Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Spam call epidemic: operators say their hands are tied

      10 July 2025

      Britehouse unit breaks free from NTT Data

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » South Africa power contracts face legal challenge over ‘corruption’

    South Africa power contracts face legal challenge over ‘corruption’

    By Agency Staff30 April 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    DNG Energy, a South African gas company, has sued to halt the government’s award of emergency power supply contracts, alleging that the process was tainted by corruption.

    Some of the eight bid winners, especially Turkey’s Karpowership, which operates mobile, vessel-based power plants, were granted unlawful exemptions from the tender requirements, DNG said in court documents. Its lawsuit could hamper attempts to bring new-generation capacity online and address a crisis that’s seen state utility Eskom subjecting the nation to intermittent electricity outages.

    Aldworth Mbalati, DNG’s executive director, said in an affidavit to the high court that he was approached by a businessman with “close ties” to energy minister Gwede Mantashe and government officials who offered assistance to win a contract. Mbalati said he was told the outcome would be pre-determined, but rejected their proposal, according to the affidavit. He didn’t identify the people who approached him because he intends filing a criminal complaint.

    Some of the eight bid winners, especially Turkey’s Karpowership, were granted unlawful exemptions, DNG said in court documents

    A Karpower spokesman at its headquarters in Turkey, which is under a national coronavirus lockdown, couldn’t immediately be reached for comment. A company representative also wasn’t immediately able to comment when contacted on their mobile phone. Sechaba Moletsane, one of three directors of Karpower’s local partner Powerships SA, didn’t answer a call to his mobile phone or respond immediately to a text message and an e-mail requesting comment.

    The tender winners have been contracted to generate 1.8GW of electricity by August next year, projects the government expects to bring in R45-billion of investment. The deals have yet to reach financial close.

    Two decades

    Karpowership, a unit of the Turkish Karadeniz Energy Group, won the bulk of the contracts, which will run for two decades — a deal worth an estimated R218-billion. That’s sparked concerns that the country’s may fail to reach carbon emission reduction targets.

    “People who go to court are answered in court,” Mantashe said by phone. “Editors are not judges.”

    His spokesman, Nathi Shabangu, said the department of mineral resources & energy, which Mantashe oversees, or the Independent Power Procurement Office will issue a statement on Friday.

    The Democratic Alliance on Thursday had a motion, backed by environmental activists, to have a parliamentary probe of the contract rejected.

    Gwede Mantashe. Image: GCIS

    Karpowership was granted exemptions with regard to conducting environmental assessments prior to submitting a bid as well as a so-called local content requirement, designed to stimulate South African business.

    The power vessels supplied by Karpowership “were originally designed to supply electricity to countries with little to no electrical infrastructure such as war-torn countries, or countries which had suffered natural disasters,” DNG said. “The fact that these ‘short-term emergency ships’ would operate for 20 years in three critical ports further prejudices the development of liquefied natural gas terminals and severely prejudices the development of a gas economy.”

    AmaBhungane reported on the court documents earlier on Friday.  — Reported by Antony Sguazzin, (c) 2021 Bloomberg LP



    DNG Energy Gwede Mantashe Karpowership top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDStv adds YouTube to its top-end PVR
    Next Article SAA exits administration after 17 months

    Related Posts

    Court bars South Africa from building new coal plants

    5 December 2024

    Karpowership deal is dead

    14 October 2024

    South Africa to embrace renewables in major policy shift

    8 July 2024
    Company News

    AI in project management: a new era of efficiency and transformation

    10 July 2025

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025

    Huawei supercharges South African SMEs with over 20 new eKit products

    9 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.