You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Mantashe denies corruption in electricity feud

In court papers responding to allegations by a losing bidder in a power tender.
Image: Waldo Swiegers/Bloomberg

South African Mineral and Energy Resources Minister Gwede Mantashe and the two most senior officials in his department denied corruption in court papers responding to allegations by a losing bidder in a power tender.

Director-General Thabo Mokoena confirmed that he and his deputy met Aldworth Mbalati, executive director of DNG Energy Ltd., at Kream Restaurant in Pretoria in November, but denied they tried to secure a bribe. Mantashe denied allegations by Mbalati that a business associate and a relative of the minister tried to interfere in the process of awarding contracts.

Mbalati, whose company unsuccessfully bid to build three gas-fired power plants in a tender for emergency power, said in the case he filed that two unidentified state officials, and the two alleged associates of Mantashe, met with him at Kream. He said one of the government officials told him he “must be part of the system” to win a contract.

Mokoena said he made the point at the meeting that the department and the Independent Power Producers Procurement Programme Office were running “a transparent and fair process,” according to an affidavit filed at the Pretoria High Court. “I added that if the entity Mr. Mbalati represented wished to succeed in the process, it would need to comply with all of the tender requirements,” he said.

$16 billion

The court case, which threatens to disrupt the provision of power to an economy that’s suffered intermittent outages for more than a decade including this week, is scheduled to be heard in July. Mbalati is seeking to have his company replace Karpowership, a Turkish operator of ship-mounted gas-fired power plants, in a contract for the supply of 1,220 megawatts of power over 20 years. That contract is estimated to be worth R218 billion ($16 billion).

The IPPP Office, in its own affidavit, said DNG’s bids didn’t qualify because the company couldn’t prove it had financial backing, owned the land where plants were to be built, complied with environmental requirements and had access to sufficient fuel.

Mokoena identified Luvo Makasi, a businessman and former chairman of South Africa’s Central Energy Fund, and a person called Vuyani Gaga as the other attendees at the meeting. He said Makasi isn’t a business associate of Mantashe’s and no relative of the minister’s attended. Mantashe, in his own affidavit, denied that Makasi was an associate and that Gaga was a relative.

Mokoena said his deputy, Tseliso Maqubela, had said to Mbalati that he needed to comply with the tender requirements in order to succeed. Maqubela said in his affidavit that he agreed with Mokoena’s account.

Makasi told Bloomberg he organised the meeting because he hoped to partner with Mbalati in the bid and Mbalati had requested that he do so.

Jilted partner

“I was involved in the process because, we were going to partner on the bid but he did not honour his commitment on the deal,” he said by text message.

In a separate document that he forwarded to Bloomberg, Makasi said he didn’t agree with Mbalati’s version of events and he thought the DNG bid had failed because it didn’t meet requirements.

DNG said it stands by its founding affidavit.

“What is coming out of respondents’ affidavits and other parties’ responses will be dealt with properly in court, at the right time,” it said by email.

amaBhungane, a South African investigative news organisation, reported on Mokoena’s affidavit earlier.

© 2021 Bloomberg

COMMENTS   11

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

It’s the same story over & over & over & Over. I am not guilty UNTIL AFTER COURT. Then, it’s I would like to thank God and my family for standing by me and ‘WE ARE GOING TO APPEAL.” DRAIN THE SWAMP

First deny; then da detail emerges. How much money do these politicians want to accumulate? How much is enough?

Like Ms L Sisulu; Uncle Gwede are untouchables in the party.

Yip they are the untouchables, and a host more.

By now we know all investigations into any malfeasance is just a front. Keeps a lot of the voting fodder quiet, because they just don’t get it.

“Mantashe denies corruption in electricity feud”

Silly headline! What do you expect an ANC politician to say, “I’m guilty, I’m corrupt”?

Old Zupta has taught S.A. well: “It wasn’t me, it was those apartheid spies”, “I can’t remember (being corrupt”), “I didn’t know what was going on”, “I’m not accountable, it was the office cleaner who stole the money”, “I’m well respected, I’m a good person, I’m …..”

Heard it all before.

If you vote for the ruling party you are complicit.

I love it. This is better than any TV show… All the while the poor suffer with job losses etc.

But can we really have sympathy for electorate who continuously elect these corrupt leaders. Let them eat pap.

Judeo-Christian or not, you’ve got to be encouraged by this prophetic word in context of this tool and the rest of the current SA government:

Fools will no longer be highly respected, and crooks won’t be given positions of honor.
Isaiah 32:5 CEV

Really?

Mantashe was the spin doctor for the ANC while under Zuma.
Enough Said.
They denied everything under ZUMA … and then the cracks appeared. Fullstop.

Does the ANC even have an anti-corruption handbook? They should publish it if they are serious about ending corruption. I’m sure they don’t understand the true meaning of the word.

Out of the R26 paid per toilet roll at Eskom, how many Rands went to the ANC and their bloated payroll?

To quote another famous prostitute “Well he would, wouldn’t he.”

Corruption is the blood in their veins, how can they not deny that??

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:
Click a Company: