PARLIAMENT’S portfolio committee on mineral resources and energy decided on Tuesday that it will summon Minister Gwede Mantashe, top departmental officials and other interested parties.
The officials will be asked to explain themselves with regard to corruption allegations made about government’s emergency power procurement process, which involves Turkish company Karpowership.
The department of mineral resources and energy’s Risk Mitigation Independent Power Producer Programme (RMIPPP), which is intended to address SA’s short-term energy shortfall, announced winning bids in March, with the lion’s share going to Turkish subsidiary Karpowership SA. The company won a 20-year contract to supply gas-fired energy from floating barges at a cost of R218bn.
The deal is now under suspicion of malfeasance as the tender was written in such a way that it favoured the power ships, which were given unusually long 20-year contracts to fill a short-term gap. A disgruntled bidder, DNG Holdings, then made allegations of corruption, claiming that a “familial relation” of Mantashe and senior departmental officials had solicited bribes.
The ANC-led committee, which previously blocked a call by environmental groups for an investigation, has now decided to call all the parties to address it, but is still refusing a full-blown inquiry. Committee chair Zet Luzipo said: “There are things that are there in the public domain; we have to bring certainty and say who the people are [that] we think should assist us.”
While the committee did not reply to the first letter sent by activist Liz McDaid on behalf of 13 regional environmental and community groups in April requesting an inquiry, the speaker of the National Assembly, Thandi Modise, wrote to McDaid on Monday saying that the committee was addressing the issue. Modise acknowledged that it was parliament’s responsibility to take public participation seriously.
Luzipo said that Mantashe would be first on the list, followed by energy director-general Thabo Mokoena and deputy director-general Tseliso Maqubela. DNG Holdings would also be called, he said.
The allegations by DNG CEO Aldworth Mbalati, which are contained in an affidavit before the Gauteng High Court in Pretoria, are that he was called to a meeting by the two at which he was introduced to a family friend of Mantashe, Vuyani Gaga, and Luvuyo Makasi, who offered him “help” with his bid. When he refused, Mbalati said he was told he would get nothing.
The two officials have admitted being at the restaurant where the meeting took place but deny they discussed the tender. In his affidavit, Mantashe was silent on his relationship with Gaga, who was at one stage in partnership with his wife, Nolwandle.
The two owned a business together in 2014, which was the successful subcontractor in the now infamous R600m Eastern Cape pit toilet scandal.
Gaga is facing trial for corruption over the toilet tender.
The case that DNG has brought against Mantashe and the department is due to begin on September 9.
While Mbalati has threatened in his affidavit to lay criminal charges against those involved in soliciting the bribe, a company spokesperson said in response to questions that that had not been done to date but would be done at a later stage.
Karpowership SA is also facing headwinds from the department of forestry, fisheries and the environment, which has declined environmental approval for its projects.
The company says it is appealing the decisions.
The financial close for the RMIPPP projects has now been extended to September 30 after none of the successful bidders achieved close by the end of July
- BusinessLive
