ANC coining it from Eskom electricity crisis

The ANC has made millions from doing business with Eskom, while South Africans continue to suffer the burden of load-shedding every day.

This is according to the DA’s, parliamentary leader, Mmusi Maimane, who said that President Jacob Zuma needed to stop blaming the electricity crisis on Apartheid.

“He should instead be telling South Africans the truth: that this is an ANC-made crisis from which the party has profited handsomely.”

The DA accused the ANC of setting up a fundraising company called Chancellor House, through which it has made millions from doing business with Eskom.

Through Chancellor House’s 25% stake in Hitachi Power Africa, the ANC benefited from the R38.5 billion contract to provide boilers for the Medupi and Kusile power stations, it said.

“As far back as 2009, the Public Protector confirmed there was a conflict of interest in the ANC doing business with Eskom. At the time when the boiler contract was awarded, Eskom’s chairperson, Valli Moosa, was also serving on the ANC’s fundraising committee,” Maimane said.

He said that the countless problems and delays in installing these faulty boilers is one of the central reasons why the new power stations promised to South Africans are more than 5 years behind schedule.

“While the ANC made a sizeable profit and eventually sold off its shares in Hitachi following public outrage, just one month later Chancellor House reportedly proceeded with plans to buy out Pfisterer, a company with a R550 million contract to supply Eskom with power grid accessories,” Maimane said.

The DA said that every passing month without a stable power supply means our economy loses the ability to create jobs.

“Unstable power means unstable water supply, chaos on our roads, loss of income to businesses, and disruptions to schooling and healthcare facilities.”

The DA called on President Zuma to announce clear measures to prevent political parties profiting from business with the state, at the state of the nation address on Thursday.

“And he must announce an independent review of Eskom’s awarding of contracts to companies with political connections,” Maimane said.

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