https://www.engineeringnews.co.za
Africa|Energy|Financial|Gas|Power|Projects|Resources|Environmental
Africa|Energy|Financial|Gas|Power|Projects|Resources|Environmental
africa|energy|financial|gas|power|projects|resources|environmental

South African emergency power plan hit by new graft allegations

13th October 2021

By: Bloomberg

  

Font size: - +

DNG Energy, a losing bidder for State contracts to supply emergency power in South Africa, made fresh corruption allegations against a winning bidder, Karpowership, and a government official.

In an October 12 supplementary affidavit to court papers, the first of which were filed in April, South Africa-based DNG alleged that businessmen who are now partnering Turkey’s Karpowership approached the firm’s chief executive officer seeking a bribe. In exchange, they would ensure that DNG won a contract, Aldworth Mbalati, the CEO of DNG, said in the papers, adding that he spurned their offer.

“It is clear that even at a rudimentary level that some sort of agreement was entered into between the fifth respondent,” Karpowership, and the businessmen, he said. That was “in return for a stake in the fifth respondent, as was the proposal to DNG, which I declined.”

Powergroup, Karpowership’s local partners, and Karpowership denied the allegations.

DNG’s case, along with environmental challenges, has made the plan to secure 2,000 megawatts of emergency power by August next year unlikely. The deadline for financial close of the projects, initially set for July 31, has been extended until the end of January and DNG’s case will be heard at the end of November.

That means relief from intermittent power outages that plague South Africa will be delayed.

Karpowership, a Turkish company that operates gas-fired plants from ships, won the bulk of the government contracts. Other successful bidders include Scatec ASA and Electricite de France SA.

Mbalati made earlier allegations against energy department officials, saying they attempted to secure a bribe for him in return for helping him secure a contract. Those allegations were denied and the Independent Power Producer Procurement Programme said DNG was disqualified because its bids fell short of requirements.

Mbalati, in his Oct. 12 statement, also questioned how a Department of Mineral Resources and Energy official could afford the assets he owns on his salary.

The department didn’t immediately respond to an emailed request for comment.

Edited by Bloomberg

Comments

Latest News

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.114 0.169s - 162pq - 2rq
Subscribe Now