The uMkhonto weSizwe Party (MK Party) is calling for an inquiry into the awarding of a multi-billion-rand energy tender to Mulilo Energy, a company chaired by former Eskom Chief Operating Officer Jan Oberholzer.

Last week, Electricity and Energy Minister Dr. Kgosientsho Ramokgopa announced the appointment of five preferred bidders under the Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP). Four of the five projects were awarded to Mulilo Energy.

The government hopes the selected bidders, including Mulilo, will invest R9.5 billion to boost grid capacity and alleviate South Africa’s ongoing energy crisis.

Prince Adil Nchabeleng, an MK Party member of the Parliamentary Portfolio Committee on Electricity and Energy, says the party had written to the minister demanding full disclosure within seven days.

Nchabeleng says, “We are currently questioning the validity in terms of the selection of the company that was awarded this particular contract and as to what was the reasoning and the merits behind the awarding. Because there were about 26 other companies that had bid for this particular contract.

“So the questions are pertaining to the issues around the selection and the merits around the selection and the fact that there was no public transparency whatsoever in respect to the selection of the current awarded companies,” notes Nchabeleng.

In 2020, the Department of Mineral Resources and Energy set a target to secure 28GW of new electricity generation capacity through its IPPPP programme. Since then, eight bid windows have been released, including those for risk mitigation, renewable energy, battery energy storage, and gas to power projects.