THE DA is to call for a law that will prevent companies linked to political parties from tendering for business with the government or parastatals.

The opposition party said yesterday that it would call for a private members bill, criminalising the use of political connections to access government tenders.

This comes amid the controversy around the ANC's investment arm, Chancellor House Holdings.

The company has a 25percent stake in Hitachi Power Africa which has won a R38billion contract to supply boilers to Eskom's Medupi and Kusile power stations in Limpopo and Mpumalanga.

Chancellor House is expected to make R1billion in profits from the deal.

Opposition parties said the ANC's link to the deal was a conflict of interest .

On Sunday ANC treasurer general Mathews Phosa said Chancellor House would disinvest from Hitachi Power Africa.

But on Tuesday ANC sec-retary-general Gwede Mantashe said the ANC could not dictate to Chancellor House.

Also Popo Molefe, chairperson of Chancellor House Trust (the body through which the ANC benefits from Chancellor House investments), said neither the trust nor the ANC could make the decision to disinvest.

Molefe said yesterday that the company was independently run from the ANC.

UDM leader Bantu Holomisa said yesterday he was "concerned by the nexus between Eskom, Hitachi and Chancellor House - it seems like international companies and bidders in general are extorted to partner with ANC-aligned businesses".