Posts Tagged ‘nuclear deal’

We are ready to interdict the Nuclear Deal

November 6, 2017

The DA will not hesitate to interdict any attempt by Minister of Energy, David Mahlobo, to force through a nuclear deal despite the fact that South Africa does not need or cannot afford the estimated R1 trillion deal.

Media reports over the weekend indicate that the Energy Department has been forced to work overtime to ensure the Integrated Resource Plan (IRP) is ready by 14 November, a full four months ahead of when it was due.

With each passing day, it becomes clear that Minister Mahlobo was appointed to make sure that the necessary nuclear deal would be pushed through.

“We will not allow Mahlobo to appease his friends, the Russians, at the expense of millions of South Africans who are struggling to survive with no jobs in a flat economy, said Gordon Mackay, the DA’s Shadow Minister of Energy.

“The DA will use every legal and Parliamentary tool at our disposal to ensure that the generations to come will not be shackled to massive debt that will compromise South Africa’s future,” added Mackay.

Another Nuke Deal delay – Is cabinet at war with itself?

September 29, 2016

Confusion reigns regarding the commencement of the trillion rand nuclear new build programme, which was expected to begin officially on Friday.

This follows comments made by Minister Naledi Pandor at the National Development Plan Cabinet Briefing on Tuesday afternoon, where she indicated a further potential delay is expected.

The Kouga is a hub for renewable energy

The Kouga is a hub for renewable energy

In a response to a question from a Johannesburg based journalist regarding the commencement of the nuclear new build programme on Friday September 30th – Minister Pandor categorically stated that the Request for Proposal (RFP) could not possibly be issued as the underlying energy policy document determining South Africa’s energy mix (a precursory document) known as the Integrated Resource Plan (IRP) had not yet been passed by Cabinet.

While the statement by the Minister should be cautiously welcomed- as the procurement of costly nuclear technology cannot currently be justified– the Minister’s comments raise a series of very important questions:

    • If the RFP is to be further delayed on the basis of the need to adopt and updated IRP document – why then did Minister of Energy Tina Joematt-Pettersson announce to Parliament this month the nuclear new build programme would commence on September 30th?
    • If the RFP is not to be issued– why then has Tina Joematt-Pettersson misled Parliament?
    • Are Minister Pandor’s comments indicative of a Cabinet at war with itself, with Minister’s revolting against the President’s heavy handedness on the procurement of nuclear?
    • Is there a move by government to sideline the Department of Energy (DoE) procurement process in order to allow Eskom to procure nuclear directly and without DoE or parliamentary oversight?
    • If the RFP is not to be issued, why then the excessive “hardsell” of the benefits of nuclear power undertaken in great earnest by Eskom in the past week?

The cloud of confusion and suspicion hanging over the potential nuclear new build programme continues to mushroom.

Minister Joematt Pettersson, who has done her utmost to prevent oversight by Parliament of the nuclear new build programme, may now be guilty of misleading Parliament.

She has proven time and again that she cannot be trusted to act in the best interest of our people.

The time has come for the Minister to come clean or get out. The South African people will accept nothing less.

Zupta’s nuclear deal: either we end it or it ends South Africa

September 21, 2016

Jacob Zuma’s nuclear deal will be disastrous for South Africa.

It will literally bankrupt us, diverting billions of rands from poverty reduction projects, while producing a nuclear white elephant in two decades’ time.

Thyspunt is the preferred site for a proposed Nuclear Power Station

Thyspunt is the preferred site for a proposed Nuclear Power Station

But it will make a lot of money for Zuma, the Guptas and ANC cronies in the short-term and they will be long gone by the time we feel the real pain.

In Parliament last week, Energy Minister Tina Joemat-Pettersson confirmed that government is going ahead with the nuclear procurement process and Public Enterprises Minister Lynne Brown confirmed that information on the process will not be made public.

In other words: “We’re going to tie you into far more debt that you can ever repay, but this is none of your business.”

Last week, a DA-assisted Mail and Guardian investigation has revealed the first concrete signs of corruption associated with the nuclear deal.

A R 171 million contract for the “Nuclear New Build Programme Management System” has been issued, potentially irregularly, to the son of Vivian Reddy, a close friend and ally of President Jacob Zuma.

South Africans should be deeply concerned about the government’s nuclear project. Let’s be clear.

It is in no way motivated by a genuine desire to secure South Africa’s energy future in the most cost effective and sustainable way.

Rather, this huge project is going ahead because Zuma, the Guptas and other ANC elites stand to make millions in bribes and tenders.

Like the Arms Deal, Nkandla and the President’s new jet, there is no intention to use state resources judiciously in order to derive the maximum public benefit.

And like these ill-conceived projects, the nuclear deal will have the ultimate effect of stealing from all of us, but particularly the poor, in order to enrich a small group of connected ANC cadres.

The DA will do everything in our power to stop this deal, because the stakes could not be higher, nor the plan more foolish.

Why was the Nuclear Deal signed by Cabinet on 11 November 2013?

December 24, 2015

The 21 December 2015 gazetting of Cabinet’s decision to approve the procurement in the nuclear deal raises a remarkably important question:

Why did Ben Martins sign off the gazetted decision, as the former Energy Minister, and why was the Cabinet decision dated 11 November 2013?

Democratic Alliance Jeffreys Bay

For two years government and subsequent Energy Minister Joemat-Pettersson have consistently peddled the line that Cabinet had not approved the nuclear procurement process which will cost South Africa unaffordable billions of rands.

Clearly government has been committing a grand deception

For all of Minister Joemat-Pettersson’s term in Energy she must have known full well that Cabinet had agreed already to the nuclear build, yet she has led South Africa to believe that her frequent visits to Russia were merely market research. The truth that has now been outed is far more insidious.

It is clear that the decision to spend up to R1 trillion on nuclear builds was taken in 2013, and therefore engagements with foreign nuclear suppliers have been more serious than Tina Joemat-Pettersson would disclose.

The fact is that any promises to considering the affordability or economic impact before approval are also exposed as deceptions, and when Minister Joemat-Pettersson promised to do a “cost-benefit analysis” before approval, she was also deceiving us.

The South Africa public has been grossly misled.

In early 2014 Russian atomic energy agency Rosatom publicized that South Africa had already concluded a deal with it, and published details of the deal which our Energy Department re-published.

The Department’s speedy backtrack and denial of the deal appeared plausible at the time, but is now seriously in question.

Cabinet approved the procurement process, and months later the Russians believed they had a deal – any denials of this sequence have also been exposed as a deception.

“At the first opportunity in Parliament I will call for a debate in the House on the fact that Cabinet approved the nuclear deal in 2013, and has misled South Africa for over two years,” said Gordon Mackay, the DA Shadow Minister of Energy.

The nuclear deal has always been unaffordable and unnecessary, but has now also descended into the depths of grand deception.

Nuclear procurement irrational – DA

December 14, 2015

The Democratic Alliance has questioned the ‘sidelining’ of Parliament in the approval of the nuclear procurement programme.

motion of no confidence

Finance Minister Pravin Gordhan told reporters on Monday that the government would act in a fiscally responsible way and there would be a formal procurement process according to law.

“We can’t make commitments when we don’t know where we are going to get the money.”

Business Day reported on Monday that Cabinet gave the green light for the procurement programme last week.

If the process goes ahead, a request for proposals would be issued.

This means nuclear vendors would then submit proposals, which would include financing and pricing models.

DA MP Gordon Mackay said the decision was concerning.

“The decision by Cabinet to proceed without critical information regarding the potential procurement is blatantly irrational in light of South Africa’s very real and worsening economic challenges following the President’s bungle in the dismissal of the Minister of Finance and the subsequent muddle,” he said.

He said they were concerned that Parliament was sidelined by Cabinet in what would constitute South Africa’s biggest ever public procurement amounting to at least R1 trillion.

However, it is not necessary for Parliament to be part of the decision to start the nuclear procurement programme.

Parliament’s Appropriations Committee would get involved once the procurement process gets underway, he said.

Nevertheless, he believes it should have been taken past Parliament, given the size of the project.

“Broader questions as to the legality of Cabinet’s decision to proceed with procurement also exist with regard to the Public Finance Management Act (PFMA) which requires National Treasury sign-off of any major public procurement.

“Other than allocating R200 million for preparatory work for potential nuclear procurement during the Medium Term Policy Statement (MTBPS) in November – no such sign-off has been provided by National Treasury.”

Nomura emerging market analyst Peter Attard Montalto told Fin24 on Monday that if Cabinet had approved the programme, it was very serious.

“I believe this move is illegal under the Public Sector Finance Management Act. Major public procurement projects have to have National Treasury cost-benefit analysis and affordability sign off.”

Fin 24