According to Engineering News’, board is facing calls to appear before Parliament with documents relating to the Ingula pumped storage scheme, which has allegedly seen costs spiral from R8.9-billion to R36-billion.
On July 27, President Jacob Zuma unveiled the first of four turbines at Ingula, which is on the border of KwaZulu-Nataland the Free State. A report broadcast on Carte Blanche on Sunday claims that Zuma’s appearance was a rushed pre-elections media stunt.
The pumped-storage hydroelectric plant uses water from an upper dam, which is released and passes through four 333 MW turbines before ending up in the lower dam during peak hours. The water is then pumped back up to the top to dam in low-peak hours.
Carte Blanche interviewed an insider and a mining expert who worked at Ingula, who said the underground contractorwas paid billions more than they should have in bonuses, advances and flimsy compensation events, even as the contractors skimped on safety.
The contractor – CMI Joint Venture – comprises of two Italian companies, which allegedly have a track record of over-runs and corruption. The third company is PG Mavundla Engineers, which is owned by Philani Mavundla, a friend of Zuma that offered to pay for Nkandla, according to Carte Blanche.
Democratic Alliance (DA) MP Natasha Mazzone told Fin24 “Eskom must explain what the situation is at Ingula,” she said. “We will call on Eskom to make their procurement policy and all tender policies public with regard to Ingula.
If the request fails, Mazzone will send a Promotion of Access to Information Act request to Eskom, with stringent deadlines to meet.
Mazzone has asked Public EnterprisesMinister Lynne Brown several times to release stakeholder contracts and to ensure all procurement and tender policies are made public. “Every time she agrees to do so, but she never does,” said Mazzone.
The Organisation Undoing Tax Abuse (Outa), which has its own whistle-blower input with regards to Ingula, said on Monday that it is time the government institutes a full independent inquiry into the financial management and auditing controls throughout Eskom.
Eskom has defended its contractor, its progress and procedures. Eskom spokesperson Khulu Phasiwe lambasted Carte Blanche for not allowing Eskom time to give its side of the story, with the MNet investigative programme highlighting that Eskom had missed its deadlines to respond and offered them an interview on Monday. However, Phasiwe told Fin24 that there is “no point” to have the interview now.
