Zille lobbies against Eskom loan

Opposition leader Helen Zille lobbied the United States and Britain not to support South Africa’s request for a World Bank loan to build a new power station, she said on Wednesday.

Zille, leader of the opposition Democratic Alliance (DA), told the ambassadors of both countries that granting the $3,7-billion loan would fuel corruption, as the African National Congress (ANC) has a stake in the company that won the tender for the project.

“We are asking them to use their leverage and say they will not grant the loan unless the ANC completely withdraws its 25% stake in Hitachi Africa,” said Zille after meeting with the ambassadors.

Eskom wants to use the money to build a mega coal-fired power station in Limpopo to help increase its power generation capacity.

Limpopo residents have also filed a complaint with the World Bank inspection panel about the loan, saying the construction of the Medupi power plant would significantly damage their health, livelihoods and the environment.

“It is completely corrupt for a political party to make billions of rands out of state tenders, when that political party is in control of the state,” Zille said.

‘ANC’s power will be corruptly entrenched’
“If the loan is granted under these circumstances, the ANC’s power will be corruptly entrenched and South Africa will become a criminal state,” she added.

In 2008, South Africa was hit by rolling blackouts as the power utility battled to meet demand.

Earlier on Wednesday, the ANC lambasted Zille’s efforts, saying she was acting against the interest of the country.

“Zille is opposed to the development of the country, the loan will help Eskom’s power supply. We happen to be in partnership with Hitachi,” said ANC secretary general Gwede Mantashe.

Eskom has already received loans from several European financial institutions.

The World Bank’s decision is expected on Thursday.—Sapa-AFP