Zuma must explain Eskom-ANC link

hat tip: Anonymous reader

Feb 15, 2010 2:20 PM | By Sapa

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The African Christian Democratic Party has called on President Jacob Zuma to respond to reports that the ANC stands to reap billions from power utility Eskom's proposed tariff increases.

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"Is it true, Mr President, that the ANC's share in this deal ... is worth more than R5.7 billion?" asked African Christian Democratic Party leader Kenneth Meshoe during the National Assembly during debate on last week's state of the nation address.

Eskom, strapped for cash to pay for two new coal-fired power stations, has controversially proposed electricity tariff increases of 35 percent a year for the next three years.

The African National Congress, through its Chancellor House investment company, reportedly holds a 25 percent stake - worth an estimated R5.7 billion - in Hitachi Power Africa, which is part of a consortium that has been awarded contracts to supply boilers to the new power stations.

Meshoe said there were compelling reasons to believe the ANC would benefit from the tariff increases, which he labelled "another form of corruption by the majority party".

He hoped the party had "taken steps to disinvest" its interest in Hitachi.

Meshoe also told Zuma "the writing was on the wall" for his party.

Noting that the ACDP had previously objected to the opening of Parliament being held in the evening last Thursday, instead of in the morning, Meshoe said it had proved prophetic.

"The sun is setting on the ANC, Mr President," he said, provoking laughter from opposition benches.