell outside the announced fiscal framework, as there was no mention of it in Finance Minister Pravin Gordhan's mini budget speech last month.
"This announcement was made without prior public consultation, and seemingly without a detailed financial plan and without endorsement by the finance minister by virtue of it not traversing through the prescribed Treasury process. (It) indicates a blatant disregard for transparency and accountability by the Zuma administration."
Gordhan told a media briefing on Monday he was not present at the cabinet meeting where the funding was discussed last week, as he was attending the Group of 20 summit in Seoul.
Treasury spokesperson Jabulani Sikhakhane confirmed on Tuesday "the proposed equity injection still has to go through the normal budgetary process".
'Deep divisions in the executive'
"It has not been approved. Once it has been approved a pronouncement will be made," he said, adding that these were made in the budget. This suggested the final word on the matter would only come in late February.
Sikhakhane said he was "not sure" what Peters was talking about.
The equity injection was announced as a fact by the government communications service last week.
Government spokesperson Themba Maseko initially announced it would be funded by selling non-core state assets, then retracted this a few hours later.
The money would be found as part of the ordinary budget process, he said, as the proposed sell-off had not been approved by ministers.
Trollip said this showed ministers were divided about the decision to dig into the coffers to help Eskom overcome a funding shortfall of R190bn over seven years on its infrastructure expansion programme.
"The cabinet's vacillation on the source of this funding indicates the deep divisions in the executive," he said.
Sikhakhane suggested the media had misread cabinet's statement on the matter. It said cabinet had "noted and supported" a hybrid funding model for Eskom, consisting of doubling state guarantees to the utility "and an equity injection of R20bn over three years starting in the 2011/2012 financial year".
He could not comment on whether consideration would still be given to selling off state assets to fund the lifeline.
Peters on Tuesday also took aim at criticism of the involvement of Chancellor House, the ANC's investment arm, in deals linked to electricity infrastructure.
She accused critics of sounding like a stuck record, and said Chancellor House was an independent entity that could deal with whom it chooses.
"It is not additional funding... but it is a R20bn guarantee from government to allow us, Eskom, to raise loans from the market.
"It will allow for the building of the Kusile power plant and therefore be able to secure the security of supply of electricity to South African industry and households," she told the National Assembly.
Peters was responding to a statement by Democratic Alliance parliamentary leader Athol Trollip, who told MPs the proposed lifeline was unwise, and the manner in which it was approved suspect.
He pointed out that it fell outside the announced fiscal framework, as there was no mention of it in Finance Minister Pravin Gordhan's mini budget speech last month.
"This announcement was made without prior public consultation, and seemingly without a detailed financial plan and without endorsement by the finance minister by virtue of it not traversing through the prescribed Treasury process. (It) indicates a blatant disregard for transparency and accountability by the Zuma administration."
Gordhan told a media briefing on Monday he was not present at the cabinet meeting where the funding was discussed last week, as he was attending the Group of 20 summit in Seoul.
Treasury spokesperson Jabulani Sikhakhane confirmed on Tuesday "the proposed equity injection still has to go through the normal budgetary process".
'Deep divisions in the executive'
"It has not been approved. Once it has been approved a pronouncement will be made," he said, adding that these were made in the budget. This suggested the final word on the matter would only come in late February.
Sikhakhane said he was "not sure" what Peters was talking about.
The equity injection was announced as a fact by the government communications service last week.
Government spokesperson Themba Maseko initially announced it would be funded by selling non-core state assets, then retracted this a few hours later.
The money would be found as part of the ordinary budget process, he said, as the proposed sell-off had not been approved by ministers.
Trollip said this showed ministers were divided about the decision to dig into the coffers to help Eskom overcome a funding shortfall of R190bn over seven years on its infrastructure expansion programme.
"The cabinet's vacillation on the source of this funding indicates the deep divisions in the executive," he said.
Sikhakhane suggested the media had misread cabinet's statement on the matter. It said cabinet had "noted and supported" a hybrid funding model for Eskom, consisting of doubling state guarantees to the utility "and an equity injection of R20bn over three years starting in the 2011/2012 financial year".
He could not comment on whether consideration would still be given to selling off state assets to fund the lifeline.
Peters on Tuesday also took aim at criticism of the involvement of Chancellor House, the ANC's investment arm, in deals linked to electricity infrastructure.
She accused critics of sounding like a stuck record, and said Chancellor House was an independent entity that could deal with whom it chooses.
