Latest news with #R9.5
The Citizen
3 hours 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
IOL News
3 days ago
- Business
- IOL News
How Mulilo and Scatec are transforming SA's power grid with a R9. 5 billion battery storage bid
nister of Electricity and Energy, Kgosientsho Ramokgopa, has announced Mulilo and Scatec as the preferred bidders Image: Jairus Mmutle/GCIS Minister of Electricity and Energy, Kgosientsho Ramokgopa, has announced Mulilo and Scatec as the preferred bidders for the country's third bid window of the battery energy storage program. The program aims to help increase the country's electricity grid capacity and improve energy security. Last month, IOL reported that Ramokgopa announced a plan to address the country's ongoing energy crisis through private sector involvement in transmission infrastructure development. He explained that the existing transmission network was unable to keep up with the country's growing renewable energy generation, particularly in areas such as the Northern and Western Cape. The battery storage program, initiated in March 2024, is designed to store excess electricity generated primarily from solar power during the day and release it during peak demand times in the morning and evening. In a press briefing on Friday, Ramokgopa confirmed that South African company Mulilo and Norwegian company Scatec have been chosen as the preferred bidders. 'For the site, the substation, that is Lienda, we have Scatec, who is a preferred developer. For Theseus, Everest, Harvard, and Merapi, we're happy to announce that Mulilo, which is a domestic outfit, has been identified as a preferred bidder.' 'I think what is significant about this round that we are announcing is that we are seeing that more and more South African companies are putting their hand up, and they are very competitive.' The program is expected to add 616 megawatts of battery storage capacity across five sites in the Free State province. Ramokgopa added that this investment will total R9.5 billion, including R3.7 billion in local content, supporting the country's economy by creating jobs and encouraging black ownership. The projects are expected to start commercial operations by January 2028. He further stressed the benefits for consumers and industries, adding that the country was making progress towards energy security. 'Once we bring down the cost of electricity, households won't face runaway tariff increases, and businesses will be more competitive. "This battery storage program is part of South Africa's broader plan to increase renewable energy while keeping coal as the backbone of the grid. We are making steady progress toward energy security and a greener future.' he said. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel.
The Citizen
20-05-2025
- Business
- The Citizen
SIU is not done with NLC yet, as more corruption allegations emerge
The SIU is on phase three of its investigations, scheduled to be completed by 31 December 2025. The Special Investigating Unit (SIU) says its work at the National Lotteries Commission (NLC) is not yet done. SIU head Andy Mothibi on Tuesday briefed the standing committee on public accounts on the investigation into the NLC. In November 2020, President Cyril Ramaphosa signed a proclamation authorising the SIU to investigate the NLC and recover any losses. ALSO READ: NLC rolls out lifestyle audits, anti-fraud initiatives 'to rebuild trust' The SIU divided its investigations into three phases. The estimated value of the matters investigated in the first and second phases is R279.7 million and R246.6 million, respectively. The SIU has completed investigations in these phases. Phase three, which is ongoing, has an estimated value of R905.9 million. It has an estimated date of completion of 31 December 2025. The value of contracts under investigation with potential civil litigation is about R2 billion. However, the SIU has recovered only R9.5 million of this. ALSO READ: NLC heist: SIU almost done with second phase of R1.4bn NLC corruption probe The Asset Forfeiture Unit (AFU) has issued preservation orders amounting to R78.2 million, while the Special Tribunal's preservation orders stand at R37.3 million. At least R6.3 million in pension has been frozen. SIU probe into NLC According to Mothibi, between 2020 and 2024, 22 individuals and entities were referred to the NPA for criminal prosecution related to fraud, corruption and money laundering. At least 15 persons have been identified as alleged key players in the NLC corruption, including the former board chair, Alfred Nevhutanda, who has approached the courts in an attempt to get the SIU off his back and former chief operations officer Phillemon Letwaba, who is challenging the constitutionality of the Special Tribunal's preservation order against him. ALSO READ: NLC spends over R8 million on suspended employees facing disciplinary action According to the SIU, the key players were allegedly able to access NLC funds due to inadequate project management, a lack of monitoring and evaluation, ineffective project auditing techniques, general maladministration in the approval of the grants and corrupt elements. Seven directors and 14 companies have been referred to the CIPC for being placed on the delinquency list and for being barred from registering companies with the CIPC in the future. But the SIU is not done with the NLC yet. Mothibi told parliament the unit has drafted a motivation for a proclamation after receiving several procurement allegations The motivation will be submitted to the Department of Justice and Constitutional Development for further processing. The SIU has also submitted the first Presidential progress report to the Presidency. NOW READ: Accounting firms compiled fraudulent financial statements for NPOs – SIU on NLC corruption
