Hitachi Power Africa sets the record straight
Hitachi Power Africa, the main contractor for the boilers on the Medupi and Kusile Projects, has set the record straight around its shareholding and stakeholder partnerships in South Africa.
To date Hitachi Power Africa has paid no dividends to Chancellor House. When dividends are paid to Chancellor House in the future it is likely to be less than R50 million for both contracts over the next eight years. If they in turn declare and pay a dividend to their shareholder, the Chancellor House Trust, any distribution made by the Trust to beneficiaries will go to natural Black persons only - people belonging to specific categories such as youth, women, rural and disabled. This excludes benefits being paid to political parties.
Speaking to journalists today at the company's offices in Sandton Hitachi Power Africa chief executive, Johannes Musel noted that Chancellor House Holdings would not earn billions of Rand as a result of its interest in Hitachi Power Africa. "Contract value, in this case R38.5 billion for both the Medupi and Kusile boiler contracts, does not equal profit".
The company in a consortium with its holding company, Hitachi Power Europe, successfully bid for, and won the Medupi Power Station boiler works contract in October 2007. The Kusile Power Station contract was awarded two months later. An independent audit report by Deloitte & Touche (which is on the public record) found the tender evaluation to have followed due process and the subsequent award of the contracts to be fair.
In terms of the Eskom contracts Hitachi Power Africa is required to be BEE compliant. For this reason HPA had to ensure that the Trust Deed of the Chancellor House's shareholder, the Chancellor House Trust, stipulated beneficiaries who are natural persons.