ANC must immediately disinvest from R18 billion energy project

11 September 2015

I will today write to the Treasurer General of the ANC, Zweli Mkhize, requesting that he action the immediate disinvestment by the ANC’s investment company, Chancellor House, from the proposed R18 billion power station project in Colenso, KwaZulu Natal. 

This follows reports today which confirm that Chancellor House is a shareholder in the R18 billion coal fired power project, which aims to add over 1000MW of power to the national grid.

This is not the first time the ruling party has effectively sought to make profits from the debilitating energy crisis it created. Through Chancellor House’s 25% stake in Hitachi Power Africa, the ANC benefitted from the R38.5 billion contract to provide boilers for the Medupi and Kusile power stations.

It is ethically shameful that the ANC sees it fit to use South Africa’s energy crisis as an opportunity to fill its election slush fund ahead of next year’s local government elections.

It seems now that the ANC is feeling the pinch ahead of next year’s election, Zweli Mkhize is willing to renege on his public statements last year in which he claimed that Chancellor House should not hold direct government contracts and should avoid all conflicts of interest. The Treasurer General should make true of this commitment and see to it that the ANC does not benefit financially from the energy crisis it created. 

The current energy crisis has caused economic growth to grind to a halt, leaving unemployed South Africans very little hope of finding work. To overcome it will require political will and wholesale changes to national energy policy, not unscrupulous fundraising by the ANC ahead of next year’s election. 

The DA believes in a society based on fairness in which political parties are guided by the rights and interests of all South Africans, not their own financial well-being.

Statement issued by Gordon Mackay, DA Shadow Minister of Energy, September 11 2015