Budget constraints have been highlighted as a challenge of the Department of Energy (DoE), but the new Minister Ms Mmamoloko Kubayi committed herself to doing more with less.

Ms Kubayi led a strong departmental delegation, consisting of Deputy Minister Ms Thobeka Majola and Director-General Mr Thabane Zulu, that came to brief the Select Committee on Economic and Business Development on its revised annual performance plan and strategic plan.

Ms Kubayi said she would have loved to have more. “In terms of the annual performance plan, the current budget adjustment does not even match the inflation. We are at a point where we have to reprioritise because we have to do more with what we have.”

She said more work was being undertaken with regard to the nuclear new build programme, PetroSA and SFF.

“Where there has been wrongdoing on issues of failed projects like Project Ikhwezi, where nothing happened and bonuses were paid we are calling for investigations to that,” she said.

“The court found against the minister of energy in the matter involving the nuclear new build. The department took a decision not to appeal that decision. We agreed after reflection that we erred in the process of IGAs, we should have submitted the IGAs to Parliament for scrutiny. As a corrective measure, we have agree to look at all the IGAs,” she said.

Ms Kubayi also explained more about nuclear energy to Members and said “it is part of our energy mix and a move towards the future”.

She said renewables in terms of wind and solar are not reliable and that the country is committed to the reduction of carbon emissions. She suggested that there must be public hearings where experts are invited to speak on the pros and cons and where the department is open about its intentions.

Members sought clarity on such issues as Eskom having to report to another Committee while its function is being administered by DoE. Clarity was sought on the Inga Dam project, independent power producers and transformation, good governance and financial management of entities, and whether the country could afford the nuclear.

Committee member Mr George Mthimunye wanted to know why the nuclear programme was still reported on, when the Minister had indicated that the programme was on ice following the Western Cape High Court judgement.

Committee member Mr Willem Faber pointed out that it would appear that the department had lied to the Committee about the sale of the solid oil stocks.

“The former minister (Ms Tina Joemat-Petterssen) denied that the solid oil stocks had been sold and said it was rotation. She talked about the R10bn in revenue, and yet the country stood to lose about R2.2bn. Who will take accountability for this big blunder and the fact that the Committee was lied to,” he said.

Mr Faber said Members were not happy with ministers lying when there were facts and also sought clarity on the affordability of the nuclear new build programme and the urgency with which the department is looking to move.

By Sibongile Maputi
23 May 2017