The Portfolio Committee on Mineral Resources and Energy has rescinded a decision taken last year to conduct an inquiry into allegations of corruption and malfeasance during the process to appoint preferred bidders in the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
This resolution was taken following legal opinion from the Parliament Legal Service Division, which referred to a High Court judgment that dismissed, with costs, an application to set aside the Department of Mineral Resources and Energy’s (DMRE's) decision to appoint preferred bidders for the RMIPPPP.
"Parliament’s legal services division interpreted the court judgment to mean that the DMRE’s decision to appoint preferred bidders was above board, thereby making an inquiry a futile exercise. It is on this basis that the committee has rescinded its decision to conduct an inquiry," the committee said on March 8.
The North Gauteng High Court last year dismissed the application from natural gas company DNG Power to set aside the appointment of preferred bidders under the RMIPPPP and substitute DNG Power as the preferred bidder for three projects in place of Karpowership, its subsidiaries and/or associated companies.
In September, DNG Power said it believed important evidence would come to light during an investigation by the Directorate for Priority Investigations, or Hawks, that was under way, and that corruption allegations were also expected to be investigated by the Parliamentary Portfolio Committee on Energy.