Kaunda Selisho

By Kaunda Selisho

Journalist


Tariffs would have had to increase to service debt caused by nuclear deal – Fuzile

Treasury was apparently not signing off on some deals as they were not in line with the rules of procurement processes.


Speaking during the first day of testimony of this week’s proceedings of the inquiry into state capture, former director general Lungisa Fuzile revealed that tariffs would have had to increase to service the debt caused by getting into the nuclear deal.

Fuzile was testifying on issues relating to the nuclear deal, SAA, PetroSA, the Engen deal and social grants, therefore giving evidence that corroborates the testimony of previous state capture witnesses.

Fuzile is returning to the stand after first appearing last year when he testified about what occurred in the days leading up to former finance minister Nhlanhla Nene’s firing in 2015.

Today, he revealed that the aforementioned issues were said to have “brought dissatisfaction” to then president Jacob Zuma with the work of Treasury.

According to Fuzile, the dissatisfaction came from the fact that Treasury was not signing off on some deals that it was requested to as they were not in line with the rules of procurement processes.

In addition to the rules of procurement processes, Treasury had to consider the financial implications and fiscal risks of greenlighting some of the suggested projects. One such implication would have been the exponential increase in tariffs in order to service the debt incurred by approving the nuclear project.

As such, there was talk of moving budget responsibilities to another state entity.

Fuzile’s testimony continues at the state capture commission, with questioning being lead by advocate Vincent Maleka.

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