Question NW946 to the Minister of Finance
25 May 2017 - NW946
Carter, Ms D to ask the Minister of Finance
(1)Whether the Government has concluded an agreement for the development of nuclear plants with representatives of (a) the Russian government and (b) any Russian company subsequent to the removal of Mr Pravin Gordhan as the Minister of Finance; if so, in each case, (i) on what date was the agreement concluded and (ii) by whom; (2) have any agreements been concluded regarding the (a) project management and/or (b) construction of the specified nuclear power plants; if so, in each case, (i) with whom and (ii) at what cost?
Reply:
1. The Minister of Finance does not have the authority to conclude country agreements for the nuclear new build programme on behalf of government. In addition, the Minister does not have the mandate to determine policy or implementation frameworks for the energy sector. The Minister of Finance’s role in this regard will relate to Sections 66 and 70 of the Public Finance Management Act, which requires concurrence for any guarantee, indemnity or security that binds the National Revenue Fund to future financial commitments. In addition, the Preferential Procurement Policy Framework Act allows the Minister of Finance to make exemptions from provisions in the interests of national security, if the likely tenderers are international suppliers, or if it is in the public interest.
2. If any agreements have been concluded regarding project management and the construction of specified nuclear power plants, it would be between the relevant accounting authority and the service provider. Such agreements do not necessarily require the approval of the Minister of Finance.