News

Pravin Gordhan skips on Scopa and jets off to China

After former CEO Andre De Ruyter‘s rather bland appearance before Parliament’s Standing Committee on Public Accounts (Scopa) on Wednesday last week, the committee resolved to call Public Enterprises Minister Pravin Gordhan to the fold.

De Ruyter, who made jaw dropping allegations about Eskom corruption involving African National Congress leadership during a now infamous television interview with eTV’s Annika Larson, appeared a lot less chatty in front of Scopa last week.

The accounting body was hoping De Ruyter would name the alleged corrupt minister, but the former CEO deliberately side-stepped one of the biggest bombshells dropped in the eTV interview: Naming the high-ranking politician who uses Eskom as a ‘feeding trough.’

Advertisement

ALSO WATCH: Eskom a ‘feeding trough’ for ANC – De Ruyter

He did however make scathing accusations against Gordhan, who he blamed for his resignation while accusing the public enterprises minister of constant interference and trying to micro-manage daily operations at the struggling power utility.

De Ruyter also said he raised the issue of the mysterious high ranking politician with Gordhan, but the minister was allegedly already in the know about the fleecing activities, and took it a step further saying some ministers had to eat for the greater good.

Advertisement

Scopa then resolved to call Gordhan to account on Wednesday, but it would appear the hearing clashes with Gordhan’s pre-planned visit to China, in which the minister is expected to do damage control regarding Transnet’s locomotives impasse.

ALSO READ: De Ruyter ‘at pains to avoid’ naming politicians who knew about Eskom corruption

Gordhan’s long scheduled China visit

Gordhan is hoping to end a deadlock between the state owned rail agency and China Railway Rolling Stock Corporation (CRRC) e-Loco Supply and  fast-track the delivery of locomotives and spare parts from CRRC as part of a crucial overhaul of South Africa’s rail network.

Advertisement

CRRC, a Gupta-linked local unit of the Chinese parastatal was meant to supply Transnet with much-needed spare parts for some of its locomotives which are sitting idle.

The original deal with CRRC was halted in 2019 after investigations found that the contracts, valued at more than R50 billion, had been irregularly and unlawfully awarded.

Last year, Transnet turned to the courts to compel CRRC to supply it with spare parts, after the Chinese company refused.

Advertisement

The two companies later reached a settlement – a deal that would allow Transnet to procure spare parts to help maintain its locomotives.

But talks between the two faltered earlier this year after the rail utility said CRRC was unwilling to engage with authorities in South Africa, including the South African Revenue Service (Sars), in order to normalise its operations in the country.

Its unclear when Gordhan is expected to return to South Africa, but his department says it would discuss another date for him to appear before Scopa.

Advertisement

Additional reporting by Ntando Thukwana and Molefe Seeletsa

NOW READ: Gordhan to lead visit to China over Transnet locomotives impasse

For more news your way

Download our app and read this and other great stories on the move. Available for Android and iOS.

Published by
By Narissa Subramoney
Read more on these topics: EskomPravin GordhanTransnet