Latest news with #MuliloEnergy
IOL News
a day ago
- Business
- IOL News
Ex-Eskom executive Jan Oberholzer's battery tender win raises concerns of insider advantage
Former Eskom chief operating officer Jan Oberholzer Image: Armand Hough/ Independent Newspapers The Black Business Council (BBC) has sharply criticised the awarding of a multi-billion-rand battery storage contract to Mulilo Energy, a company chaired by former Eskom Chief Operating Officer Jan Oberholzer. Oberholzer served as Eskom's COO from 2018 until July 2023, a period marked by significant challenges for the utility, including aging infrastructure, financial difficulties, and worsening load-shedding. The battery storage program, launched in March 2024, aims to bolster the country's electricity grid by storing excess solar power generated during the day and releasing it during peak demand in the mornings and evenings. At a recent press briefing, Minister of Electricity and Energy Kgosientso Ramokgopa confirmed that Mulilo Energy, alongside Norwegian firm Scatec, has been selected as the preferred bidder for the project. However, the BBC has raised serious concerns about this decision. The organisation argues that Oberholzer and former Eskom CEO Andre de Ruyter presided over a period that 'nearly collapsed Eskom' and left South Africa facing persistent load-shedding". 'Given the circumstances, the BBC is deeply concerned that Oberholzer may have had insider knowledge of Eskom's requirements, which could have given his company an unfair advantage over other bidders. This raises serious questions about his credibility and ethics,' said BBC CEO Kganki Matabane. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Furthermore, the BBC highlighted a troubling perception of racial privilege. 'The organisation strongly believes that if Oberholzer were Black, this outcome would likely have sparked widespread allegations of corruption. 'The lack of criticism in this case underscores the ongoing issues of white privilege in South Africa's economic dealings,' he added. The National Union of Mineworkers (NUM) also expressed discontent, stating that the decision undermines the principles of good governance. 'We consider this a clear case of a revolving door—where an individual transitions from a position of immense public influence at a state-owned entity to a private company that benefits directly from policies and initiatives he once championed,' NUM argued. 'This practice undermines the foundations of good governance and contradicts the government's stated commitment to fighting corruption.' IOL attempted to reach out to Mulilo Energy for comment on the matter, but the company did respond by the time of publication. Earlier this week, Prince Adil Nchabeleng, a member of the MK Party and the Parliamentary Portfolio Committee on Electricity and Energy, said the party had written to the minister demanding full disclosure within seven days. 'We are questioning the validity of the selection process for this contract, including the reasoning and merits behind the award,' Nchabeleng said. 'Approximately 26 other companies bid for this project, yet there has been no transparency regarding the criteria or process used to select the current winner.' Since 2020, the Department of Mineral Resources and Energy has aimed to add 28 GW of new electricity generation capacity through its IPPPP (Integrated Power Producers Procurement Programme). Eight bid windows have been released to date, covering risk mitigation, renewable energy, battery storage, and gas-to-power projects. However, allegations of irregularities in Eskom's procurement processes have persisted. Last year, Karen Pillay, Eskom's then-head of security, was suspended amid accusations of corruption related to an R500-million security tender awarded to Fidelity Security Services. It was alleged that she bypassed proper procedures, relying instead on a security report drafted by former police chief George Fivaz at the request of then-CEO Andre de Ruyter to award the contract without a competitive tender. Further scrutiny came in June last year when Parliament's Standing Committee on Public Accounts (Scopa) questioned Eskom's Chief Procurement Officer Jainthree Sankar about the tender process. Sankar explained that she was not present at the initial meeting with de Ruyter and Oberholzer, where the extent of the threat to Eskom was discussed. She clarified that she did not participate in selecting the service provider, claiming she only received instructions from her superiors to proceed with the emergency contract. By the time of publication, the Department of Electricity had not responded to IOL's questions. IOL News
The Citizen
4 days ago
- Business
- The Citizen
MK party wants full disclosure over R9.5bn battery storage projects
Electricity Minister Kgosientso Ramokgopa praised Mulilo Energy as a "great South African success story". The MK party says it wants full disclosure of bid adjudication records after a multi-billion energy tender was awarded to a company headed by former Eskom CEO Andre de Ruyter's right-hand man, Jan Oberholzer. On Friday, Electricity Minister Kgosientso Ramokgopa announced the appointment of five preferred bidders under the Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP). De Ruyter's right-hand man Mulilo Energy, chaired by Oberholzer, the Chief Operating Officer of Eskom and Scatec, was awarded five large battery storage projects in the Free State to develop 616 MW / 2,464 MWh of new battery storage capacity for R9.5 billion. Oberholzer was appointed chairperson of Mulilo in September 2023, just two months after leaving Eskom as COO. Out of the five available projects, four were awarded to Mulilo Energy Mulio Energy was founded in 2008 by property developer Johnny Cullum and racing driver Chris Aberdein after a conversation about load shedding. Both remain on Mulilo's board. ALSO READ: Eskom denies reports of 14-hour load shedding next month MK party not happy Ramokgopa praised Mulilo at Friday's announcement as a 'great South African success story' that shows the country can stand tall globally. However, the MK party wants transparency in the bidding process MK party national spokesperson Nhlamulo Ndhlela said they have written to Ramokgopa demanding full disclosure of the bid adjudication records within seven days. 'The uMkhonto weSizwe party is blowing the lid off what appears to be one of the most blatant acts of javelin throwing in post-apartheid public procurement, this time under the green veil of 'renewable' energy. 'Should the Minister fail to comply, the MK party will immediately approach the courts to interdict and suspend these contracts,' Ndhlela said. 'Billions' Ndhlela said 'this is no longer about megawatts. 'This is about the billions being funnelled out of our country under the false flag of progress, and the MK Party will not stand by and watch our state-owned entities being handed over to corrupt white monopoly capital interests'. The Battery Energy Storage Programme is a critical initiative aimed at enhancing South Africa's power system by providing essential ancillary services and increasing grid capacity through energy storage. Projects Other awarded projects located in the Free State will include: Erfdeel BESS (123MW/ 492MWh) Retreat BESS (123MW/ 492MWh) Bloemhoek BESS (124MW/ 496MWh) Vanilla BESS (123MW/ 492MWh) The BESIPPPP Bid Window 3 was launched on 28 March 2024, with bids submitted on 28 November 2024. Ramokgopa said the evaluation process was conducted by an Independent Bid Evaluation Committee 'under strict security measures, took place at the IPP Office.' ALSO READ: Eskom winter outlook: Here's how many days of load shedding to expect in SA
