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New turmoil over ANC's power deal

Apr 13 2010 07:43 James Brent-Styan

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Johannesburg - The ANC's controversial investment arm, Chancellor House Holdings (CHH), will not sell its stake in Hitachi Power Africa, despite the ANC saying this would happen.

On Monday CHH CEO Mamatho Netsianda informed Sake24 by SMS that the stake would not be sold.

Netsianda declined to respond to questions telephonically or comment on the World Bank loan that was granted to Eskom last week.

Chancellor House has a 25% stake in Hitachi Africa, which has contracts to build boilers for the country's new power stations.

But over the weekend ANC treasurer-general Mathews Phosa said the ANC would dispose of the Hitachi stake within the next six to eight weeks.

On Monday, responding to Netsianda's comments, Phosa commented that Netsianda was just an ordinary employee. He referred questions to ANC heavyweight Popo Molefe. Molefe could not be reached.

Chancellor House was established by the ANC but is owned by a trust that makes donations to the party. Molefe is the chairperson of the Chancellor House Trust. It's uncertain who has the final say about the Hitachi stake. According to government officials, this is Phosa.

Energy Minister Dipuo Peters recently told Sake24 that the future of the Hitachi stake was in the hands of the ANC's treasurer-general. He was the one to decide whether or not the stake would be sold.

Netsianda and the ANC have previously butted heads with Phosa, who has admitted to Sake24 that the ANC has little control over CHH and what goes on there.

According to Reuters, Phosa and Molefe have met and the two agree - according to Phosa - that the Hitachi stake must be sold.

But last week Netsianda told the Wall Street Journal he did not care who the shareholders in Chancellor House were. It did not matter, he said, whether they were God, Satan or the ANC - it was he who managed Chancellor House.

In 2008 Phosa had declared that the stake would be sold "within weeks". This has not happened.

Eskom and Hitachi referred questions to Chancellor House.

- Sake24.com

For business news in Afrikaans, go to Sake24.com.

 
 
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