Eskom tariff hikes: Will the ANC benefit?

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ID'S LANCE GREYLING WANTS MATTHEWS PHOSA TO COME CLEAN ON WHETHER ANC WILL BENEFIT FINANCIALLY FROM ELECTRICITY TARIFF INCREASES

‘Has the ANC lived up to its promise of divesting its shares in Hitachi Africa?'
Lance Greyling, the ID spokesperson for energy, has called on ANC Treasurer-General Matthews Phosa to come clean over whether the ANC stands to benefit financially from the proposed 35% electricity tariff increase per year for three years.

Much of the increases will be used to fund the construction of the coal-fired Medupi and Kusile power stations, in Limpopo and Mpumalanga respectively.
‘The biggest component of this expenditure is for boilers for the two power stations, a contract worth R38 billion (in 2008) that was awarded to Hitachi Africa, which the ANC's front company, Chancellor House, had a 25% stake in at the time,' Mr Greyling says.

‘This means that through Chancellor House the ANC's share of the deal was worth R5.7 billion, notwithstanding the fact that since then cost estimates have almost doubled,' says Greyling.

Current estimates are that costs have risen from R78 billion to R120 billion and R85 billion to R142 billion for Medupi and Kusile respectively.
Greyling says that despite assurances to the media from Phosa in February 2008 that the ANC would divest itself from the deal in a "transparent" fashion, it remains unclear whether the ANC has in fact done so.

Phosa said at the time that Chancellor House would appoint bankers to advise it on how to exit the deal.

"There will be no deals in the corner. It will be very transparent. It will be handled by a reputable bank," Phosa said.

He added that the decision to exit the deal was reached because "governance is an issue and there is public focus on this."
‘Ethical behaviour should not only be practiced because there is public focus on a deal or organisation, it should be maintained at all times. The ID is now wondering whether the shift of public focus away from the ANC's role in the deal means that Phosa and the ANC leadership have lost interest in doing the right thing,' Greyling says.

‘The ID therefore calls on the ANC to provide proof that it has lived up to its promise and that consumers will not be indirectly funding the ANC through the proposed electricity price increases.

‘Until then, based on past practice by the ANC, including the Arms Deal, Oilgate and a number of other transactions that helped fund the ANC's election campaign budget, the ID will expect the worst,' says Greyling.

‘The ID also calls on the Department of Public Enterprises to table legislation concerning the conduct of business between public entities and political parties. This was one of the recommendations made by the Public Protector in his initial investigation of this deal.'

Greyling says the ID will be asking the Minister a parliamentary question over when this legislation will indeed be tabled in Parliament.

‘This issue also yet again raises the urgent need for comprehensive legislation regulating political party funding in South Africa,' Greyling says.

‘The ID will therefore reintroduce its motion in Parliament for the establishment of an ad hoc committee to draft legislation for the regulation of political party funding.'

Statement issued by Lance Greyling, Independent Democrats spokesperson on energy, January 18 2010
Click to expand...

The general public needs to know about this – WE NEED TO TAKE A STAND AGAINST THIS
 
The arms deal was created as I tool for ANC Funding, maybe there coffers are running dry with all their partying. -

“So why don’t we create a tool for more party funding”
 
A while ago I read an article claiming that the cost estimate for the new power stations are way too high.

Now we all KNOW why. ANC greed.
 
I don't believe much of what the ID say.
The ANC won't benefit from this,the people getting screwed are the people who have to pay for electricity,and there are plenty of anc voters who have to pay for elec.
 
It's apparently not the first time the ANC cronies have delved into the electricity pot for some extra pocket money...

I came across a snippet about Tokyo Sexwale's one company (a generator company) getting 95% of government tenders.

One hand...
 
theratman said:
I don't believe much of what the ID say.
The ANC won't benefit from this,the people getting screwed are the people who have to pay for electricity,and there are plenty of anc voters who have to pay for elec.
Click to expand...

The ANC voting masses get screwed by the higher prices.

The prices must be raised because the company that sells the new power stations are selling them for more than their real price.

The ANC leaders own majority shares in that company.

Now please explain why you don't believe the ANC will benefit from this?
 
The problem is the masses are uneducated so they have no access to the rexources a lot of us have to find out these things. Thats exactly the way the anc wants to keep it.:D
 
It doesn't seem as if many people are getting the full picture. The ANC in Parliament stopped Eskom from building new power stations in 1998. The ANC was the ONLY reason why Eskom do not have enough capacity today. Then they suddenly have shares in Hitachi that to my knowledge has never built large boilers in SA. And Hitachi gets the contract for BOTH power stations at the same time - also something that Eskom have tried to avoid in the past. Keeping in mind that the government (read ANC controlled) is the sole shareholder in Eskom. And now power stations must be build at any cost and the people of ZA must pay!
When Eskom was recognized as a reputable and reliable power supplier, they never had problems (even during apartheid era/sanctions) to get international loans at very good rates. Now without any sanctions and an open market - nobody wants to loan them money (or at such a rate that it is unaffordable) because Eskom have lost their reputation (with good reason) as one of the best electricity suppliers in the world. Furthermore - no international bank will touch a deal on a power station it the process is not above board and squeaky clean.

This is just another very clever and innovative money making plan by the converted capitalistic ANC. :rolleyes:
Getting their voters to pay them as well.:twisted:

If the ANC had any integrity they would have said: We are solely responsible for SA electricity shortage and we will donate ALL profit from all our companies (including Hitachi) into the Eskom construction fund. :whistle:
 
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