Motsepe denies benefitting from unbundling

Billionaire businessperson Patrice Motsepe yesterday denied claims that his energy company stands to benefit from power utility Eskom’s unbundling due to his proximity to the president and minister of energy.

Motsepe, who is brother-inlaw to President Cyril Ramaphosa and Jeff Radebe, is accused by political parties and trade unions of standing to benefit in the unbundling of the troubled utility by buying one of the entities that will be separated through his African Rainbow Energy and Power (AREP).

He said “having relatives in very high positions in government justifiably raises perception of favouritism or improper conduct” in the context of renewable energy independent power producers programme.

Motsepe added that his company struggled to acquire six solar photovoltaics projects awarded by the department of energy to an American company, SunEdison, to generate 398MW of renewable energy, until it was appointed as a BEE partner and committed an amount of R139 million.

Motsepe said he supported the developmental role of Eskom and didn’t support the privatisation of the power utility.

“I have, over the years, reiterated my support of the developmental role that Eskom has to play and to provide affordable electricity to all South Africans and, in particular, to the poor, unemployed, and marginalised,” he said.

“I, however, have never sup- ported the privatisation of Eskom or the sale of any of its entities or assets. AREP or any company that I’m associated with will therefore not participate [and] not be part of any sale or disposal of any entities or assets of Eskom.”

Motsepe, 57, said AREP had introduced additional governance and ethical rules and would engage with stakeholders and seek advice as to what additional measures can be put in place to deal with the perception of favouritism against his company. – ANA