Decision to build Medupi and Kusile 'was taken in a crisis behind closed doors'

Energy Research Centre Researcher at UCT Hilton Trollip provides an incisive breakdown of how Eskom got to where it is.

He talks to CapeTalk's John Maytham about how the Medupi and Kusile power stations were created and the challenges faced.

He explains clearly how the ANC's investment arm Chancellor House had a stake in Hitachi as far back as 2006. The company created Hitachi Power Africa and secured tenders worth billions when Valli Moosa was Eskom board chair in 2008.

The ANC involvement with Hitachi Power Africa which secured a multibillion-rand contract with Eskom has been a source of controversy for years.

People should have been held to account a long time ago, but they weren't.

Hilton Trollip, Energy researcher - UCT Energy Research Centre

A situation has been created where contracts are not handed out according to least cost or best performance but rather according to who you know.

Hilton Trollip, Energy researcher - UCT Energy Research Centre

The decision to build Medupi and Kusile was taken in a crisis behind closed doors when Eskom refused in 2005 to implement government policy...to build independent power producers.

Hilton Trollip, Energy researcher - UCT Energy Research Centre

He says suddenly Eskom sprang these two mammoth projects on the country.

Trollip explains why unbundling of Eskom is a good idea.

It's simply too big and complex an organisation to be ruled by command and control from top down.

Hilton Trollip, Energy researcher - UCT Energy Research Centre

He says even died-in-the-wool state-owned supporters are changing their tune and saying the only way it can become honest is if it is made to compete.

This unbundling decision by the president, I now support it fully.

Hilton Trollip, Energy researcher - UCT Energy Research Centre

Listen to the insightful breakdown below:


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