Third Medupi delay - will heads roll? 

The announcement today by Eskom that the Medupi power station will not meet its December 2013 deadline and that first power from Medupi could only be expected in the second half of 2014 must be met with action by the Minister of Public Enterprises, Malusi Gigaba.

The latest delay forecasts a shortfall of power supply in 2014 of 700MW and comes at an expected 15% price increase, pushing the cost of the project from R91 billion to R105 billion. An additional R10 billion to taxpayers. 

Public Enterprises Minister, Malusi Gigaba, should keep his promises that no further delays will be tolerated and that "heads will roll" if the December deadline is not met. The Minister must now act on his word and make sure some heads roll and face the consequences of poor management at the project. This is the third time that deadline at the project has been extended. The date for commissioning the first Medupi unit was initially scheduled for the end of 2012 and then revised to May 2013 , to the end of 2013 and now to mid- 2014. 

The DA has continuously asked for answers and enforcement plans for the timely completion of Medupi power station, to ensure that South Africa's lights stay on. These include requests that:

• The Public Protector to investigate the maladministration of the project;
• A permanent mediation team from the Commission for Conciliation, Mediation & Arbitration (CCMA) is appointed to ensure peaceful negotiations and enacted agreements are undertaken by all parties;
• Chairman of the Portfolio Committee on Public Enterprises, Holmes Maluleka, call Minister Gigaba, Eskom CEO Brian Dames and Eskom Financial Director Paul O'Flaherty to appear before Parliament;
• The Portfolio Committee on Public Enterprises conduct an investigative oversight visit to Medupi;
• President Zuma presents his plan to prevent rolling blackouts similar to those in 2008.

Eskom's failure to effectively manage labour unrest and contractual underperformance pushes South Africa to the brink of another power crisis as experienced in 2008.

When the lights go out, it affects every South African and has the potential to negatively affect economic growth and job creation. Government should have addressed and mitigated the impact of delays to Medupi in order to avoid a situation where South Africa is left without power.

The people of South Africa expect the Minster and his government to act on their word. Heads must roll in light of the further delays. 

Statement issued by Natasha Michael MP, DA Shadow Minister of Public Enterprises, July 8 2013

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