US Treasury sanctions Gupta brothers and Salim Essa
MINERAL Resources and Energy Minister Gwede Mantashe announced yesterday that the government was about to conclude its new long-term plan for the electricity sector, the Integrated Resource Plan (IRP).
Mantashe told the Africa Oil and Power Conference in Cape Town that the plan would lay the foundation for investment in the country’s power generation.
“By Wednesday, I am very hopeful that the IRP would be concluded, and we will gazette it,” he said.
“Such an investment should have the impact of lowering the cost of doing business in the country,” he added.
Mantashe said the IRP made provision for gas to power projects, and that the government had announced that the Coega Special Economic Zone (SEZ) in the Eastern Cape would be the site of the first liquefied natural gas import terminal.
The Coega SEZ in Mandela Bay comprises a renewable energy components factory, a gas-to-power plant, a solar rooftop project, and an oil refinery.
“The site will lay the foundation for new gas-to-power plants. It will also be the point of converting existing power plants from diesel to gas.
“We further intend to use the location as a base for importing feedstock for the gas-to-liquid refinery in Mossel Bay,” Mantashe said.
In terms of mining, Mantashe previously said the government intended separating the petroleum resource regulation from the Minerals and Petroleum Resources Development Act.
“To this end, I will soon be tabling a Petroleum Resources Development Bill before the Cabinet,” he said.
The government was convinced that it would add to the economic growth if petroleum was developed into a fully-fledged sector.
Mantashe said the amendment of the Gas Act of 2001 would soon be tabled in the Cabinet.
“We are convinced about the importance of all energy carriers in our energy mix,” he said.
The government was pushing for the reduction of the cost of electricity to save the economy from complete collapse, Mantashe said.
He said that the country had witnessed how high costs and unreliable supply of energy have an adverse impact on the productive sectors of the economy.
“In this regard, we believe that lowering the cost of energy should be a major area of focus in order to enable the growth of the extractive and manufacturing sectors.
“Resource extraction requires vast amounts of energy.
“Consequently, when electricity costs are high, sustaining investment in resource extraction becomes a challenge,” he said.
The minister said in Johannesburg last week that a reliable and secure supply of energy was an urgent priority, and for this reason, the government had started engagements with coal producers and Independent Power Producers (IPPs) to discuss the role of electricity in contributing to economic growth.
He said that the government was talking to coal producers and IPPs to lower their electricity tariffs. THE US DEPARTMENT of the Treasury’s Office of Foreign Assets Control (Ofac) has sanctioned the Gupta family over leveraged overpayments on the South African government contracts, bribery, and other corrupt acts to fund political contributions and influence government actions.
The Ofac said it specifically designated Ajay Gupta, Atul Gupta, Rajesh Gupta, and Salim Essa for their involvement in corruption in South Africa pursuant to Executive Order 13 818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.
“The Gupta family leveraged its political connections to engage in widespread corruption and bribery, capture government contracts, and misappropriate state assets.
“The Treasury’s designation targets the Guptas’ pay-to-play political patronage, which was orchestrated at the expense of the South African people,” said Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence.
“The Guptas and Essa have used their influence with prominent politicians and parties to line their pockets with ill-gotten gains. We will continue to exclude from the US financial system those who profit from corruption.”
The Department said it supported the anti-corruption efforts of South Africa’s independent judiciary, law enforcement agencies, and the ongoing judicial commissions of inquiry.
“Moreover, we commend the extraordinary work by South Africa’s civil society activists, investigative journalists, and whistle-blowers, who have exposed the breadth and depth of the Gupta family’s corruption.”it said.
The family left South Africa for the United Arab Emirates after former President Jacob Zuma fell from power.