DA informed of new Hitachi power station contract

The Democratic Alliance (DA) has been informed by reliable sources that Hitachi Power Africa, the company owned in part by ANC front company Chancellor House, will be supplying equipment, including turbines, to the R16-billion Ingula Pump Storage Power Station.

We understand that the turbines alone constitute at least one-third of the cost involved in the project, which would imply that the ANC government has awarded another multi-billion rand contract to a company part owned by the ruling party.

The ANC, on the one hand, and Hitachi on the other, need to urgently clarify the situation, and, more generally, reveal their shareholders to the public. If Hitachi, and therefore Chancellor House, are benefiting from another new power station, then a number of points need to be clarified as a matter of urgency:

Firstly, how is it that this contract has been kept under wraps?

Secondly, is there evidence that the tender process was open, fair and not weighted towards a company part-owned by the ANC?

Thirdly, are there other contracts that have been awarded to Hitachi?

Fourthly, what is the extent of this contract, as well as any other contracts that have been awarded to Hitachi?

Fifthly, how much does the ANC stand to benefit from this?

I believe that this matter must come before Parliament; that Eskom must as a matter of urgency address explain themselves if yet another dubious contract has been awarded to a company part-owned by an ANC front. I will also pose parliamentary questions on this matter at the next possible opportunity.

Statement issued by Alf Lees, MP, Democratic Alliance member of the NCOP for KwaZulu Natal, April 22 2010

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