The Portfolio Committee on Electricity and Energy received a briefing yesterday from the Department of Electricity and Energy on the Battery Energy Storage System Independent Power Producer Procurement Programme from the Minister of the department, Dr Kgosientsho Ramokgopa.
The Minister told the committee that the engagement with the committee was to ensure accountability and transparency especially in the light of the recent allegations concerning conflicts of interest and procurement irregularities that have been levelled by the Umkhonto weSizwe (MKP) Party regarding the Battery Energy Storage Independent Power Producer Procurement Programme.
The Minister stated that the department had nothing to hide hence it agreed to appear before the committee and brief it as per the request of the MKP that brought the allegations. The Minister said: “We welcome the scrutiny from both the members of the committee and the public regarding the procurement process for the Battery Energy Storage System (BESS).”
He stressed the department’s commitment to ensuring that the procurement processes are upheld with the utmost integrity and fairness. “Our commitment to transparency is paramount. We must ensure that public resources are managed responsibly and that all stakeholders are held accountable,” said Dr Ramokgopa.
The Minister and the senior departmental officials and the Independent Power Producer (IPP) officials provided a comprehensive overview of the BESS procurement process. The presentation outlined the objectives of the program, which includes enhancing energy security, promoting Black Economic Empowerment (BEE), and ensuring transparency in the procurement of private sector generation capacity.
A key point of discussion amongst some committee members was the involvement of the former Chief Operating Officer of Eskom, who has been awarded a tender under the current IPP procurement process. Some committee members expressed concerns regarding the appropriateness of awarding contracts to an individual with such a recent history in a senior position at Eskom, questioning whether this could potentially lead to perceptions of favouritism or conflict of interest.
Members of the committee highlighted the importance of maintaining public trust in the procurement process and said that stringent measures should be implemented to prevent any appearance of impropriety. The committee stressed that it is vital for the integrity of the procurement process to be upheld and for public confidence in the decisions made by the Department of Electricity and Energy to be restored.
Members of the committee sought clarification on the governance mechanisms in place to verify declarations made by bidders, emphasising the need for due diligence beyond mere declarations to ensure compliance with BEE commitments. The committee questioned whether the procurement process had adequately considered the implications of awarding contracts to individuals with recent ties to Eskom.
In response to these concerns, Dr Ramokgopa reiterated the government’s commitment to fostering a diverse and competitive energy market. He said: “We acknowledge that while we have made progress, there is still much work to be done to ensure that the benefits of these projects are shared equitably among all South Africans, particularly those from historically disadvantaged backgrounds.”
Regarding the BESS procurement process the committee expressed concerns about the slow pace of the current IPP processes, questioning their effectiveness in contributing to industrialisation and economic growth in South Africa. In addition, members of the committee highlighted the perceived failure of the IPP process to create genuine long-term and sustainable transformation, particularly regarding the BEE within communities.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.