Parliament must probe spiralling cost of Ingula Power Station
It is reported that Eskom's Ingula project has trebled in price from R8.9bn to R23.8bn. As a result, electricity consumers will have to fork out the extra money through more tariff hikes.
I have today written to the Chairperson of the Public Enterprises Portfolio Committee, Peter Maluleke, to request a report on Ingula from Eskom to be tabled at the committee. I would also like more details on the tendering process and the credentials of one of the pivotal contractors for Ingula - PG Mavundla Projects, who has ANC Mayor Philani Mavundla as one of its directors.
Mavundla's businesses are seemingly a favoured beneficiary of government contracts. PG Mavundla Projects were allegedly a member of the joint venture involved in the controversial R700 million development of the uShaka Island project in Durban. Mavundla have also been reported as having had a role in a company called Rainbow Construction which was awarded a R129 million contract for the construction of the C-Max prison in Kokstad.
The Ingula project may be yet another instance of a politically-connected company getting a lucrative Eskom contract and then failing to deliver the goods on time and within the agreed price. The other famous example is the building of the Medupi Power Station by a firm linked to the ANC's investment arm Chancellor House which is due to come in at R68 billion over budget.
The public will continue to pay inflated prices for electricity as long as Eskom allows its tender processes to be circumvented by companies connected to the ANC.