Lobby groups slam R56bn contract with 27 power producers

SEVERAL lobby groups were angry after Energy Minister Jeff Radebe signed a R56 billion contract with 27 independent power producers (IPPs) this week.

The renewable energy project is expected to add 2 300 MW of electricity to the national grid over the next five years.

This would assist in denting the problem of unemployment, currently sitting at 26.7%.

However, the National Union of Metalworkers of SA (Numsa), Transform RSA and the Coal Transporters Forum were not impressed with Radebe’s decision to sign the longdrawn-out agreement with the IPPs.

Numsa and Transform RSA last month approached the courts wanting an urgent interdict preventing the signing of the agreements, pending the main application launched by the Coal Transporters Forum, due to be heard in a few months’ time.

However, Gauteng High Court judge Dawie Fourie ruled the application was not urgent, paving the way for the signing of the agreements.

Unperturbed, energy analyst Andrew Kenny dubbed renewable energy a disaster and an “absolute waste of money”.

This week also saw the South African Revenue Service announce it had collected R700 million less in taxes in the 2017/18 financial year than its February revised target.

Preliminary f igures showed it only managed to collect R1.216 trillion during the period, which is less than the R1.217 trillion the former Finance minister Malusi Gigaba, announced as a target during the Budget Speech in February.

In other news, the South African Chamber of Commerce and Industry Business Confidence Index declined by 1.3 index points from 98.9 points in February to 97.6 points in March.

On the transport front, South African Airways said it would only make a profit in four years after registering a further financial loss of R3.7 billion over the nine months to the end of 2017, as revenue dipped about R1bn below its forecasts for the period under review.

The embattled airline predicted its turnaround strategy would start reaping fruit in four years’ time.

Trending on social media was former president Jacob Zuma’s brief appearance in the Durban High Court yesterday.

Zuma, who faces one count of racketeering, two counts of corruption, one count of money laundering and 12 counts of fraud, is accused of taking bribes from French arms maker Thales over a contract worth R30bn during his time as KwaZulu- Natal MEC for economic affairs and tourism and then deputy ANC president.

Zuma, who resigned as president in February following a recall by his political party, is expected to appear in court again on June 8.

@luyolomkentane