Moosa negotiated with Hitachi for the supply of boilers to Eskom’s new power stations at Medupi and Kusile, which made the ANC a large profit

27 January 2021 – 16:15 https://spkt.io/e/1497651

The fulsome praise with which Valli Moosa has greeted the coming into operation of the Political Party Funding Act should fool nobody.

It was Moosa’s unenviable task to be involved in fundraising for the ANC at the same time as he chaired Eskom’s board and its procurement committee. With great disregard for accountability and responsiveness to the needs of ordinary people, Moosa negotiated with Hitachi for the supply of boilers to new power stations at Medupi and Kusile. The net result of his efforts was that Hitachi Power Africa was formed, 25% owned by the ANC’s fundraising/investment arm, Chancellor House.

A great deal of taxpayers’ money was wasted on accommodating Chancellor House in the Eskom procurement deal as Hitachi’s black economic empowerment (BEE) partner. Moosa had no qualms about the conflict of interest involved, nor about the inflated prices negotiated to leave fat in the deal for the ANC. He allowed Hitachi’s prosecution in the US for doing the deal at all to pass unremarked.

Hitachi paid a stiff fine for its illegal activity in the deal, but because, unlike Hitachi, the ANC does not do business in the US, the ANC sailed on with complete impunity — untouched by the Foreign Corrupt Practices Act the US authorities used to prosecute Hitachi.

When Matthews Phosa became ANC treasurer-general he balked at the deal, but Gwede Mantashe was unrepentant and called it the exercise of the ANC’s “freedom of association”, without ever dealing with the impropriety of a political party in power contracting with a state-owned enterprise.

Eventually, on Zweli Mkhize’s watch as treasurer-general, the ANC got out of the deal on a basis that made it a great deal of profit, which has been frittered away by Luthuli House. An accounting from the ANC and Moosa for what went on is long overdue.

Paul Hoffman
Accountability Now