Get more Mail & Guardian
Subscribe or Login

IPP deal would be ‘financial suicide’ ― Numsa lawyer tells court

A lawyer for the National Union of Metalworkers of South Africa (Numsa) argued in the North Gauteng High Court on Tuesday that the signing of a deal by power utility Eskom with 27 independent power producers (IPPs) may be financial suicide.

Numsa, along with Transform RSA, asked the court to grant an interdict against new Energy Minister Jeff Radebe to stop him from signing the renewable energy contracts.

The contracts were set to be signed earlier this month. But this was put on hold after Numsa and Transform SA instituted a last-minute court bid.

READ MORE: The IPP interdict ― Transform RSA’s murky management

The Department of Energy previously said it expected the signing of the agreements to go ahead as soon as the court matter was finished.

On Tuesday advocate Nazeer Cassim, for Numsa, told the court that some might view the signing of the renewable energy contracts a form of economic looting.

He added that Eskom was already broke and that tax payers would have to foot these bills if things didn’t go as planned.

“We are trying to avert a disaster,” he said.

Cassim said there already was an application by the Coal Transporters Forum to have the IPP agreements nullified. He asked that an interdict stopping the signing of the agreements be granted, until that application was dealt with.

He also told the court that the application by the Coal Transporters Forum would deal with arguments that the IPPs didn’t comply with statutory frameworks and that there was no public participation.

Advocate Barry Roux, for Eskom, argued that the parastatal’s financial situation could not be a reason to grant an interdict.

Roux added that a court could not grant an interdict against the signing of the IPP agreements without first reviewing and setting aside the Minister of Energy’s determination in terms of the Electricity Regulation Act.

Advocate Wim Trengove, for the IPPs, said all due processes were followed by the National Energy Regulator (Nersa) before they were entered into.

He said the applicants couldn’t argue that the procedures behind the granting of the IPPs were flawed until they brought an application to have these procedures reviewed.

Judge Dawie Fourie will deliver judgment on Thursday. ― Fin24

Vote for an informed choice

We’re dropping the paywall this week so that everyone can access all our stories for free, and access the information they need in the run up to the local government elections. To follow the news, sign up to our daily elections newsletter for the latest updates and analysis.

If our coverage helps inform your decision, cast your vote for an informed public and join our subscriber community. Right now, you can a full year’s access for just R510. Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Alex Mitchley
Alex Mitchley
South African Journalist at News24

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Andries Tatane’s spirit will drive fight against ANC in Ficksburg

The nascent Setsoto Service Delivery Forum is confident it can remove the ‘failing ANC’ in the chronically mismanaged Free State municipality

Paddy Harper: On gleeful politicians and headless chickens

Paddy Harper doesn’t know who to vote for yet, since the Dagga Party isn’t contesting his ward, but right now what to order for lunch is a more pressing concern

Malema: ANC will use load-shedding to steal votes

While on the campaign trail in the Eastern Cape, EFF leader Julius Malema, without evidence, claimed the ANC was planning to use rolling blackouts to ‘steal votes’

Khaya Koko: The looting isn’t over until the fat belly...

A song about Eastern Cape Premier Oscar Mabuyane preventing looting was way off the mark in a province riddled with corruption and theft
Advertising

press releases

Loading latest Press Releases…
×