DA submits PAIA applications on PetroSA/Gazprombank deal and 2500MW nuclear capacity procurement

13 December 2023

The DA is deeply concerned about the recent developments surrounding the PetroSA/Gazprombank deal and the determination to procure 2500MW of new nuclear capacity. Today, we will utilise the Promotion of Access to Information Act (PAIA) to obtain the Records of Decision related to these critical matters.

We seek access to all relevant documentation, including bid criteria, scoring, feasibility and cost-benefit analyses, and any documentation addressing the National Energy Regulator of South Africa's (NERSA) suspensive conditions regarding the s34 determination. Our objective is to scrutinise and ensure transparency in the decision-making process, shedding light on the motivations behind these agreements.

It is evident that the Department of Mineral Resources and Energy (DMRE), PetroSA, and the ANC government are pushing to finalise these deals before the upcoming national and provincial elections. The haste raises questions about the rationality of these decisions, especially given the potential impact on our national security and economy.

The DA contends that the rush to conclude these agreements necessitates a thorough examination of the decision-making process. We believe that any failure or discrepancies found may warrant a review and possible overturning of these decisions, similar to what transpired with the previous nuclear deal.

Furthermore, we seek clarity on the involvement of state actors in the PetroSA deal and question the wisdom of choosing Gazprombank as the preferred investment partner. This decision not only exposes South Africa to the risk of secondary sanctions but also contradicts the advice of National Treasury. The apparent disregard for these considerations by the PetroSA board and Cabinet demands an explanation.

The recent developments suggest potential state capture in the energy sector, and we categorically reject any form of undue influence, particularly from foreign governments. The choice of Gazprombank and the endorsement of a foreign government in the nuclear sector require careful scrutiny.

The DA is committed to safeguarding our economy and national security. We will rigorously scrutinise these transactions and take all necessary measures to ensure accountability and transparency in decision-making. Our focus is on building a resilient economy and securing trade deals that support sustainable economic growth for the benefit of all South Africans.

Please find attached:

1. PetroSA PAIA and Annexure.

2. Nuclear Procurement PAIA and Annexure.

Issued by Kevin Mileham, DA Shadow Minister of Mineral Resources and Energy, 13 December 2023