ANC set to introduce independent power producers

There is no doubt that the ANC is set to introduce the controversial independent power producers in the energy sector come rain or shine.

This is despite a strong objection from the trade union movement that the IPPs are part of a corrupt scheme by elements of the ruling party to give contracts to their friends and allies.

ANC head of policy Jeff Radebe announced the party stance on the matter during a briefing to journalists on economic transformation at the ANC national policy conference in Nasrec, Johannesburg, on Saturday.

He said that the renewable energy programme had successfully unlocked R201 billion through the IPP programme.

The IPPa have been linked to a concerted attempt by the Gupta family to secure the energy sector so as to be the prime suppliers in coal, renewables and envisaged nuclear energy industries.

Cosatu and the South African Federation of Trade Unions (Saftu) rejected the IPPs, which they claim are not only connected with individuals with connections to the ANC but are a “back-door” attempt to bring the Guptas into the energy supply chain.

The Cosatu-affiliated National Union of Mineworkers described the IPPs as “shadowy” and “suspect”. The country’s biggest union, the National Union of Metalworkers of South Africa, a Saftu affiliate, said the closure of five power stations in Mpumalanga was part of government and the ANC’s plan to sacrifice the jobs of the poor. At least 10 000 jobs would be shed in the process.

Radebe said government had procured 6 244 megawatts of renewable energy with 3 175MW already being supplied to the grid.

“We are working towards procuring IPPs in the gas and coal sectors,” Radebe said.

In another controversial project Radebe said government had implemented 1064 new locomotives with significant localisation identified.

This comes in the wake if a claim by EFF leader Julius Malema that Transnet was involved in a corrupt tender to procure 1064 locomotives.

The contracts were allegedly given to four foreign companies at inflated prices allegedly to benefit certain government and Transnet officials.

Malema laid criminal charges against Transnet management and threatened to report the four firms to the governments of their countries.

The firms are Bombadier of Canada, General Electric from the US, China South Rail and China North Rail, both from China.

On social transformation, Radebe said the health of South African children had improved with a mortality rate for children under fivedropping from 40 per 1000 live births in 2014 to 37 deaths per 1000 in 2015. But this was slightly offset by the decline in birth rate and the low population trajectory in the country.

The ANC national policy conference continues.
-ericn@citizen