DA warns over reports of nuclear deal going ahead

MEDIA reports yesterday that the nuclear deal is going full-steam ahead are extremely concerning and will essentially guarantee that South Africa will be downgraded by further ratings agencies‚ the Democratic Alliance warned.

DA spokeswoman on public enterprises Natasha Mazzone said this would make recovering from junk status even more difficult.

She said that according to a confidential document‚ Eskom would issue a formal request in June for proposals for the R1-trillion contract for the nuclear build programme.

The winning bidder will be confirmed in March next year and the contract signed and sealed between December 2018 and March 2019.

S&P Global Ratings and Fitch downgraded South Africa to sub-investment grade – or junk – last week.

Mazzone said these downgrades had already had, and would continue to have, a devastating effect on the economy. Jobs would be lost and the cost of living would increase‚ which would hurt the poor.

“The ANC-led government is ignoring these facts and the massively negative effect on ordinary South Africans only reaffirms that they no longer put the best interest of our country or its people first.”

Mazzone noted that Fitch had stated “in no uncertain terms” that a key driver behind the decision was that “Eskom is expected to issue a request for proposals for nuclear power stations later this year [and] the Treasury will likely have to substantially increase guarantees to Eskom”. – TMG Digital