Gigaba did not act decisively: DA

Minister Malusi Gigaba
Minister Malusi Gigaba

Public Enterprises Minister Malusi Gigaba failed to act decisively on the Medupi power plant's failure to deliver electricity on schedule, the DA said.

"Instead of announcing whose heads would roll, as he has promised before, he revealed a soft handed response, including that he had sent his director general to France to express to Alstom his displeasure at the delays," Democratic Alliance MP Natasha Michael said.

"The minister is evidently backtracking on his promise. South Africans deserve more than mere expressions at this time."

On Monday, Eskom announced that the Medupi power plant, in Limpopo, would not be able to deliver its first power to the national grid in December 2013 as scheduled. In March, Gigaba said the December deadline would not change.

A month later, he reiterated his position: "I wish to make it unequivocally clear that I will not tolerate any delays to the delivery of this unit. Necessary penalties will be at hand should any delays be experienced. Heads will roll."

At the presentation of Eskom's annual results on Wednesday, Gigaba said government was disturbed by the delays at Medupi.

"Eskom remains Medupi's owner, and is responsible for the management and the execution thereof," he said at the presentation of Eskom's financial results in Johannesburg.

Gigaba said the delays raised questions about Eskom's ability to ensure electricity supply, manage a mega project, and the impact of the delays on the country's economy.

Gigaba said on Wednesday he fully supported penalties imposed by Eskom on contractors, including recalling performance bonds.

"Clearly a new effort is required to address efficiency during the project management and to ensure that this project begins to deliver."

The department had commissioned independent consultants to look into the problems, he said. They would help Eskom assess project and engineering capabilities and advise on any structural improvements that might be required.

They would also ascertain the full extent of the risk, caused by the delays, on the build programme and look into what caused them.

Gigaba said the scope of the study was broader than the Medupi project, as its mandate would focus on the entire build programme.

The department's director general and senior Eskom executives had been sent to France to meet Alstom, one of the contractors. They would express government's displeasure and get first hand information on the causes of the delays and remedial steps to be taken.

Gigaba said there was no need to hold a similar meeting with the other contractor, Hitachi, as it was still on schedule.

 

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