Karpowership SA rejects De Ruyter’s ‘insinuations’

IN THE wake of former Eskom CEO Andre de Ruyter’s famous interview, Karpowership SA has denied allegations of impropriety. The organisation said it would request a retraction and clarification of comments in which he alleged the Turkish company had “an extensive legacy of alleged corruption, breaches of contract and abuse”.

“The comments broadcast in the eNCA programme inferred, if not directly represented, that Karpowership is corrupt. Karpowership unequivocally and unconditionally denies any allegations of impropriety on its part and rejects and dismisses insinuations of corruption,” it said.

Karpowership SA seeks to provide more than 1 200MW of power to South Africa’s grid through its three gas-power projects in Ngqura, Richards Bay and Saldanha Bay, but has been met with stiff opposition and litigation due to the nature of the 20-year contracts and the expense.

The organisation said unfounded allegations of corruption related to the Karpowership projects had been repeated often, relying on speculation and innuendo, and this could not be allowed to continue unchecked.

In the interview, De Ruyter said: “There is absolutely no justification for concluding a 20-year agreement with a company that can raise the anchor, literally, and sail away with the asset the country has paid for.”

Karpowership SA said the government would be paying for the power and not the assets. De Ruyter did not respond by the time of publication.

Meanwhile, the Organisation Undoing Tax Abuse (Outa) said the new regulations of the state of disaster in response to the energy crisis allow for a quick contract with Karpowership by fast-tracking or bypassing environmental authorisations, procurement rules, public participation and even legal challenges.

Outa executive director advocate Stefanie Fick said, “The regulations effectively remove proper oversight, regulatory processes and public participation in decisions of enormous public importance and cost.”

Outa was concerned that the Karpowership contract would be fasttracked through the system without due process. It has begun a court case to overturn the electricity state of disaster and another court case to review and set aside the National Energy Regulator of SA’s decision to award generation licences to Karpowership SA.