Threat of legal action over Eskom deal
THE DA is threatening legal action in its push for the release of the terms and conditions of the loan agreement entered into between the national power utility Eskom and the China Development Bank.
This comes after its Promotion of Access to Information application request made on September 10 did not yield the required documents.
“I have therefore submitted a notice of internal appeal to Eskom in terms of Section 75 of PAIA (the Promotion of Access to Information Act) for not granting my request for access to the terms and conditions of the loan.
“If Eskom fails to honour the further 10-day deadline set by this notice of appeal, the DA will not hesitate to take the necessary legal action and Africa and Africa, and we look forward to enhancing this relationship,” Frolick said.
The diverse array of Shenzhen investors are looking to boost South Africa’s manufacturing capacity in approach the courts for relief,” DA leader Mmusi Maimane said.
He has claimed that he previously approached President Cyril Ramaphosa, Eskom board chairperson Jabu Mabuza and China Development Bank liaison in South Africa, Jiangtao Cao, but none played open cards and disclosed the terms and conditions of the R33billion loan.
“South Africans need to be assured that this loan does not tie our country and taxpayers to unaffordable and unfair terms and conditions. We will not allow China’s model of ‘debt trap diplomacy’ to take root in South Africa.”
Responding in the National Council of Provinces last month, Ramaphosa said it was not unusual for state-owned entities to raise funding in the market for things like capital investment or operating costs. order to enable South Africa’s special economic zones to supply the African continent with manufactured goods.
In this way, South Africa is seen as a gateway to the rest of the African continent.
“They do so in accordance with standard commercial arrangements,” he said.
Ramaphosa said the loan had a grace period of five years and was repayable in 20 instalments over 10 years.
“There are no specific conditions for this loan. Eskom has indicated it will not be able to make the loan agreement public since it contains information that may put it at a disadvantage when negotiating in the market.”
He insisted that the loan was government guaranteed, and no Eskom assets had been used as security for the loan.
Maimane said Ramaphosa had committed his administration to greater transparency and accountability, but had chosen to follow the path of secrecy that had been entrenched under former president Jacob Zuma.