SCA's Eskom tender ruling shows nuclear contracts risk political interference
10 December 2015
The Democratic Alliance (DA) welcomes the decision by the Supreme Court of Appeal today to set aside the awarding of a R4 billion Eskom tender to Areva on the basis that the process was procedurally unfair and that the decision was based on criteria deemed irrelevant by the court.
The SCA found that there was no rational basis to awarded the tender to Areva when the preferred bidder was in fact Westinghouse. Instead the tender was awarded citing "strategic considerations" - a smokescreen for political interference.
The ruling vindicates the view long held by the DA that there is large-scale corruption in the awarding of Eskom tenders. Today's ruling follows in the wake of the damning finding against Hitachi by both the United States Securities Exchange Commission and the African Development Bank, who found evidence of political interference in the awarding of tenders for the Medupi build, by Eskom.
The firing of Nhanhle Nene from the office of Finance Minister, by President Zuma is directly rooted in Nene’s opposition to the planned R1 trillion nuclear build which Zuma is intent on ramming through. With Nene now out of the picture, the last voice of reason in Cabinet against the Nuclear splash-out has been silenced.
Eskom CEO, Brian Molefe, recently stated that Eskom would be involved in funding the build, but given the numerous allegations of corruption at Eskom, and Court rulings against Eskom tender awards, this is a recipe for disaster with a door for corruption having been opened wider.
All contracts for the nuclear build should be awarded on the basis on economic, technological and environmental considerations in the interests of fiscal prudence and value for money - not on the basis of political considerations and patronage to the ANC.
The DA maintains that the nuclear build is unaffordable and ill-advised and will continue to appose the project on all fronts.
Issued by Gordon Mackay, Shadow Minister of Energy, DA, 10 December 201
