ANC nixes investigation into electricity bidders
29 April 2021
The ANC today prevented the Portfolio Committee on Mineral Resources and Energy from performing its basic oversight, by refusing an investigation into the processes followed and the scoring in the Risk Mitigation Independent Power Producers Programme (RMIPPPP).
From the very start, this procurement process has raised eyebrows. While there is an undoubted urgent need to bring additional electricity generation capacity online quickly, this programme appears to have been tailor-made for certain outcomes and with certain bidders in mind. A number of questions have not been answered to the satisfaction of the DA. These include:
What role does political connections play in awarding these bids? This question arose after former advisor to ex-State Security Ministers David Mahlobo and Bongani Bongo appeared as one of the key beneficiaries in the 20-year powership deal – estimated to be worth R218 billion over the lifespan of the project.
What is the incremental cost of BBBEE requirements to each project? What is the impact of this on the price the bidder charges for electricity?