Opposition unite against ANC Inc

Oppostion parties have called for the ANC to sell its shares in a company that has been awarded huge Eskom contracts.

ANC secretary-general Gwede Mantashe has defended the ruling party's refusal to give up its shares in Hitachi, which stands to benefit hugely from the power utility's contracts.

The DA yesterday called for the ANC to disinvest its stake in a company contracted to build two power stations for Eskom because "it is a clear conflation between party and state, with the ANC standing to benefit from a deal worth nearly R6-billion at the public's expense".

DA MP Sejamothopo Motau said: "Mantashe's claim that there's nothing wrong with the ANC's interest in the company shows his disregard for the interests of a democratic society, and for the constitutional principles of accountability and transparency."

According to their website, Hitachi Power Europe and Hitachi Power Africa have been awarded an Eskom contract to supply and install boilers for power stations.

A Hitachi spokesman confirmed to The Times that the ANC owns a 25% stake in Hitachi Power Africa. He refused say how much Hitachi's contract with Eskom is worth.

A 2008 Business Report article estimated that the ANC's stake in the deal, through its Chancellor House financial arm, was worth about R5.8-billion.

ANC treasurer Mathews Phosa promised to take steps to disinvest the party last year.

Lance Greyling, the Independent Democrats spokesman for energy, said this week that much of Eskom's proposed 35%-a-year tariff increase for three years would be used to fund the construction of the coal-fired Medupi and Kusile power stations, in Limpopo and Mpumalanga.