Fri Oct 21 20:41:09 SAST 2016

twist in ANC FRONT COMPANY investment

By Zukile Majova | Apr 12, 2010 | COMMENTS [ 0 ]

THE ANC has continued to send mixed messages about the future of its investment company, Chancellor House, with party treasurer-general Mathews Phosa saying the company would pull out its investment in a company that has won multi-billion rand contracts from state-owned power utility Eskom.

But ANC general secretary Gwede Mantashe told reporters last week that the pressure on the ANC to pull out of Hitachi Power Africa was driven by an agenda to bankrupt the ANC and a "misnomer" that the ANC would make as much as R1billion if the loan were granted.

Phosa said the 25percent shares held by Chancellor House in Japanese company Hitachi Power Africa posed a conflict of interest.

He said the ANC front company created an impression that the ANC was "taking advantage of the taxpayer to raise money".

Hitachi Power Africa has won the contracts to supply boilers to Eskom's new coal-fired power stations Medupi and Kusile.

The DA said the announcement that the ANC would disinvest from Hitachi Power Africa came too late.

Eskom has just secured a R29billion loan from the World Bank, with Chancellor House expected to make as much as R1billion for its work for Eskom.

Last week the party lobbied influential players in the World Bank to vote against the approval of Eskom's application or attach conditions to the loan.

In response Mantashe labelled the DA as no longer an "opposition" party but an "oppositionist" party.

The DA said Phosa's declaration that the ANC would sell its shares from Hitachi Power Africa meant the party would be in line to make an enormous profit from the deal.

"The fact is that even by selling their shares in Hitachi Power Africa 'within the next six weeks', as Phosa has now stated that Chancellor House will do, the ANC will stand to make an enormous profit on the deal," the DA said yesterday.

"The value of their shares in the company will no doubt have risen exponentially over this period of time, and particularly after the World Bank loan was granted.

"The share value of Hitachi will now already have factored in the windfall that Hitachi will receive as a result of the World Bank loan.

"The ANC, through Chancellor House, has now already made their killing."


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