A court ruling that the government failed to comply with the constitution when it initiated a process to build new atomic power plants has dealt a major blow to President Jacob Zuma’s nuclear ambitions.
The Western Cape high court on Wednesday ordered the government to hold public hearings and a parliamentary debate on the nuclear programme, which may cost as much as R1 trillion. It set aside a 2015 decision to procure new nuclear capacity and nullified co-operation accords the government has concluded with countries including Russia, the US and South Korea. Judge Lee Bozalek ordered the state to pay all costs.
Zuma has championed the building of as many as eight reactors that would generate 9,6GW of energy starting from 2023 — a plan opposition parties say is mired in corruption.
Civil rights groups, including Earthlife Africa and the Southern African Faith Communities’ Environment Institute, said the government ignored due process in approving the plants and filed a lawsuit aimed at halting their construction. The energy ministry’s own research shows additional nuclear power probably won’t be needed until 2037.
The court ruling is a major blow for Zuma and his allies “because they will now realise that large infrastructure deals cannot be made behind closed doors and are subject to transparent and public participatory processes”, Somadoda Fikeni, a political science professor at the University of South Africa, said by phone from Pretoria.
The new plants were a key point of dispute between Zuma and former finance minister Pravin Gordhan, who questioned whether the country could afford them. Zuma fired Gordhan last month, prompting S&P Global Ratings and Fitch Ratings to downgrade the nation’s international credit rating to junk.
Even if the government does appeal, the high court ruling is likely to delay the nuclear programme by months, if not years. With Zuma due to step down as leader of the ANC in December and as president in 2019, the decision as to whether it goes ahead could be left to his successor.
“The court decision proves that correct procedures have not been followed and that it has been questionable from the start,” Melanie Verwoerd, an independent political analyst, said by phone. “Zuma was always very keen on the nuclear build programme and it is supposed to be his legacy project. The ruling certainly will not sit easily with him.”
Bongani Ngqulunga, Zuma’s spokesman, didn’t answer calls to his mobile phone or respond to text messages. Donald Liphoko, the acting chief government spokesman, said he couldn’t comment because the cabinet hadn’t been informed of the ruling.
Stop procurement
State power utility Eskom initiated the process to build the new nuclear plants when it requested information from vendors in December and set 28 April as the closing date for responses. The company is studying the judgment and will comment later if necessary, spokesman Khulu Phasiwe said on Twitter.
“Eskom will have to stop its procurement process right now,” Adrian Pole, attorney of record for Earthlife Africa Johannesburg, said in an interview.
The Democratic Alliance, the main opposition party, alleges that Zuma may have already signed a secret nuclear power supply deal with Russia and that the programme would be used to benefit his own financial interests and those of his allies. The president and the government have denied the allegations.
“The court’s findings have greatly narrowed government’s ability to legitimately procure additional nuclear capacity,” Gordon Mackay, the DA’s shadow minister for energy, said in an e-mailed statement. “It will ensure much needed transparency over nuclear procurement going forward.” — (c) 2017 Bloomberg LP