DA submits PAIA applications to Eskom

The Democratic Alliance (DA), on Friday, submitted Promotion of Access to Information Act (PAIA) requests to Eskom, in order to establish the exact facts surrounding the tenders awarded to Hitachi Power Africa, a company that the ANC is a minority shareholder of, as well as to request documentation regarding business dealings with other companies in which the ANC holds shares.

We made two applications in terms of the act, both to Eskom. The first application was for "any and all documentation" to do with the awarding of contracts to Hitachi Power Africa. In other words all documents specifically to do with the awarding of tenders to this company. The second application was for any other deal done with those companies in which the ANC investment wing, Chancellor House, has a share. To date there is no evidence to suggest that any other company in which Chancellor House has a share has done business with Eskom, but that does not mean that such deals do not exist. According to the act Eskom now has 30 days to respond.

It recently came to light that Hitachi Power Africa - which is 25% owned by Chancellor House - won a tender to supply boilers to two coal powered stations. This appears to be a gross conflict of interest and clearly blurs the line between party and state. The deal also raises numerous questions surrounding whether the deal was unduly influenced and whether proper procedures were followed.

The DA has therefore submitted a PAIA application to Eskom requesting that all documentation relating to any business dealings, tenders and contract awards with Hitachi Power Africa be made available.

In the interest of transparency it is important that the requirements set forth by the tenders; the bid committee's decision making processes and the subsequent awarding of tenders be reviewed, evaluated and scrutinised. The public has a right to know whether the ANC had influenced the awarding of state tenders or whether it is a mere co-incidence that an ANC owned company won a state contract.

ANC Secretary-General Gwede Mantashe said last month that, "there is nothing wrong with investing in public companies and Chancellor House has done nothing wrong," however it is certainly wrong for the governing party to fill its coffers with profits drawn from tenders awarded to them by government and is a classic example of a conflict of interest.

Statement issued by Pieter van Dalen, MP, Democratic Alliance deputy shadow minister of public enterprises, February 28 2010

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