Hansard: NA: Unrevised hansard- Vote 26

House: National Assembly

Date of Meeting: 11 May 2016

Summary

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Minutes

UNREVISED HANSARD
WEDNESDAY, 11 MAY 2016
PROCEEDINGS OF THE EXTENDED PUBLIC COMMITTEE – NATIONAL ASSEMBLY CHAMBER

 

Members of the Extended Public Committee met in the National Assembly Chamber at 14:03.

 

House Chairperson Mr C T Frolick took the Chair and requested members to observe a moment of silence for prayer or meditation.

 

APPROPRIATION BILL

Debate on Vote No 26 – Energy:

 

THE MINISTER OF ENERGY: Hon Chairperson, hon Ministers, Deputy Minister on Energy, Deputy Ministers, Chairperson of the Portfolio Committee on Energy and members of the Portfolio Committee on Energy, members of the National Assembly, Sibingelela uMama wesizwe uMaKhumalo [we greet the mother of the nation, Ms Khumalo], director-general Amano from the International Atomic Energy Agency, IAEA, William Pescod Secondary School learners and their teachers from Kimberly, Kufakwezwe Secondary School, Bushbuckridge, the energy sector has enormous potential to contribute to the growth stimulus that our country desperately needs. However, a lot more needs to be done. Economic growth through reindustrialisation, skills development and the creation of employment opportunities for our communities can all be enabled by the energy sector. However, a lot more needs to be done.

 

This year, we will continue to focus on our chosen path towards a diversified energy mix, especially as it relates to renewable energy, regional energy integration, gas development and the Independent Power Producers programme. We believe that these initiatives will support our economic growth strategy outlined in the 9-point plan, the 2014 and 2016 ANC elections manifestos and the National Development Plan.

 

In September 2015, the new post-2015 sustainable development agenda was adopted by 193 United Nations member countries. In addition, the Paris Agreement reached at the Cop 21 Climate Change Conference in December 2015 signifies a second critical milestone, where the world agreed to chart a pathway to a low- carbon energy system to mitigate against the impacts of climate change.

The Integrated Energy Plan, IEP, represents our overarching energy policy and strategy statement that has been under development since 2012, when Cabinet approved the commencement of the public consultation process.

 

I would like to thank the Ministerial Advisory Council, chaired by Dr Zav Rustomjee, for their detailed and comprehensive comments on this document. We will ensure that their comments are given serious consideration. A final version will then be tabled for further consultation, consideration and public comment. The IEP will provide answers to various questions and it is a document that you need to take seriously. Our country has been grappling regarding our energy future, including the development of our Energy Master Plan. All political parties, academics, all stakeholders need to participate in the Energy Master Plan.

 

Arising out of the process for developing the IEP will be the infrastructure plans in respect of the electricity, gas and liquid fuels sectors in more detail, as recommended by the IEP. The updated Integrated Resource Plan process is well underway, and will be submitted to the economic sector and infrastructure development cluster in the second quarter of this financial year. I have no intention to rush this process. I believe that this should be an inclusive process.

 

Similarly, the Gas Infrastructure Plan will take its lead from the IEP, in regard to the gas pipelines, storage and other infrastructure that is necessary for meeting the energy demand through gas supply.

 

Going forward, it is becoming more and more apparent that future energy demand will be a mix of electricity, gas and liquid fuels. Depending on the relative cost competitiveness of each of these, an equilibrium between the three will be established.

 

As part of the Youth Month commemoration this year, we will celebrate the great strides made by the Renewable Energy Independent Power Producers Programme towards the development and empowerment of the youth. Not only have numerous employment opportunities been created, with 52% of total job opportunities specifically for youth, but they have also benefitted from various education and skills development initiatives, preparing them for, hopefully, a bright and successful future.

Our Renewable Energy Independent Power Producer Procurement Programme has become one of the world‘s most progressive and successful alternative energy programmes, a fact that is recognised globally.

As at December 2015, the department had procured 6 377 megawatts of renewable energy and has already connected 44 projects with a capacity of 2 021 megawatts to the national grid, with many more under construction. The energy contribution of independent power producers, IPPs, is expected to grow to approximately 7 000 megawatts with the first 47 renewable energy IPPs fully operational by mid-2016. We would like to thank the Minister of Environmental Affairs for the leadership in this as well. [Applause.] Private investment in the programme currently exceeds R194 billion.

Bids in terms of the Bid Window 4 Expedited Round, totaling an additional 1 800 megawatts are currently under evaluation, and we will announce preferred bidders in the second quarter of the financial year. Bid Window 4, including the investments made though the small projects programme, will increase the investment amount to more than R255 billion.

We remain on track to meet our national commitment to transition to a low carbon economy with the target of 17 800 megawatts of renewable energy power by 2030.

The current renewable energy operational portfolio is contributing an increasing percentage of the buffer between the available supply and projected demand for electricity. Already a 16% contribution is made to the total energy produced during the morning and evening system peak periods in a 24-hour period.

 

The department has procured private peaker stations to the capacity of nearly 1 000 megawatts that can be used when there is a larger demand than what the Eskom generators can produce. The Avon plant, which is a private development in the Eastern Cape was completed in September 2015 and can produce

330 megawatts. The Dedisa plant in KwaZulu-Natal, when completed by the end of this year, will produce 630 megawatts. Total projects costs were R8 billion, while 210 permanent jobs and 6 190 temporary jobs were created.

 

Last year, we initiated a process of redesigning the requests for proposal, RFP, for Bid Window 5 with attention to early, efficient and equitable benefits to communities and greater localised industrialisation. We are pleased to indicate that a new RFP for Bid Window 5 will be released during the second quarter of this financial year and this will fast-track investment in the sector.

To further boost renewable energy development in South Africa, we have determined, with the concurrence of the National Energy Regulator of South Africa, Nersa, that 1 500 megawatts will be generated from new solar technologies in a Northern Cape Solar Park. We hope that this will stimulate investment in the area, expanding industrial manufacturing facilities.

We have now made provision for the Department of Energy IPP office to lead the processes with regard to the structuring and procurement of the intended additional solar park capacity. We have directed further that the IPP office should in its structuring of the proposed projects or programmes ensure the involvement of one or more state-owned companies as well as local communities.

 

I am happy to say that the Call for Expressions of Interest from potential strategic equity partners for the Northern Cape Solar Park has been announced and published today. We urge the participation of qualifying private-sector and public-sector stakeholders.

The department is expected to announce the preferred bidders from the first bid submission for domestic coal projects in July 2016. Bids with a combined capacity of 900 megawatts were received and are currently in evaluation. The projected investment commitment will be in the region of R45 billion, and will be rolled out over the next four years.

 

An additional 3 750 megawatts of power will be generated utilising coal technology. The rationale behind the cross-border programme is that it facilitates the construction of the transmission lines interconnectors between South Africa and our neighbours. This will help us for the transmission lines for Grand Inga.

 

As you are aware, the South African Cabinet approved the national Biofuels Industrial Strategy in December 2007. An updated version of this will be published soon. The diesel and petrol blending of biofuels was promulgated in August 2012 and came into effect in October last year. The Biofuels Regulatory Framework will be submitted to Cabinet.

 

The Department of Agriculture, Forestry and Fisheries played a key role in designing the biofuels feedstock protocol. I thank Minister Zokwana and his Deputy Minister for this.

 

The nuclear energy expansion programme is a central feature of our future energy mix, given the need to provide base-load

electricity and also to meet the significant greenhouse gas emissions reduction target we have set for our country. We must reiterate that our vision around this programme is centred on processes that will create a nuclear industry, with the objective of catapulting South Africa into the top echelons of the knowledge economy. We are confident that our nuclear programme would respond to job creation, by creating employment and fighting poverty. It will also provide assurance to the investors for security of supply for industrial purposes.

 

 

The NDP implored government to undertake detailed investigations prior to making a final decision on whether to deploy the nuclear new build programme. These detailed technical investigations culminated in various studies and strategies.

These were considered by Cabinet, which has decided to allow for a request for proposal to confirm the market appetite.

 

 

The RFP phase would ensure that our country secures binding commercial and financial information to fully appraise the Cabinet to be able to take a final decision. This would inform the price, affordability, pace and scale of this programme. And, we will only implement what our country can afford.

We will ensure that the process is above board and free of any potential for corruption. We will not rush the process and will meet all the necessary national and international requirements for the new build process, led by the guidance, in the main, of the International Atomic Energy Agency.

 

During the second quarter of the 2015-16 financial year, the department solicited market information to help in the design of the gas—to-power programme and in development of documentation required to procure gas-fired power.

 

 

The exploitation of our indigenous gas, coal bed methane and shale gas, as well as the regional natural gas resources must be seen in the broader context of regional integration. The trade- off between South Africa and our neighbours in a synergistic manner will improve our ability to secure those clean energy resources.

 

 

I have directed my department to undertake more upfront development work for the procurement of imported gas to ensure bankability of the gas—to-power programme for investors.

 

We will make a preliminary information memorandum on the 3 125 megawatts gas-to—power programme. We will also, through the IPP

office, tomorrow, release a further Call for Expressions of Interest from the private sector to partner with our state-owned entities with the development of 60O megawatts additional gas.

 

Since the treaty for the development of the Grand Inga Hydropower project entered into force in March 2014, the Democratic Republic of Congo, DRC, commenced the process of selecting a concessionaire. We will assist them with this.

 

 

The much-awaited solar water heater programme has finally taken off, with contracts placed for the supply of baseline systems under the social programme. Approximately 9 000 systems have been procured and secured through this programme. They had many problems. I do understand. It has been delayed, but we are there to address defective installations, of which some need to be replaced and some repaired. However, in general, most of them have to be replaced. For now 9 000 systems have broken the rod of poverty.

 

 

Die rotang is geknak. [The cane is broken.]

 

 

 

Silufezile ugqatso. [We have run the race.]

The Integrated Electrification Programme, INEP, and its implementing agencies, Eskom, municipalities and nongrid service providers have made remarkable progress in increasing access to electricity in South Africa and connected over 6,7 million households between 1994 and March 2016. We are very happy that the Western Cape government has embraced the electrification of farms for farm workers.

 

 

An amount of R5,6 billion has been appropriated in the 2015-16 financial year for the electrification programme. That amount will go a long way to address universal access to electricity for your constituencies.

 

The nongrid programme achieved more than 123 379 installations, mainly in the Eastern Cape, KwaZulu-Natal, Northern Cape and Limpopo. Nongrid systems such as solar cells need to be fast- tracked so that we can have universal access to electricity. We are confident that we will meet these criteria.

 

 

The INEP programme will be appropriated with R5,5 billion in the 2016-17 financial year and we are convinced that an estimated amount of R17,6 billion will be appropriated. The money must be spent. We cannot underspend on this important priority.

We will conduct unannounced visits to service stations across the country to collect petrol and diesel samples for analysis under the Petroleum Products Regulation Act. Noncompliant operators will be issued with relevant enforcement notices and those repeat offenders risk losing their licenses.

 

The year, 2016, marks the 10th anniversary of the enactment of the licensing of persons involved in the manufacturing or sale of petroleum products or the different petroleum entities from the entire value chain, especially for historically disadvantaged South Africans. However, this is still not enough.

 

 

We continue to monitor compliance to the Liquid Fuels Charter commitment, which requires that historically disadvantaged South Africans own, in total, 25% of the aggregate value of the equity of the entity that holds the operating assets in the South African oil industry.

 

 

We can report to South Africans that Sasol Oil joined Total South Africa in fulfillment and compliance to the ownership element. Effective from 1 July 2006, Sasol Oil sold 25% of its shares to Tshwarisano LFB Investment (Pty) Ltd, a broad-based black economic empowerment consortium. The value of this transaction amounted to nearly R1,5 billion, making it a

significant BEE transaction in the liquid fuels industry. The demographics of this empowerment group include 54% women ownership, substantial rural representation, 3% youth and 2% disabled.

 

 

In respect of liquefied petroleum gas, LPG, Mozambique became the number one source of imports, again helping to bolster regional integration in the energy trade. However, to better develop the LPG industry in our country, there are still bottleneck issues that need to be taken care of.

 

 

We have always indicated that refineries in the country can no longer meet the national demand for petroleum products. In the 2015, we saw a steep increase in the amounts of diesel and petrol imported into the country. In line with the national NDP, government, in the next 12 months, will make recommendations and firm proposals regarding refining capacity in South Africa. The government of Iran has shown an appetite for partnering us, in this regard. We would need to consider a public-private partnership model, given the need to manage the demand on our public resources.

Turning to the nuts and bolts of this year‘s budget, the total appropriation to the department is R7,5 billion, of which almost 90,2% is earmarked for transfers to the INEP programme

 

The spending focus over the medium term will remain on transfer payments to Eskom and municipalities. The implementation of the National Solar Water Heater programme will be R1,2 billion over the medium term on more than 130 000 solar water heaters.

 

 

Transfers to municipalities are expected to increase from

 

R1,9 billion to R2,2 billion in 2018-19, and transfers to Eskom from R3,5 billion to R4 billion in 2018-19.

 

Nongrid electrification projects, mainly solar energy, will be extended countrywide. Funding of R10,9 million was also allocated over the medium term within the Integrated National Electrification Programme.

 

 

Funding for state-owned entities such as the South African Nuclear Energy Corporation, Necsa; National Nuclear Regulator and the South African National Energy Development Institute were maintained at existing funding levels. The Auditor-General must be addressed and the problems between Necsa and the Auditor- General must be resolved. I have requested the Chairperson of

Necsa to ensure that all the points raised by the Auditor- General are addressed.

 

 

The new nuclear build programme is part of the security of electricity supply. Additional funding of R200 million in the Nuclear Energy programme is made available in 2016-17.

 

In line with the Presidential Review Commission on State-Owned Entities, we have been working towards the review of the composition of the Central Energy Fund Group of Companies. Our work in this area includes the strengthening of the entities in the oil and gas sector and the stated policy objective of the creation of a stand-alone national oil company, using PetroSA as a nucleus. In this regard, we will work with the Minister of Mineral Resources in ensuring that the Mineral and Petroleum Resources Development Act, MPRDA, amendments to the Bill are completed as soon as possible to create policy certainty. This is one of our imperatives. Working with the boards of the affected state-owned companies, we will finalise this work through the review of the entities by October 2016, and will revert back to Parliament on our views and strategies for a revised energy sector SOC framework.

Furthermore, the department together with our state-owned entities has been focusing on leveraging the current low oil price environment towards ensuring that our country benefits optimally. In this regard, we will secure even lower prices when it comes to procurement of oil.

 

Accordingly, in 2015, we issued a ministerial directive for the rotation of strategic stocks by the Strategic Fuel Fund, and this has resulted in the increased revenue base for the Strategic Fuel Fund, whilst at the same time, maintaining strategic stocks within our storage tanks for security of supply. This is in place through long-term lease and contractual agreements with the buyers. The estimated revenue to accrue from this process is around R170 million per annum, significantly boosting the balance sheet of the Strategic Fuel Fund and the Central Energy Fund.

 

 

Through the rotation of strategic stocks and trading initiatives, the Strategic Fuel Fund has further consolidated its ability to be self-sustainable. This has also allowed us to replace the unsuitable stock that we have been storing in our tanks, which has been both uneconomical and did not contribute to security of supply. The Strategic Fuel Fund will continue to ensure that it is able to respond to any shock in the market,

whilst optimally making use of the opportunities presented in an evolving oil sector.

 

 

In addition, the Republic of Mozambique Pipeline Company, Rompco, pipeline from Mozambique in which iGAS has a 25% stake is continuing to earn considerable income for iGAS. In this regard, we also need to explore and we are exploring further developments with the Mozambican government.

 

The department has submitted a programme to the leader of government business regarding the following legislation for consideration by Parliament and which will either be introduced or concluded in the financial year.

 

 

Firstly, the amendment of the National Energy Regulation Act: A new proposed structure will create a two-tier energy regulatory structure, to enable the appeal of regulatory decisions through a body that is not conflicted by having participated in making the regulatory decision in the first place. The review board will create such a body.

 

 

Secondly, the Gas Amendment Bill: The Bill will largely introduce a mechanism that allows the Minister of Energy to direct the development of new gas infrastructure, including

pipelines, storage and regasification technology for imported liquefied nation gas, LNG. The Bill will encompass the midstream elements of the gas value chain, whereas the upstream will be covered under amendments to the Mineral and Petroleum Development Act. The plan involves, separating those elements that relate to the petroleum value chain from the mineral regulatory framework, with consultation with communities, political parties and particularly, with guidance from the Minister of Mineral Resources.

 

 

Thirdly, the Petroleum Agency of South Africa Establishment Bill seeks to establish the upstream gas regulator, separately from its incumbent, the Central Energy Fund SOC location. This will conclude the regulatory and institutional arrangements that are necessary to facilitate the concessioning, licensing and exploitation of the shale gas resource that offers so much potential for our country.

 

 

Fourthly, the Petroleum Products Amendment Bill seeks to improve the enforcement elements in the licensing framework for wholesalers and retailers in the liquid fuels sector. Over the past few years, shortcomings have been identified in relation to the extent to which the law does not adequately punish

malevolent behavior by licensees, given the weak penalty regime that is applicable under the Act.

 

 

The IPP Office Establishment Bill: The IPP Office Establishment Bill will formally create the Independent Power Producer Office and define its role and mandate in regard to private-public sector programmes in the power sector.

 

 

Learners, young people, the youth, what does this mean to you? This means that we have the intention of creating a green energy sector to safeguard your future.

 

The President implored us to work together to solve our current energy problems. If we are individually inward-looking, we will not succeed. It cannot just be a case of doing what is good for me. We must put aside individual preferences and gripes and pull together to achieve the collective goals that will ensure that we get our country firing on all cylinders again.

 

 

In conclusion, I would like to thank the Deputy Minister, the chairperson and members of the portfolio committee, which have engaged us in detail and have ensured that their eyes are focused on our mandate and that we are accountable at all times. The director-general, the Ministry officials, the green

Department of Energy officials and all our state-owned entities, I wish to thank you for ensuring that you are on the ball.

 

 

Where there are problems, please indicate them to us. We have listened to you and we will continue listening to you. We will not move at a pace that disregards the opinions of the hon members. We will rather take a step back and reconsider your advice. We are not prepared to steamroll decisions. [Interjections.]

 

 

To my family, I have the greatest regard for the opinions of my two sons and the two sons I dearly value have been extremely critical of our views. I thank them for their critical input and analysis of what we do.

 

I thank the chairperson of the portfolio committee for his guidance and direction which I have considered tremendously. Thank you.

 

 

Mr F Z MAJOLA: Hon Chairperson, Minister and Deputy Minister of Energy, ministers and deputy ministers present, hon members, ladies and gentlemen, comrades and friends. The ANC fully supports this Budget Vote of the Department of Energy.

This 2016-17 Budget of the Department of Energy, DOE, must be located within the broader spending plans of the medium expenditure framework as presented by the Minister of Finance in February. It is reflective of the subdued economic context and tighter revenue base, a context in which globally has seen the International Monetary Fund revising its projections downwards to 3,4% for 2016.

 

 

In a nutshell, we are engaged in this debate in the midst of unfolding structural tendencies and changes in the global economy, in which energy and other commodities are a central part. It bears reiterating and indeed we cannot overstate the importance of the government's response in terms of the overarching Nine-Point Plan, which amongst others sets out critical tasks and measures to tackle the binding constraints of energy supply to put the economy back on a faster growth trajectory and to ignite light at the end of the tunnel for millions of our people.

 

 

The Department of Energy has been allocated a Budget of R7,54 billion, which is less than a per cent higher than the R7,4 billion allocated to the department last year. As is the case with previous years, the Integrated National Electrification Programme was allocated the largest share of

R5,64 billion. As the ANC, we welcome the fact that the department successfully spent 99,1% of the R4,5 billion allocated to this programme in 2015. This is a very critical programme comprising grid and non-grid electrification of millions of households, especially the far flung rural communities.

 

 

Energy is a basic need of the people of this country; we need energy to prepare food, to keep warm, to heat water, to purify the water we drink, to provide lighting for our children, so that our children can study at night. Indeed, we need it for transportation, for industry and commerce so our people can access jobs, and to grow our economy.

 

 

The mandate of our fifth democratic Parliament remains one of catalysing and overseeing an uninterrupted radical socioeconomic transformation. This builds on the back of the steady and yet extraordinary real gains of socioeconomic and political transformation that have taken place in our country since 1994. A continuous good story narrated by concrete facts on the ground and on record, amongst which is the fact that when our fifth democratic Parliament began about 5,8 million poor households had been electrified in less than 20 years. As the ANC, we are proud to say that as at March 2016, this has been expanded to

over 6,7 million households, which now amounts to 88% of all households. This already makes the South African reality almost unrecognisable given the fact that in 1994, a mere 36% of households were electrified, which was of course largely white and urban households.

 

We can be confident that with the allocation of R17,6 billion over the medium-term period for grid connection, the department is on course towards achieving the mandate of 1,4 million households by March 2019, 75% of which are in rural areas.

 

 

When I took the podium last year on this occasion, the House was suffocated with a sweeping air of cynicism coming from the other side and swirling in the corporate media in the midst of the spates of load shedding that were unfolding. At that time we communicated the decisive outcomes of the ANC's January Lekgotla of that year, which directed that urgent measures must be taken to address issues pertaining to the generation capacity, a constrained network capacity and a distribution infrastructure that is interrupted by the imperative of maintenance and refurbishment.

 

 

With its War Room led by the Deputy President, Ramaphosa, as the ANC we welcome the concrete and remarkable progress that has

been registered to date. Yes, it is true there has been no load shedding since August last year.

 

 

As well as the protracted global economic crisis, ours is a generation that is also facing ecological crisis of a planetary proportion. Hence, we must welcome the momentum added to global climate action to cut carbon emissions and contain global warming by the historic agreement reached in December last year in Paris. This came on the back of the United Nation's Sustainable Development Summit held in September 2015, which for the first time in history adopted a global sustainable development goal for energy aiming for access to affordable, reliable, sustainable and modern energy for all.

 

 

In this context, as the ANC we welcome the deepening national commitment to transition to a low carbon economy, as underscored by the Integrated Resource Plan in terms of which 17800 MW are expected to be generated from renewable energy sources by 2030.

 

 

This firmly places us as a country amongst some of the leading countries of the global-south that have taken on the challenge of shifting towards renewable energy sources. Since August 2011 the Renewable Energy Independent Power Producers Programme has maintained its place amongst the top 10 renewable energy

programmes globally which makes SA a leader in the renewable energy sector.

 

 

We welcome the progress registered in terms of the department‘s Renewable Energy Independent Power Producers Programme, REIPPP, contributing substantially to the generation capacity of SA. By the end of the last financial year, 37 projects were able to add more than 1800 MW to the national grid. There has also been substantial tariff decreases for wind by 55% and solar photovoltaic by 62%.

 

With regards to the 9,600 MW nuclear new build, the department was able to complete the vendor parades, and concluded five inter-governmental agreements. The DoE is currently embarking on nuclear skills development and training programme that aims to grow the necessary local skills required for the nuclear build programme. We welcome the directive by the President that we will only procure nuclear on a scale and pace that our country can afford.

 

 

The Middle East remains our important source of crude oil, but as the ANC we welcome the fact that more than half of our country‘s crude oil requirements have been met by African countries. With regard to the refined petroleum products, the

capacity of our domestic refinery industry is falling short of demand even in the midst of a subdued economic climate, as illustrated by the fact that in 2014 South Africa refined approximately 27 billion litres of liquid fuels and consumed

29 billion litres, with the shortfall being imported.

 

 

 

The ANC‘s 2015 National General Council, NGC, appreciated that the setting up of refining capacity in the Coega Special Economic Zone, SEZ, is an important development for the liquid fuels sector growth and for development. This will boost industrialisation, job creation and attract significant foreign direct investment. It is therefore necessary to reiterate some of the key conclusions of the NGC of the ANC.

 

 

Operation Phakisa recommendations to advance offshore oil and gas exploration be implemented expeditiously.

 

 

The exploration onshore for shale gas should be accelerated in such a way to ensure that no damage is done to South Africa's water and other environmental resources. The effective integration of the South African economy with its oil and gas resources available in the Southern African region.

That we expedite the drafting of policy of Oil & Gas industry, separate from the mature mineral policy, and incorporating the free-carry principle for the state. And those South African companies, including state-owned companies, should have a clear role in the gas industry. We welcome the fact that the committee, will soon rece1ve a presentation on the Integrated Energy Planning, IEP, South Africa‘s own energy master plan.

 

 

With regard to the liquid fuels, despite the price volatility in the market, the demand and supply equation has been managed with commendable competency by the Department of Energy. None of us can claim that we have found fuel stations depleted of petrol or diesel with long queues being the order of the day. Yes this is a good South African story.

 

Following the release of the Integrated Energy Plan and the updated Integrated Resource Plan, we should see the tabling of the Gas Utilization Master Plan. Similarly, a concern must be expressed with regard to the status of the solar water heater programme, which at one point was a flagship programme of the DoE, second only to the Integrated National Electrification Programme. About 400 000 Solar Water Heaters have been delivered to South Africans, however there have been challenges that have led to the department taking direct control of the this

programme. Now, a concerted attention and focus are now clearly required to reposition this programme.

 

 

With regard to the state-owned enterprises, SOEs, in the last financial year there have been various challenges noted, including poor corporate governance, irregular expenditure, lack of alignment to the objectives of the department, all of which effectively resulted in poor utilization of resources. We once more urge the department to move with speed to reposition entities to ensure that they can fully deliver on their mandates. The Portfolio Committee on Energy, PCE, appreciates the achievements of the DOE in its few short years in existence.

 

For those of us, especially the masses of our people, whose lives and circumstances have been intertwined with the history of this country, and therefore who in their living memory actually know what it means to live in the dark days of apartheid, also knows that our country has the practical capacity to secure an even brighter future. Yes there can be no doubt that SA is a far better place today than it was 22 years ago. And yes we know that tomorrow will be better than today.

 

 

Siyaqhuba. Siyasebenza. [We deliver. We are working.]

Together we move South Africa forward! The ANC supports the budget. I thank you very much.

 

 

Mr G MACKAY: Chairperson, it is a measure of the insanity that prevails in our country at present that President Zuma‘s proposed nuclear deal has fallen from the front pages of our nation‘s newspapers. The latest cost of Mr Zuma‘s nuke deal now stands at a whopping R1, 6 trillion. Thanks to Nenegate and the continuously depreciating rand. To put this into perspective, that is equal to the government‘s entire 2015 budget and is a third South Africa‘s total Gross Domestic Product, GDP.

 

 

Alongside ballooning public sector wages and a noble but unaffordable proposed national health system, Mr Zuma‘s nuclear deal stands as the single biggest risk factor, undermining investor confidence in South Africa. It is therefore a fortuitous time to review the Minister‘s adherence to her constitutional and statutory obligations to nation, as they pertain to the nuclear new build programme. At the heart of our multiracial constitutional democracy, lies the world‘s greatest Constitution; section 217(1) of which is pertinent to the Minister and it reads as follows:

When an organ of state contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.

 

It is generally accepted that to procure goods or services in a manner compliant with the aforementioned constitutional principle, that such procurement must be done by way of an open and competitive public tender process. Actions speak louder than words! Despite continued and rather limp lip service to an open and transparent procurement process, it is the Minister‘s actions that are speaking volumes.

 

 

Open and transparent, the Minister repeatedly says, but then tables the various nuclear Intergovernmental Framework Agreements, IGAs, under the very limiting section 231(3) of the Constitution, effectively binding the republic to the provisions of the IGAs without requiring Parliament‘s approval or consideration.

 

 

Competitive and public the Minister says, and yet the Department of Energy in a briefing to the cabinet subcommittee on energy security recommends a closed government to government procurement process which would effectively bypass the

requirements for competitive bidding and further insulate any potential deal from the public scrutiny.

 

 

As regards the Minister‘s statutory obligations, the Electricity Regulation Act is unambiguous when it states that the decision to procure nuclear, and the nuclear procurement system must be taken prior to the commencement of nuclear procurement. Prior, meaning before or existing or coming in before in time, order or importance. I refer to this definition for the meaning of the word prior seems to have eluded the Minister, her department and even the brains trust that is our Cabinet.

 

 

It is a matter of public record that the nuclear process has commenced. In fact, the Minister has issued a ministerial determination to this effect. What has not commenced, what has not been determined and what has not been discussed is the nuclear procurement system. This is a glaring failure and contravention of the Act. How exactly the Minister hopes to get herself out of this pickle, currently being examined by the High Court is unknown. Perhaps the Minister will heed some free advice:

 

Minister, don‘t issue the request for proposal on nuclear, halt the nuclear procurement process and await judgment of the Cape

high Court, and no doubt the various other courts that will become involved as the constitutionality and legality of this arms deal – oops! I mean nuclear deal – as it will be tested continuously in our courts. Ignore this advice, Minister, at your peril for the volume of litigation to follow will be of such intensity that you will no doubt replace your boss as the so-called Accused Number One.

 

 

Before accusations are laid at my door of waging lawfare against the Minister, let us consider the economic and social implications of nuclear deal for our people. As the jobs party, the DA has from the onset been concerned by the potential negative effect of the nuclear new build programme on jobs and the economic growth.

 

The studies now show that all households in South Africa will be affected by the nuclear, with rich and poor carrying the burden of Mr Zuma‘s nuclear deal, alike. Our people will be directly affected via tariff increases and the escalating price of electricity, or indirectly through job losses and changing wage rates. The Gross Domestic Product, GDP, will be negatively affected as investment across sectors, becomes crowded out by the large scale investment required by the nuclear new build programme.

This will lead to a contraction in the economy, especially in those sectors which are employment intensive and employ the bulk of so-called unskilled labour. Nuclear becomes an even greater gamble at low growth rates, and where nuclear is in competitively priced relative to other energy option such as renewable, gas and hydro. Both these conditions are now prevalent. The economic growth in the short to medium-term will fall between 1% to 15% and the nuclear will remain expensive at well over $8000 per kilowatt hour.

 

 

The Energy Research Centre, ERC, at the University of Cape Town, predicts that under these conditions, nuclear will result in a sustained negative impact on the GDP in the range of 0, 1% to 2, 1% between 2020 and 2040. This is staggering when one considers that the country will only grow this year by 0, 9%. Simply put, the foolhardy decision to procure nuclear will have long lasting damaging effects on the economy for at least the next 20 years.

 

 

This drag on the economic growth, will in turn extinguish future job growth and destroy 75 000 existing jobs. Of jobs destroyed,

50 000 or nearly two thirds will accrue to those holding a matric qualification or less, namely the most vulnerable South Africans. As such, a decision in favour of nuclear will have to be disproportionately carried by working classes and the poor,

effectively undermining social justice and further straining social cohesion within South Africa.

 

 

Nuclear, therefore, poses a real threat to the future welfare of our people, while at the same time undermining the welfare gains already achieved. In light of the irregularities and the inconvenient economic facts, we must ask ourselves: Why is our government doggedly pursuing this nuclear deal? It is clearly not a deal in the interests of the poor; it is clearly not a deal in the interest of the business and it is clearly not a deal in the interest of the nation. Clearly, this is a deal in the interest of one man and one man only; that is Accused Number One! I thank you. [Applause.]

 

 

Mr M O DLAMINI: Chairperson, during our deliberations, what came out clear is that this ANC government does not run this government with superior logic or knowledge, but they run this government with gut feel. The Minister is here, and part of the budget is going to go to Eskom. When we ask her ...

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members!

 

 

Mr M O DLAMINI: When we ask the Minister: Do you have systems and measures in place to make sure that there is proper

monitoring system on the money that will be spent on Eskom? The Minister‘s response was that she doesn‘t have that system because she doesn‘t have oversight control of Eskom. But, let us tell you minister that it is only looting that is happening at Eskom. Last year when we were debating on this matter, we told you that Mr Cyril Ramaphosa is selling coal to Eskom; therefore he is a dishonest man.

 

 

When we said that, Mr Jacob Zuma was not aware that Mr Cyril Ramaphosa is looting money from Eskom. Immediately after he was aware, he went out to buy his own coal company called Tegeta.

Now, the two main suppliers of coal in Eskom, is Mr Jacob Zuma and Mr Cyril Ramaphosa. So, Minister, this gut feeling thing is not working. This what led to the loss of R14 billion Petro SA last year! You must put systems and measures in place to run the government.

 

 

Let us talk about the nuclear deal, Minister. I‘m glad that you mentioned your sons; maybe it‘s time that you listen to their advice. You must stop the nuclear deal, because it is another Nkandla in making. Remember the signs are there. In Nkandla, there was R200 million, the consultants and Mr Jacob Zuma. In this nuclear deal, there is the same thing, consultants,

R200 million and Mr Jacob Zuma. That cannot be a coincident. They are always ready to steal as they usually do.

 

 

We and the public know that it is the Gupta family again that is procuring the nuclear, not the South Africans. Now, let‘s talk about the petroleum sector, the liquid fuels. Minister, the only way you can transform that industry, is through the ownership of storage and refinery facilities, not this artificial BEE fronting which is happening.

 

 

As long as the multinationals companies own the storage and refinery facilities in this country, there is no way you will transform that sector, you‘re just wasting time. So, Minister, what you have to be doing instead of wasting money on new unaffordable and repeatable poorly planned infrastructure that runs into over expenditure, priority must be given to upgrading, refurbishment and extension of existing distribution network infrastructure.

 

 

We know that the ANC out of desperation, they are busy fabricating statistics on the number of households with access to electricity. Even if they do so, the reality is that our people on the ground do not have electricity. Those who have electricity, they cannot afford it. It has become a matter of

choice between electricity and bread. It is even worse for pensioners who do not have money, the pensioners you have sent the police to assault outside Parliament. They do not have money to buy electricity.

 

 

It is clear that National Energy Regulator of South Africa, Nersa, is out of touch as well, despite all the evidence and submissions from different stakeholders, it is still continuing to increase the tariffs. The persistent dependent on coal, while South Africa is blessed with vast sources of renewable energy, is a clear sign of a government misguided. It is not a surprise that the solar water programme has fumbled and the committee didn‘t bother, but they just copied. South Africa can create thousands of jobs if renewable sources of energy can be exploited to their full potential. The EFF rejects this Budget Vote! Thank you.

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, you can leave the podium now!

 

Mr M O DLAMINI: No, wait!

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Dlamini, could you leave the podium now! Thank you!

Mr M O DLAMINI: But you still owe me an apology!

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Dlamini, for the second time ... [Interjections.]

 

 

Mr M O DLAMINI: You still have to apologise!

 

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Dlamini, would you leave the podium?

 

 

Mr M O DLAMINI: You owe me an apology; you know that!

 

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): There is no apology, hon member!

 

Mr M O DLAMINI: You will apologise at a later stage!

 

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, I‘m asking you now for the last time to leave the podium!

 

Mr M O DLAMINI: No! You can‘t threaten me with anything! You owe me an apology and I need that apology!

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, will you leave the House! Will you leave the House!

 

 

Mr J A ESTERHUIZEN: Thank you Chairperson and Minister. [Interjections.] We could never underestimate the impact and severity of power constraints to socioeconomic growth in South Africa. This coupled together ...

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Esterhuizen, will you take your seat please? Hon Dlamini, I have ordered you to leave the House. [Interjections.] Will you leave the House please?

 

Mr M O DLAMINI: But you have not apologised.

 

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Will you leave the House? [Interjections.]

 

 

Mr M O DLAMINI: You have not apologised. [Interjections.]

 

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): May I ask the Serjeant- at-arms to assist the hon Dlamini to leave the House? [Interjections.] Hon Esterhuizen, you may continue.

Mr J A ESTERHUIZEN: This coupled together with long project delays and spiraling budget costs in the construction of state- owned property utility Eskom, Medupi and Kusile coal power stations places Eskom in both an energy supply side and budget crisis.

 

In the next few years Eskom must repay the long-term loans to build these new plants which total approximately R110 billion. If they were fully operational in 2014 and 2017 respectively, as had been planned, the incurred debt would have been paid through normal cash from operations.

 

 

Why should the citizens of this country have to pay for such

incompetence? has

 

just further rewarded their inefficiency by allowing an above inflation increase of 9,4%. Electricity tariffs have now reached the point where every increase in price results in less demand.

 

 

The department‘s lack of transparency with regard to nuclear is a concern. There is also a real risk that South Africa could experience an outright recession in the last quarter of this year. How would it be financially viable then to justify the enormous financial impact of a R1 trillion nuclear build on an already strained economy? The rand‘s plunge which might erode

its credibility will in turn make international projects so much more expensive. The government has shown conclusively that it is unable to manage simple coal-fired electricity builds. Going the nuclear route will make the disasters of Medupi and Kusile seem small in comparison.

 

South Africa signed a treaty with the Democratic Republic of the Congo, DRC, in 2013 for hydropower. Construction was supposed to start in October 15 last year, and as far as my knowledge is concerned no sod has been turned over and we had to pay

US$10 billion deposit. What happened to that money?

 

 

 

We as the IFP feel that the maturing renewable energy sector will make South Africa?s power system more sustainable and equitable. With exceptional solar and wind resources, South Africa could become a hub and lead the way for the production of renewable energy in Africa.

 

 

Fossiel brandstof wat verantwoordelik is vir 90% van ons kragopwekking is nie net skadelik vir die atmosfeer nie, maar dit het ook ‘n onsaglike negatiewe impak op die onmiddelike omgewing waar byvoorbeeld koolmyne geleë is, asook op die gesondheid van die mense in die naby geleë gebiede. (Translation of Afrikaans paragraph follows.)

[Fossil fuels, which account for 90% of the electricity generated, is not only harmful to the atmosphere, but also has a vast negative impact on the environment surrounding mines, as well as on the health of the people who live there.]

 

 

Case studies have also proven that gas can create success in energy efficiency. Economic hurdles hindering South Africa from developing gas and its infrastructure include a persistent lack of clarity regarding the economic feasibility of regional gas supplies; the need for a stable legislative environment; a lack of commitment; and the significant capital investment required to do so.

 

 

In conclusion, we are encouraged by the government's support and recognition of the value and contribution that renewable energy can play in our energy mix. The Minister and the department must also be commended on the 280 000 new grid and nongrid connections that will be delivered in this budget cycle. The IFP supports the Budget Vote debate. [Applause.]

 

 

Prof N M KHUBISA: Sihlalo namalungu ahloniphekile ale Ndlu. [Chairperson and the hon members of this House.]

Minister, we have to measure you in line with the objective and the mandate of the department. The department must ensure that diverse energy resources are available in sustainable quantities and at affordable prices. There can be no doubt that the steady, sustainable and affordable supply of energy is important for domestic consumption and economic growth.

 

 

The department has been allocated R7,5 billion which represents a 0,8% increase on the previous financial year. Considering the enormous need for energy in South Africa and considering the huge backlog in the national electrification programme, the NFP believes that the funds allocated is insufficient.

 

When looking at our current energy mix, we have to ask ourselves whether we can continue with our reliance on fossil fuel driven electricity which is high in cost, nonrenewable and harmful to both humans and the environment. The answer is obvious; we cannot.

 

 

The NFP believes that we cannot afford the cost and risk associated with the large-scale nuclear energy generation either. It appears that the government is hellbent on pushing through with its nuclear energy deal despite the fact that we cannot afford the costs. However, that is typical of the current

ANC government to bulldoze ahead with its plans regardless of public opinion and opposition from civil society. [Interjections.] We saw it with the e-toll fiasco in Gauteng and we see it now with the nuclear energy deal too.

 

 

It is our opinion that our future energy needs ... [Interjections.] ... will best be met through ...

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Order hon member!

 

 

Prof N M KHUBISA: ... developing the country's wealth of untapped clean and renewable energy generation potential capacity. We have virtually unlimited access to stable solar power possibilities in South Africa and significant potential for wind-driven energy generation along our coastal areas. The NFP is also dismayed at the backlog in electricity distribution infrastructure.

 

 

Ngqongqoshe, ngifuna ukuthi abantu bakithi uma bekhuluma ngendaba yamandla bakhuluma ngokuthi sinawo yini ugesi ozosisiza ukuthi sipheke. Sinawo yini ugesi ozosisiza ukuthi sikhanyise nokuthi izingane zethu zifunde. Yilokhu abakhuluma ngakho.

Njengoba kumakhaza nje abantu bakhuluma ngedaba yogesi

ikakhulukazi ezindaweni ezisemakhaya lapho kusasalele emuva khona ukuthi abantu babe nogesi.

 

 

Siyabona ukuthi emadolobheni mhlawumbe uhulumeni uza kahle kodwa akawusabalalise ugesi nasezindaweni zasemakhaya ukuze abantu bawuthole. Abantu abadala bayawudinga ugesi, labo abangasenayo imali bafuna ukuthi bathole ugesi oshibhile abazokwazi ukuwukhokhela. Yilokhu abantu abakufunayo futhi sinxusa ukuthi uNgqongqoshe akwenze ngokushesha okukhulu, ikakhulukazi ezindaweni zasemakhaya.

 

Ngqongqoshe, ukuze uqhubeke nohlelo lokuthi ... (Translation of isiZulu paragraphs follows.)

 

[Minister, I want to say that when our people talk about energy they mean the availability of electricity that will help them cook. Do we have electricity that will help us light the houses so that our children can study. This is what they are referring to. Since it is cold, people are talking about electricity especially in the rural areas where they still do not have electricity supply.

 

We can see that in the urban areas government is doing well but electricity must be available to the rural areas too so that the

people can access it. The older people need electricity, those who do not have any income must have affordable electricity that they can afford. This is what the people want and we plead with the Minister to do this speedily, especially in the rural areas.

 

 

Minister, for you to continue with the plan that ...]

 

 

 

... the future must have that clean and environmentally sound renewable energy. That‘s what we need in our country.

 

 

Nanokuthi ... [And that ...]

 

 

 

... we still maintain as the NFP that we need transformation in this sector. We need transformation in this energy sector, in the ... [Inaudible.] ... we need transformation; in the aviation sector we need transformation; in the shipping sector we need transformation; in the construction sector we need transformation; and in the clothing sector we need transformation. We will continue to talk about it. Having said Minister ...

 

 

... uma lezi zinto zenziwa besifuna ukusho ukuthi sifuna ukugxeka sibuye sakhe ukuze lezi zinto zilungiswe, kodwa kunalokho sifuna ukuthi lesi sabelomali sisixhase ukuze

niqhubekele phambili, nisebenze nilungise lezi zinto esizishilo njenge-NFP. Siyasixhasa lesi sabelomali. [Ihlombe.] (Translation of isiZulu paragraph follows.)

 

[... if these things are done, we like to say that we want to criticise constructively so that these things can be corrected, moreover we want to support this Budget Vote so that you can continue working on correcting the things that we have mentioned as the NFP. We support this Budget Vote. [Applause.]]

 

 

Nkul R T MAVUNDA: Inkomu mufambisi wa ntirho wa ntshamo wa siku ra namuntlha. Ndzi khensa nkarhi lowu u ndzi nyikeke wona leswaku ndzi vulavula hi Vhoti ya Mpimanyeto ya Ndzawulo ya swa Eneji. Mufambisi wa ntirho, u nge loko ndzi nga si vulavula hi mhaka leyi ndzi teleke yona, ndzi pfumelele ndzi kombisa leswaku hi rhandza ku khensa vamanana eka siku ra vona leri a va ri kungahatile. Nakambe ndzi nga rivali ku khensa manana loyi a ndzi tswaleke hikuva hi yena loyi a endleke leswaku ndzi kumeka ndzi ri kona emisaveni.

 

 

Ndzi kombela ku tlhela ndzi vula leswaku eka Holobye wa Ndzawulo ya swa Eneji, Joemat-Pettersson xikan‘we na Manana Thembi Majola loyi na yena a tirhaka eka Ndzawulo ya swa Eneji, ndza mi xeweta. Ndzi xeweta na nhlengeletano hinkwayo leyi nga kona ku

katsa na vatirhikulorhi. Ndzi pfumeleli ndzi kombisa leswaku eka xiyimo lexi hi nga eka xona mayelana na gezi leri ndzi nga ta vulavula hi rona, ndzi ta sungula ndzi kombisa nhlomulo lowu ndzi nga tshama ndzi wu vona wu endliwa hi gezi. Leswi swi ndzi tsundzuxa nkulukumba un‘wana a ndzi tirha na yena emayini ya Palabora Mining Company, PMC, hi 1985, loyi a nga sungisiwa hi ku tirhisa gezi. Moya wa yena onge wu nga etlela hi ku rhula. Leswi swi endliwile hi lunya na kungu ra makungu ya lavo biha, ku nga valungu lava va nga va na moya wa sathani kumbe javulosi. [Ku hleka.]

 

 

Ndzi rhandza ku tsundzuxa vaakatiko leswaku va nga rivali leswaku hi nkarhi wa mfumo wa xihlawuhlawu, tilayini ta gezi a ti hundza magidigidi ya vanhu ti kongoma eka munhu wun‘we epurasini. A ri munhu un‘we, kambe hikwalaho ka nhlonge ya yena a vuriwa vanhu, naswona gezi a ri va ri hundzile vanhu vo tala. Maafrika a hi twisiseni leswaku loko a ku nga ri vandla ra ANC leri nga hi humesa evuhlongeni, ku fikela na namutlha gezi a hi ta va hi ri hava. A hi tsundzukeni nakambe leswaku vakhale va vurisile loko va ku: ?Khamba ri dlele n‘winyi wa nsimu?.

 

 

Namuntlha lava a va hundzukile mahlonga ya lava va taka va famba va huma lomu va humaka kona, va fika va hi byeletela leswaku hi fanela hi endla yini kumbe hi nga endli yini. Loko va fika a va

khomile Bibele. kutani Va fike va hi nyika Bibele, kutani va teka misava ya hina. [Ku hleka.] Sweswi loko hi lava misava, va lava ku hi xavisela yona. Nawu wa tiko ra hina ra Afrika-Dzonga a wu pfumeli leswaku hi xava swilo leswi yiviweke hikuva loko u xava swilo leswi yiviweke swi komba leswaku na wena wa yiva. Hi xaviseriwa swilo leswi hina hi nga lo tekeriwa swona, vona a va swi xavanga. (Translation of Xitsonga paragraphs follows.)

 

 

[Mr R T MAVUNDA: Thank you Chairperson of today‘s sitting. I want to thank the opportunity afforded to me to debate on the Budget Vote for the Department of Energy. Chairperson, before I can embark on the task at hand, allow me to show my gratitude to the mothers on their proposed date. Let me also not forget to thank my biological mother because she made it possible for me to be in this world.

 

I would also like to say to the Minister of Energy, Joemat - Pettersson as well as Ms Thembi Majola who is an employee of the Department of Energy, I salute you. I salute the entire gathering present here including my colleagues. Allow me to start off by indicating the current situation that we find ourselves in regarding electricity which I want to talk about by showing the sheer sadness that I once witnessed being done by it. This reminds me of a certain gentleman who in 1985 was my

colleague at Palabora Mining Company, PMC, who was electrocuted. May his soul rest in peace. This was due to the hatred and evil acts by evil people, namely the whites who had evil or demonic spirits. [Laughter.]

 

 

I would like to remind the citizens that during the apartheid era, electrical lines would pass thousands of people to an individual in a farm. It was an individual, but due to the colour of his skin, he was referred to as the people, then electrical lines would bypass the masses. Africans, let us understand that if it were not of the ANC which led us out of bondage, we would not be having electricity to date. We should also remember that there is a Xitsonga saying which loosely translates to ?A foreigner benefited at the expense of the owners of land?.

 

 

Currently those who were made to be slaves of the foreigners instruct us on what we should do or not do. On their arrival, they brought Christianity and took our land. [Laughter.] At this point in time when we demand land, they want to sell it to us. Our South African law does not permit us to buy stolen goods because if you do so, you are a thief. We are made to buy the land that was taken away from us of which they did not buy.]

Let me indicate from the start that the implementation of the house connection is with us. Household electrification strategy which the ANC has deployed is working. To start with before I forget ...

 

 

... ndzi rhandza ku kombisa leswaku hina tanihi ANC ha wu seketela Vhoti ya Mpimanyeto leyi, hikuva ANC yi na makungu na nongonoko lowu wu nga ta fambisa vukorhokeri. Hi rhandza ku wu amukela hikuva wu ta fanela ku yisa vukorhokeri byo antswa eka vaakatiko. Hambiloko swiyimo swi ri hi ndlela yoleyo, ha swi twisisa leswaku ku na mintlhontlho kumbe swiphiqo leswi nga kona. ANC yi tilulamiserile ku swi fikelela. (Translation of Xitsonga paragraph follows.)

 

 

[... I would like to indicate that we as the ANC support this Budget Vote because we have plans and programmes that will facilitate service delivery. We would like to support it because it will render better service delivery to the citizens. Even though the situations are like that, we do understand that there are challenges or problems. The ANC is prepared to intervene.]

 

 

But, let me indicate that the approval of the New Household Electrification Strategy by Cabinet in 2013 has started its implementation. The defining of universal access as 97% of

households, as full electrification is unlikely to be possible due to growth and delays in the process of formalisation of formal settlements.

 

Ku na swilo leswi mikarhi yin‘wana hi swi vonaka leswaku hi swona swi hi salerisaka endzhaku, kambe hi le ku swi endleni leswaku swi kota ku fikeleriwa. Loko ndzi languta nkarhi wa mina, mufambisi, ndza swi vona leswaku wu dyiwile hi makondlo. Ndzi kombela ku kombisa leswaku swin‘wana swa swiphiqo leswi hi nga na swona ... (Translation of Xitsonga paragaraph follows.)

 

 

[Sometimes there are issues we are aware of that draw us back, but we are striving to resolve them. Chairperson, I am aware that my time has expired. I am requesting to indicate that some of the problems that we encounter ...]

 

 

... is Lack of resources in Eskom, nonreporting of municipalities, Eskom policies need to be reviewed to accommodate renewable energy and its research outputs. Most of the backlogs are within Eskom area of supply. The sharp increase in cost per connection as the programme is rolling out in rural areas.

Hina tanihi mfumo lowu rhangeriweke hi ANC hi kongoma hi ya emahlweni. [We as the ANC-led government are moving forward.]

 

 

Let me indicate that this is the government of the ANC at work. Siyaqhuba [We are moving forward.] We are not like the opposition who are professionals in opposing everything including success stories, like that of Lungelwa.

 

 

Laha hi na wanhwana loyi a nga titumbuluxela ntirho eEastern Cape hi ku tirhisa eneji leyi pfuxetiwaka. Nhwanyana loyi u kotile ku endla kiyosiki leyi eka yona a kotaka ku xavisa gezi ra mali ya le hansi leri ri endlaka leswaku a swi kota ku tiendlela kumbe tixavisela rona ... [Nkarhi wu hela.] [Va phokotela.] (Translation of Xitsonga paragraph follows.)

 

[We have a young woman from the Eastern Cape who has created her own employment through renewable energy. This young woman was able to establish a kiosk wherein she can sell low cost electricity which enables her to generate or sell it ... [Time expired.] [Applause.]]

 

 

Mrs C DUDLEY: Hon Minister, the ACDP is concerned that discussing nuclear power in South Africa seems to be anything but a priority. Many people cannot understand why contrary to

massive costs and foreign experience, the nuclear procurement plan appears to be going ahead. We are also told by experts that these plans could involve as much as R1 trillion in public spending. For the ACDP, one of the most pressing issues linked to nuclear projects is the disposal of dangerous nuclear waste.

 

With Eskom looking to extend the life of Koeberg to 60 years and with additional nuclear projects, the public need far greater clarity on the country‘s approach to the management and disposal of spent fuel. Questions like, what will we have to do when in just two years time spent fuel pools at Koeberg are full and why will capital costs for transient interim storage and a centralised facility only be confirmed on completion of the procurement process. These are just some of many questions needing answers. There are many who want to sell the concept of nuclear energy as clean energy as we heard even here today using the environment as an excuse while others like Anton Eberhard, Professor at UCT Graduate School of Business and member of the National Planning Commission on Energy are of the opinion that we can‘t afford and don‘t need nuclear energy.

 

 

Alternative energy technology has made great progress and wind power is down to 57 cents per kilowatt hour Eberhard has challenged any nuclear vendor to sign a long term contract for

less than R1 per kilowatt hour. In India, solar power is now cheaper than coal and nuclear‘s capital cost per megawatt is now said to be double that of solar. Hon Minister, with this in mind can we expect an announcement soon officially abandoning South Africa‘s earlier idea of a 100 billion dollar nuclear programme, if possible.

 

 

In 2008 following the black outs the country experienced, government invited independent power producers to sell electricity to the country‘s power supplier, Eskom which according to a report last September has so far procured 6, 327 MW from independent power producers. At the end of June 2015, 1, 860 MW had come online. The investments pledged totalled over R192 billion. The ACDP has championed alternative energy consistently and we are pleased to see that installed solar energy generation costs have decreased dramatically. Africa boasts excellent available energy from the sun as well as abundant land on which to set up solar energy infrastructure and has proven Public Private Partnerships, PPPs.

 

 

Now, the ACDP urges government to prioritise these PPPs and apply the political will needed to ensure processes which are presently extremely cumbersome, that they are fine tuned. We are told there are no less than six distinct phases involved with

approval gates at each stage and then the added complexity of BBBEE requirements and various other obligations. Job creation and growth demands that government commits in creating an environment, favourable to investors in PPPs.

 

 

Despite challenges, solar power has been shown to produce strong job growth wherever it has been deployed, and is also something that can benefit entrepreneurs in Africa. Creamer Media?s Energy Roundup for December 2015 shows South Africa ranking as an investment destination for renewable energy and the ACDP applauds our scientific community who have risen to the challenge of creating technology to fill the energy gap. The ACDP will support this budget despite our opposition to the proposed nuclear build lack of clarity around existing nuclear energy. We remain hopeful that sanity will prevail. Thank you.

 

 

Ms G N NOBANDA: Hon Chairperson, hon Minister, Deputy Minister, hon member, Director General, management of the department, our distinguished guests, ladies and gentlemen in the gallery, Dumelang, Molweni, Sanibonani, Goeidag, Good afternoon, Madume, inhlekane, Thobela, Ndematsheari, Lootshani.

 

Hon members, this Budget Vote takes place under the shadow of the day of remembering the passing of our Isithwalandwe

,Seaparankwe, the ANC stalwart Comrade Ruth Segomotsi Mompati who passed on the 12 May 2015. Mama Ruta as she was affectionately known, leaves behind a proud legacy of steadfastness, resilience, and selflessness in the face of daunting challenges, we of our generation still commit to continue to walk in her footsteps.

 

 

Re a re a mowa wa gagwe o robale ka kagiso. Modulasetulo re le seboka sa ANC re atlenegisa Tekanyetsokabo ya Lefapha la Matla ebile re akgola bomme ba ba le eteletseng pele. Mmangwana o tshwara thipa ka fa bogaleng. Re bua jaana re netefatsa gore ba e tshwere bo mme Tona le Motlatsatona. Tota fela re kare, Mosadi tshwene o jewa mabogo. (Translation of Setswana paragraph follows.)

 

[We are saying may her soul rest in peace. Chairperson, we, as the ANC, support the Budget Vote of the Department of Energy and commend the women leading it. A mother would go to any length in protecting her children. We are saying this as we are sure that these women, the Minister and the Deputy Minister, are really taking this department forward, and that is the truth.]

 

 

House Chair, the National Development Plan outlines the need for an energy sector that promotes economic growth and development,

promotes social equity through expanded access to energy services that are sustainable and contribute to the reduction of pollution and the mitigation of the effects of global climate change. The ANC manifesto identified the access to reliable energy supply in all its forms, as a priority for this administration. At the 53rd Conference of the ANC at Mangaung, we reiterated the pillars from the Polokwane conference regarding energy;

 

 

Ensuring energy security and promoting clean and renewable sources of energy supply; integration on a fair and equitable basis with the economies of Southern Africa and building stronger economic linkages across the continent as a whole; in addition to creating jobs, eradicating poverty and overcoming extreme inequality, our transformation agenda also embraces the creation of a non racial entrepreneurial class; SMME and BEE policies should focus on the development of entrepreneurs providing productive inputs into the real economy.

 

 

Kgobokgobo wa ikgobokanyetsa. [Go to the ant, consider her ways, and be wise.]

 

The solar resource that we have in this country is second to none and our energy strategy cannot exclude its exploitation in

a big way. Clean energy forms an integral part of the 9 point plan of our government, which embodies our strategic framework for creating jobs, up skilling our people, creating economic development through industrialization and local enterprises. The green economy is a game changer that we have been very successful at adopting through the renewable energy IPP programme. The department needs to redouble its efforts in creating more economic activity through the green economy.

 

 

Re ntse re baakanya ditlamelwana tsa pula go santse go le gale. [We are making hay while the sun still shine.]

 

 

The development of storage to supplement wind and solar technologies provides viable and cost effective clean energy solution in our future power system. As we approach about 6 O00 megawatts of renewable energy capacity in our electricity network, more research needs to be conducted to determine how we can deploy solar, wind, fuel cells and smart grids to improve our energy security. Chair, South Africa has Koeberg Nuclear Power Plant that has operated safely for more than 30 years and supplies electricity to the Western Cape.

 

Jaanong ba ba kafa, ke bo seilakgaka senwamoro ka gore ga ba batle Polanta ya Matla a Nutlere mme ba ungwa go tswa mo

Koeberg. [Now the hypocrites on this side do not want the Nuclear Power Plant as they are benefiting from Koeberg.]

 

 

It is important to note that Koeberg is the only nuclear power plant in the African continent. This is the most efficiently run power station among the Eskom Power fleet and produces the electricity at the lowest cost and it subsidise the cost of other power generations and contribute to the lower tariff to the consumer. It is important to note that economy of the Western Cape is dependent of Koeberg to provide the required clean base load electricity needs. This power station provides direct jobs to more than 2000 people of the Western Cape.

 

Mosekaphofu ya gaabo ga tshabe go swa lentswe. [A person fighting for what is rightfully hers/his never gives up despite all the hurdles.]

 

 

The ANC led government actively supports jobs and skills development in the local nuclear industry and in particular provides funding each financial cycle to its sector State Owned Entities such as the National Nuclear Regulator, the South African Nuclear Energy Corporation and the National Radioactive Waste Disposal Institute. So far, these institutions operate on the back of sufficient manpower supply. This current nuclear

industry provides about 5000 direct jobs for highly skills nuclear professionals, artisans, technicians.

 

 

The ANC government has made great strides in diversifying our energy mix by introducing clean energy technologies into our energy mix. On the supply side, significant progress has been made in introducing utility scale renewable energy technologies through the IPP programme; notwithstanding the success of the renewable energy programme in introducing clean energy. There is a need for more work to be done to improve our energy efficiency in the residential sector.

 

 

Bojang jwa pitse ke jo bo mo mpeng, jo bo mo ganong e swa e bo hupile, jo bo kwa ntle e swa e bo lebile. Jaanong re le mokgatlo wa ANC re rata gore kgakakgolo ga kena mebala, mebala e dikgakaneng. Mo ntlheng eno, mebala ya rona e bonwa mo setšhabeng ka diphitlhelelo tse di latelang; (Translation of Setswana paragraph follows.)

 

 

[Don‘t count your chicken before they hatch. So, as the ANC party, we would like to say a tree is known by its fruits. On this point the nation can vouch on the quality of the work we have done by the following achievements:]

The department will be sending students to attend focused training in various countries. In this regard, 50 trainees from government nuclear industry entities were sent to China in April 2015 for phase one of nuclear training, and plans are underway to send an additional 250 trainees to China. It is the ANC led government that sponsored one of the South African students Mr Bongisipho Mkhize from Umtata in the Eastern Cape,

who received a scholarship to study Nuclear Engineering Master‘s degree at KEPCO International Nuclear Graduate School, KINGS, for 2016. South Korea has an existing training programme for Master's Degree in Nuclear Engineering in KINGS.

 

 

Nuclear Professionals from nuclear organizations have successfully attended the programme and now are applying their skills in the industry. To date, a total of R53 million has been contributed to enterprise development by operating IPPs. The programme has also broadened Black Economic Empowerment, as Black South Africans own, on average, 30% of these projects.

 

 

Modulasetulo, tau e senang seboka e siiwa ke none e tlhotsa. A ke feleletse ka gore Mosotho a re, se latelele none e feta e tlhotsa [Tsenoganong.] ... o tla wela lengopeng. Bao ke batho ba di diaparo tse di khibidu. [Nako e fedile.] [Tsenoganong.] [Legofi.] (Translation of Setswana paragraph follows.)

[Chairperson, together we can do more. In conclusion Mosotho once said: Don‘t follow the weak [Interjection.] ... you will end up in trouble. Those are the people in red overalls. [Time expired.] [Interjections.] [Applause.]]

 

 

Mr L R MBINDA: Greetings to all of you. The PAC is genuinely excited about the Department of Energy getting its unqualified audit report. It was the first and we hope it was a reflection of tighter controls systems. We hope it is a maturing of systems and processes. Furthermore, we appreciate the disappearance of load shedding in our communities that was killing a lot of small businesses mostly in poor communities. However, we remain concerned that the power stations promised are still offline. We are only told that the current maintenance schedules changes the game.

 

 

However, the PAC does not agree that this department on the right track. Understandably, it is misguided by the National Development Plan, NDP, which is contradictory in its narrative. While the NDP professes great state capacity on one hand, on the other it wants everything to be done by the private sector. The crafting of the Integrated Energy Plan is from this flawed paradigm. A scheme conceived from corrupt intensions.

It is immediately visible on the nuclear element of the plan. This element is driven from foreign interests of some radioactive mineral miners. Their interest is to have a buyer for the material and not for optimal energy production. These are corrupt intentions. The building of the plant seems already promised to Eurasian country even before the procurement process starts. These are corrupt intentions.

 

 

The PAC views the Renewable Energy Independent Power Producer no differently. It is still the intention to weaken the State Owned Enterprise to use the economies of scale to maintain low cost of energy. It is a programme of dishing out our taxes to buddies. A piece of this Budget is reserved for some people‘s buddies rather than energy requirements.

 

The petroleum products continue to throttle the thoughts of citizens. The real reason is not the currency crises of developing nations. The crisis is that this product comes from developing nations but we agree to buy them with a dollar denominated prices. Why are we not buying with the currency of country of origin? The heavy yoke of impressing the International Monetary Fund, IMF, and World Bank is inflating our logistics cost. When are going to clear our rights that international law ascribe to us as sovereign nation?

The petroleum products price crisis for the citizens is compounded by use on middle man by metro. This is another practice of corrupt intent. The middle man inflate price. Why is PetroSA not going direct to producing companies?

 

 

This crisis is finished off by crazy logic in price formula. Why would the fuel in our country be highest in Southern African Development Community, SADC? SADC countries buy their fuel from refinery based in this country. Once again, corrupt intentions. Why is this formula not considering inexpensive fuel produced from coal? It is this corrupt intension that creeps everywhere.

 

 

We therefore, support this Budget. I thank you.

 

 

Mr P VAN DALEN: Hon Speaker, I have uncovered a code during my tenure as Member of Parliament of this House. The code is to Follow the Money. For my speech I would like to say we need to follow the trail of the big money, which lead us to the mysterious island. I want all of the Members of Parliament in this House to follow me on the road to the Mysterious Island.

 

 

The code is Follow the Big Money. Every year we are criticised for looking at small amounts that are negligent and a small percentage of the overall Budget. So, this year

I told myself I would select a large amount in this Budget and only focus on that.

 

 

 So, the amount I found was R117 billion on table 26,20 under current expenses in 2014 -15. In the 2014 Budget estimate for this year, it was going to be R140 billion. This is quite a gigantic amount, R140 000 million. To put it in context it is double Eskom‘s annual turnover at about R70 billion. A lot of money in anybody‘s terms.

 

 

The reasons that were given in the 2014 National Budget for the income and expenditure stream is on page 689 and I quote:

 

 

Over the medium term, total expenditure is expected to increase as well, to R141 billion in 2016. Due to the incorporation of the operating results of Irene into the budgeted financial over the planning period.

 

 

You see it has nothing to do with Project Ikhwezi. In the 2013-14 the Central Energy Fund integrated annual report, page 37, you will find that project Irene was hailed to be nearing financial closure

For those that don't know what Project Irene is, due to it being veiled in secrecy and mired by controversy, it was PetroSA‘s attempt to gain a foothold in the fuel retail and forecourt space, by acquiring from Malaysian state oil company Petronas a stake in Engen, South Africa's largest fuel retailer. Petronas holds 80% in Engen and the remaining stake is held by the black-controlled Pembani Group. And for those that still don‘ t know, Pembani gained that stake when it was merged with Shanduka, which at the time of this deal belonged to our own King of Coal the hon Ramaphosa himself. Is this coincidence or not?

 

 

Mr Deputy President, let me tell you, you cannot absolve your responsibility by just walking away from your past dealings to try and start life with a clean slate just because you want to be the President of this country. Your dealings will come and haunt you and will always be scrutinized.

 

 

Business Day last year wrote and I quote:

 

 

 

The board of PetroSA was repeatedly advised by both transaction advisers and the Treasury that the proposal to buy the Engen stake did not make good business sense. However, the

project was strongly championed by Ms Joemat-Pettersson and President Jacob Zuma. In the end, the deal fell through due to lack of financing.

 

Instead of listening to the advice of Treasury and the advisors from global investment bank HSBC as transaction advisers, they fired HSBC and appointed a local fund management firm Harith, without any due tender procedure. Harith‘s letter of appointment promised it more than 10 times HSBC‘s reward; a success fee of R371 million on a R14 billion deal plus a monthly retainer of R1,3 million. Then there were the legal costs to Mr George Sabelo that were part of the deal. His involvement is clouded in corruption and double invoicing of millions of rand and ended up with his employer distancing himself from Mr Sabelo and his underhanded dealings.

 

 

So what went wrong with project Irene? That is the R100 billion question. This is the uncovering of the code - Follow the Big Money to the Mysterious Island.

 

 

For a project this size there would have had to been the highest level of authorisation and collaboration. The best advisors would have had to be appointed and the money that was paid to sweeten the deal must have been exorbitant. Why was the advice ignored and what value did we get for our bribes and commissions? Just the due

diligence exercise must have cost a small fortune; financial viability and asset registers that had to be compiled and audited. What where the penalty fees and who ends up paying for all these?

 

 I am sure the Minister would come and tell you that no taxpayers‘ money was spent. The truth is that this is a state owned company, which if it makes a profit; the profit gets paid back into the fiscus. If they make a loss, we have to bail them out. They cannot go bankrupt as do private companies, so when they deal recklessly it is taxpayers‘ money that is wasted.

 

 

Can the Minister please provide these answers as it seems that she herself was closely involved in these dealings? Can the Minister please enlighten us as to what is happening on this Mysterious Island? Let her please help us by giving us insight about the Big Money - the billions of rand from the department. Let her please help us to uncover the code and secrets of Following the Big Money to this Mysterious Island.

 

 

Thank you. [Applause.]

 

 

 

Ms T MAHAMBEHLALA: Chairperson, hon Minister of Energy, Members of Parliament, guests in the gallery, officials of the

Department of Energy led by director-general Thabane Zulu, receive my revolutionary greetings.

 

 

Chairperson, we are gathered here to endorse a budget that facilitates transformation and a path to continue making tangible gains in our 22-year-old democracy. We know our economy is driven by the minerals-energy complex. As we have seen with the major turnaround in Eskom, stable energy is critical if we are to have any form of economic growth. Energy should be located at the centre of economic growth with the Department of Energy as sole driver. The Department of Energy has committed to a countrywide rollout of our economic and social infrastructure programme. These programmes will be the catalysts for inclusive economic growth and job creation, as well as bringing back humanity to impoverished citizens.

 

 

Furthermore, this budget facilitates the exploration of oil and gas, including shale gas exploration. This initiative will be a real driver of economic and social transformation.

 

 

I have no doubt that, as a patriotic South African, one would support the budget tabled before us for the following reasons. Approximately 88% of South Africans now have electricity. In the past financial year, this government facilitated a new source of

energy in the form of solar energy, powering over

 

100 000 households in three provinces. The department has established a world-renowned renewable energy programme, which is expected to add approximately 7 000 MW to our grid and, amongst other things, this department has empowered over

1 000 women in the oil sector.

 

 

 

This is a sign that we are truly dealing with the legacy of the despotic apartheid and transforming the state from one which is designed to cater for an exclusive class – mainly white South Africans – to one which makes the lives of the majority – mainly blacks – more humane. However, I have mentioned only patriotic South Africans will share these sentiments. Unfortunately, we sit with hypocrites, naysayers, and people who long for the chaotic era of apartheid. We have heard from some of them about their ?Holy Land?, the Western Cape.

 

 

However, this province is far from holy. In fact, it is where evil finds refuge. How else do we explain to South Africans the revelation that R6 million was diverted from the education budget supposedly to deal with gangsters? [Interjections.] Then we are to find out that the MEC for Community Safety in this province, one Dan Plato character, is in cahoots with the very

same gangsters the education budget was compromised for. [Interjections.]

 

 

Having said this, I am reminded of a passage from a book entitled Stupid White Men ... and Other Sorry Excuses for the State of the Nation! by Michael Moore. He says:

 

Such a nice name - the Holy Land - for a place with more evil acts per square mile than the VIP room at Satan‘s annual marshmallow roast.

 

Hon Minister, when a province deprives an African child of the opportunity to be the next astrophysicist, nuclear physicist or engineer by disinvesting in his or her education, what does one do? [Interjections.] Well, let me tell you. We, the ANC, do not run to the courts to find a political solution. We deal with the problem directly on the ground ... [Interjections.] ... because that is what really matters to South Africans. The theatrics in court rooms and the media do not result in tangible change for most South Africans. That is why I can stand here proudly and say this ANC changes the lives of people, especially that of the African and black child. [Interjections.] We do not uphold white privilege because we are truly cognisant of the fact that the

future of this country lies in the hands of an African scientist.

 

 

With the assistance of the Department of Energy and MTN, my parliamentary office in Khayelitsha held a successful career expo which focused primarily on mathematics and science. This expo was attended by 6 000 learners, and we also honour the top learners who emanate from the schools that are impoverished by your Dan Plato and his cronies.

 

 

It gives me great pleasure to say to you that today, in the gallery of this august House, we have learners from Khayelitsha who achieved distinctions in mathematics and science and are currently studying at various institutions of higher learning around Cape Town. [Applause.] I believe that these learners are our future scientists and physicists. Here today, we have Sibusiso Mndiniso from Luhlaza Senior Secondary School studying chemical science at the University of the Western Cape, Qhamani Maqungo and Lwandile Dlovo from Siphamandla Senior Secondary School studying mechatronics at the University of Cape Town, Unam Monakali from Siphamandla who is studying chemistry and biogenetics, and Oyama Makanda who is studying towards a BSc degree. [Applause.]

To deprive these learners of a quality ... [Applause.] Here they are. To deprive these learners of a quality education is an evil act the Western Cape commits brazenly. [Interjections.] Education remains at the top of the ANC‘s agenda.

 

 

As I draw ... let me address hon members on one stupid assertion and a nonsensical one from the opposition – that there must be change in this country. Another passage from the book Stupid

White Men

Nation! by Michael Moore will respond to you fittingly. He says,

 

?If you‘re white, and you really want to help change things, why not start with yourself?? [Interjections.] Spend time with your

fellow whiteys like Sparrow and Matthew and talk about what you can do to make the world a little better for white and black

South Africans alike.

 

 

 

Stop the next white person you hear making a stupid, racist comment and set him straight. Quit your whining about affirmative action. [Interjection.] No black person is ever going to ruin your life by getting the job you deserve. The door will always open for you. Your duty is to hold it open for those who have had fewer opportunities simply because they aren‘t white.

Hon Van Dalen, it is important that you tell South Africans today about how you and the metro police shot rubber bullets at innocent children who were playing soccer late at night in Khayelitsha. [Interjections.] After that, you crucified that journalist. What you are not telling South Africans about nuclear energy is that Nersa has been delivering nuclear energy for medical use successfully, besides other applications for many years, whilst receiving worldwide acclaim in many cases for its products! [Interjections.]

 

 

Mr M WATERS: Chairperson, on a point of order: The speaker has just accused hon Van Dalen of shooting people, which has not been proved in a court of law. It is hearsay; she is casting aspersions on the character of the member and should withdraw those comments, or she must bring a substantive motion if she wants. [Interjections.]

 

 

The ACTING CHAIRPERSON (Ms L M Maseko): Hon Mahambehlala, that is really casting aspersions.

 

Ms T MAHAMBEHLALA: No, it is a fact. A police officer was suspended after that. It is a fact. They know it is a fact. I am not going to withdraw it, Chairperson. [Interjections.] It is not aspersions being cast on anybody. [Interjections.]

Mr M WATERS: Chairperson, it is not a fact at all.

 

 

Ms T MAHAMBEHLALA: An officer, with him present, shot at kids playing soccer.

 

 

Mr T J BRAUTESETH: You‘re a racist! Leave the House!

Ms T MAHAMBEHLALA: Thank you very much for that compliment. Chairperson, let‘s look at facts about the ?Holy Land?. The court found a R113,5 million tender to JK Structures was done to protect the company, as it is linked to the DA, without following proper processes. [Interjections.]

 

 

The ACTING CHAIRPERSON (Ms L M Maseko): Hon Mahambehlala! Please withdraw that.

 

Ms T MAHAMBEHLALA: Chair, as a disciplined cadre of the ANC, although I still believe in the facts, I withdraw it because I respect you. [Interjections.]

 

 

Mr M WATERS: Chairperson, it must be an unconditional withdrawal, not because she wants to and she still believes in the facts. No, but it was conditional. [Interjections.]

The ACTING CHAIRPERSON (Ms L M Maseko): No, there is no condition. [Interjections.]

 

 

Mr M WATERS: Yes, there was.

 

 

The ACTING CHAIRPERSON (Ms L M Maseko): There is no condition.

 

 

 

Mr M WATERS: It clearly was conditional.

 

 

The ACTING CHAIRPERSON (Ms L M Maseko): Hon members, she said

 

?as a disciplined cadre?.

 

 

 

Mr M WATERS: And ?I still believe in the facts?.

 

 

 

The ACTING CHAIRPERSON (Ms L M Maseko): She has withdrawn. Please continue, hon Mahambehlala.

 

 

Ms V VAN DYK: Chairperson, on a point of order: How can a person say, ?I still believe in the facts? at the end of the withdrawal, and it‘s not conditional? Then, every time we withdraw, we will say ?but it is the truth?. [Interjections.] The President steals, and it is the truth. I withdraw. [Interjections.]

The ACTING CHAIRPERSON (Ms L M Maseko): Hon Mahambehlala, what did you say? [Interjections.]

 

 

Ms T MAHAMBEHLALA: Chair, ?As a disciplined cadre of the ANC, I withdraw? – that is what I said. Is that what you wanted to hear? You got it right now. Thank you.

 

The ?Holy Land?, Chair, I was still there. [Interjections.] The City of Cape Town municipality overshot the fixed tender prices of the new soccer stadium, as well as the bus route to Blouberg by R5 billion, and they were found guilty by the Competition Commission after this had happened – R5 billion, and they come here wanting to be holy people when our people are suffering.

You are here to advance the interests of the imperialists, as mandated by the Stellenbosch mafia, Rupert being one of the many. [Interjections.] So, you don‘t come here and pretend to be holy when you are not holy.

 

 

To the NFP, the PAC, and the rest who spoke here, I invite you to our committee meetings so that you do not come here and talk about gossip and rhetoric next time. Everything you said is rhetoric and gossip. We are not going to entertain your rhetoric and baseless yada yada because we don‘t have time for it.

Chairperson, as I conclude, we, the ANC, support this budget because it is our sole mandate to better the lives of our people and South Africans at large. Without supporting this budget, I do not know what you can sit here and promise to deliver to South Africans: With what? How? When? You are just sitting here supporting the budget of Tourism because that is where you are looting the most. You are supporting the budget of ... that is where you have actually amassed all the wealth of this country since before 1994, as you were looting. You are still looting. [Interjections.] [Applause.]

 

 

The MINISTER OF ENERGY (Ms T M Joemat-Pettersson): Hon House Chairperson, the Director—General of the National Atomic Energy Agency, Director-General Amano, is visiting Cape Town at the moment for the International Radiation Protection Congress, which is being held in Africa for the first time, attended by 900 nuclear specialists.

 

 

He has visited various nuclear facilities in South Africa and will deliver key note address in North West University. He has expressed both praise and support for South Africa‘s leadership on nuclear matters in Africa. In this regard, South Africa has agreed that it will be the centre for development for cancer control or isotopes in the continent. The role of South Africa

will be a hub for the training of nuclear scientist in Africa and the rest of the world.

 

 

We will have the placement of people from the rest of the world in South Africa, despite the oppositions called for corruption, corruption. Why black people are corrupt. Black people are so corrupters. Black people are monkeys, and therefore, this is corruption.

 

Now, sanity prevails in Algeria. Algeria will have 2 400 megawatts of nuclear energy by 2030, which is two reactors by 2030. Egypt will have 4 800 megawatts by 2030, four reactors in Algeria and four in Egypt. Ghana will have 1 000 megawatts by 2025, which is one reactor. Kenya will have 4 000 megawatts of nuclear energy by 2033, which is four reactors. Nigeria will have 4 000 megawatts by 2017, which is four reactors. Morocco plans to have one reactor by 2030.

 

 

My young people, hon members, by 2030, 18 000 megawatts of nuclear energy would have been both in Africa. South Africa will no longer be the leading country on nuclear because of the opposition.

Now, we are the leader on radioisotopes, which is for cancer research. Even this information will be handed to the rest of the world and South Africa will no longer be the leader on radioisotopes. The iThemba lab, which is the National Research Foundation, NRF, has real re-entrenched the capabilities of South Africa in this regard.

 

 

South Africa will lose this advantage again by 2030. Despite all these loss which we will have, South Africa will continue helping the rest of the continent, even if they advance beyond us. Why will we do this? Public acceptance is very important in this programme. When there is any perception that there is corruption around money, we will take one step back. We will be delaying our process because of public acceptance.

 

The hon member Mackay asks why we had not meet March 2016 deadline. It is precisely so that we can consider all the fundamental concerns of the court, which is about the Igas. If we need to re-table the Igas, we will certainly do so. If we want to re-do any processes, we will certainly do so. We have investigated. We will continue investigating any concern over corruption.

If there is any corruption in my department or my State-owned Enterprises, SOEs, please do not hesitate to alert me to this. And this applies to the Members of the ANC as well.

 

The nuclear application – our concern is about safety, security and safeguarding our focus in priority areas. And that is why the President has employed us to look at the price, the pace and the scale of nuclear energy as the price is being considered in South Africa. That money will go to the sixth African countries, not from South Africa, but the money will be used in those countries to develop nuclear energy whilst we will be pontificating about corruption.

 

 

So please, let Africa go ahead, and let South Africa, which does not believe it is part of Africa. Let South Africa fall behind. This is what my young sons are concerned about. My young sons are concern about the liable statements people make when they say, whatever they like about our President, when they say whatever they like about black people without consequences, when they call us fleas without consequences and without withdrawing their statements, when they call us rapist without consequences, when they say all black men are rapist without consequences.

Then my sons have the fear that one day there will be black so- called rapist. When your constituency call us monkeys, then my

sons are concern they will grow up as black South Africans being called monkeys.

 

 

We are being insulted. We are being expected to rise above the occasion. Yes, we will talk unity. We will talk unity in this House. As the Minister, we will rise above the occasions of you insulting us. Your insult however ...

 

 

The HOUSE CHAIRPERSON (Ms L Maseko): Order!

 

 

The MINISTER OF ENERGY (Ms T M Joemat-Pettersson): ... are painful. This is what we fought for. We fought for a better life for all our people. We fought for building a better South Africa. We fought for this ANC government. We fought for moving South Africa forward. This ANC government fought for reconciliation even when you insult us. But your insults are too much. Quite soon, your bone of contention; your insults will lead to something which you are not prepared for.

 

 

As the hon Mackay knows, we will respect any legal processes and the judgements and we are considering and co-operating fully with the court. And really, what does the hon DA know about the poor and the working class? Why are you preaching to us about the poor and the working class? When did you suddenly become

another class consciousness? There is no evidence. There is absolutely no evidence that the Nuclear Renewable Programme will cost us R1 trillion. Where did you get these figures from? This is a statement of your imagination.

 

 

We are fully committed to renewable energy. Why do we make renewable energy your programme? Renewable energy, solar energy and wind energy, is a construct of the ANC government. The DA government please, renewable energy is not a programme of the DA in the Western Cape. It is our programme. We initiated renewable energy; we re-initiated solar energy and wind energy. We initiated the Independent Power Producers, IPPs. We develop relationships with the private sector. We develop great relationship. We develop the Independent Power Producer, IPP, office because black people develop an Independent Power Producer Programme, develop by black people.

 

 

You have a problem. [Interjections.] Yes, they are our commanders. [Interjections.] At least you can complement black people for developing a programme which can work with the private sector even in the Western Cape.

 

So, why do you make us the architects of owning nuclear energy? You speak for your entire speech on nuclear energy with the rest

of Africa - is considering nuclear energy. Why are you saying that as Africa as a continent, we cannot do nuclear energy? We have already done Koeberg very successfully.

 

In Britain, the British negotiated nuclear energy. Within three months, the Egyptians negotiated nuclear energy, but just because it was the British, we negotiated with the Chinese, it wasn‘t corrupt. In China, they negotiated with the Chinese. The British have an intergovernmental agreement, government to government relationship. So, because when we want the government to government agreement, it is corrupt. [Interjections.]

 

 

So, we are what is a independent, what is a request for proposals. A request for proposal is the same as the IPPs. It‘s exactly the same. The IPP office well manage the nuclear programme. So, it‘s okay for the IPP office to manage renewable energy, which is solar and wind. When the IPP office manages solar and wind energy, then they are not corrupt. But suddenly, when the IPP office manages nuclear energy, they are corrupt and there is no transparency. Really now, are the two different IPP offices. Is there an IPP office for renewable energy, and is there an IPP office for nuclear energy? They are extremely interesting.

The gas programme will be run by the IPP office. Now, does this make the gas programme corrupt? Nobody has alluded to any form of corruption in the gas programme. Project Energy Efficiency and Renewable Energy, EERE, had to be absolutely abandoned because exactly as you said there was no due diligence done. And when we did that due diligence, we found that it was just too expensive.

 

 

So, we are saying everything we do has to be affordable, has to make business sense and has to be transparent. And this is why we have not issued the request for proposal, hon Mackay, because what the entire documents is about volumes of documents.

 

As the hon member said, five different processes before you get to the end result, five different processes before you get to the decision. I thank you members for always participating. I thank you, Chairperson for always giving me very good advice.

 

 

Ke a leboga ... [Thank you ...]

 

 

 

... to all members, particularly, the Ministers and Deputy Ministers.

 

Enkosi kakhulu ... [Thank you very much ...]

... hon members Mackay and van Dalen. I always appreciate your vibrant contributions. And I do listen to you, Thank you. [Applause.]

 

The HOUSE CHAIRPERSON (Ms L Maseko): Order! Hon members, I reminded that the debate in Small Business Budget Vote will take place at 16:15 at the National Assembly Chamber right here. And the Debate on Women Budget Vote will take place at 16:15 at the Old Assembly Chamber.

Debate concluded.

 

 

 

The Committee rose at 15:59.

 

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