South Africa’s murky nuclear deal and the country’s financial mess

SA heads for financial armageddon, Fin 24 2017-02-26 06:02 – Justin Brown State finances face stormy times as the private sector braces itself for a possible switch in finance ministers amid spluttering tax collections, low growth, tax hikes and deep suspicion regarding the nuclear build.
South Africa’s top nuclear adviser has gone to ground. Was he fired?

LOOKING FOR MR. NUCLEAR, The amaBhungane Centre for Investigative Journalism , 28 Feb 17 Senti Thobejane, President Jacob Zuma’s former point man on South Africa’s proposed R1 trillion nuclear deal, appears to have gone to ground since his sudden departure as energy adviser in late 2015.
Back then he was riding high.
He was not only advisor to Minister of Energy Tina Joemat-Pettersson, but had outlasted her two predecessors, Dipuo Peters and Ben Martins, reportedly because of his status as Zuma’s personal go-to-guy on the nuclear project.
- Watch the video explainer here
One senior Department Of Energy (DoE) official told amaBhungane that he was known in the Department of Energy as “Mr Nuclear”.
Then, on September 15, 2015, Business Day reported that Thobejane had been fired. There was never any explanation or comment from Joemat-Pettersson or the DoE; he simply dropped out of sight.
Not long afterwards, amaBhungane received a tipoff from a highly placed source who had worked with Thobejane at the DoE.
According to the source, Thobejane had been fired after his behaviour in the murky discussions around a nuclear deal had riled senior officials, including the president.
The claim was potentially defamatory and based on insider gossip that was almost impossible to verify.
It went something like this:
Thobejane had travelled to Russia at the same time as Zuma’s mysterious “medical visit” in August 2014.
During that trip an understanding was reached with unidentified Russians which, claimed the source, included the payment of some kind of commission……….http://amabhungane.co.za/article/2017-02-22-exclusive-looking-for-mr-nuclear.
Nigerian Nuclear Regulatory Authority (NNRA) reviewing s afety regulatgions to “accomodate” nuclear power industry
FG’s guidance on licensing process for nuclear power plants set – D-G NNRA , Vanguard, FEBRUARY 28, 2017 Abuja – The Nigerian Nuclear Regulatory Authority (NNRA) said it was reviewing the Nuclear Safety, Security and Safeguards (NSSS) Bill regulations to accommodate the operation of Nuclear Power Programme (NPP) in the country. Prof. Lawrence Dim, the Director-General of the authority said this on Tuesday in an interview in Abuja.
Nigeria in debt to International Atomic Energy Agency, and can’t afford to run nuclear power safely
Indebtedness, a stumbling block to Nigeria’s nuclear sector progress- NNRA DG http://tribuneonlineng.com/indebtedness-stumbling-block-nigerias-nuclear-sector-progress-nnra-dg/ THE Nigerian Nuclear Regulatory Authority (NNRA) has appealed to the Federal Government to ensure the payment of its indebtedness to the International Atomic Energy Agency (IAEA), lamenting that the debt has been a stumbling block to the progress of nuclear sector in Nigeria.
The Director-General/Chief Executive Officer (DG/CEO) of the authority, Professor Lawrence Dim, who made this appeal in a signed statement made available to the Nigerian Tribune in Abuja, on Sunday, further urged the government to ensure that Nigeria paid up all her access contribution fees to the IAEA to enable the NNRA made meaningful contributions in the society.
He also implored the government to improve the funding of the NNRA, as nuclear power programme required long term commitment, pointing out that the authority has lived up to its mandate by continuously ensuring the protection of life, health, as well as property and the environment.
Professor Dim observed that there was the need for the institutionalisation of the Nuclear Safety Security and Safeguards Bill through an act of the National Assembly in order to domesticate the nation’s international obligations.
The DG, who admitted that there was inadequate information on the beneficial uses of ionizing radiation, said these were parts of recommendations after the 4th National Workshop organised by the NNRA in Abuja for Editors and Correspondents.
According to him, government at all levels should ensure that all facilities that ought to be under regulatory control of the NNRA are indeed regulated by the NNRA. Not all the facilities that should be under regulatory control of the NNRA are indeed regulated by the Authority.
“There is generally a low level of awareness with respect to the nuclear sector. The Nuclear Safety, Security and Safeguards Document (Bill) is yet to be passed into law by the National Assembly. There should be more information dissemination on the nuclear sector in order to enlighten the public.
“Government should embark on an intensive manpower development to achieve the critical mass of professionals for the development of the nuclear sector. The NNRA should collaborate with the relevant agencies on grassroots sensitization”, he added.
Other Management Staff present at the workshop included Director, Radiological Safety, Professor T. C. Akpa; Director, Authorization and Enforcement, Dr. Yau Idris; as well as Deputy Director, Nuclear Safety, Physical Security and Safeguards , Dr. Nasiru Bello and the Head of Information and Protocol Unit, Mrs. Ekaette Ebong Bassey.
Court case to save South Africa from nuclear-industry caused bankruptcy

Nuclear Deal: Case to stop SA from bankrupting itself begins https://www.dailymaverick.co.za/article/2017-02-22-nuclear-deal-case-to-stop-sa-from-bankrupting-itself-begins/#.WK9qo9KGPGg REBECCA DAVIS SOUTH AFRICA 22 FEB 2017
South Africa’s Minister of Finance silent about nuclear energy
Why Gordhan’s silence on nuclear was golden’ The Minister effectively signaled that there is no need to react to exaggerated energy crisis talk coming from the pro-nuclear lobby’ Business Day, 24 FEBRUARY 2017 – 08:50 AM HARTMUT WINKLER South Africa’s Minister of Finance, Pravin Gordhan said very little about the energy sector in his recent budget speech. The word “energy” came up only once compared with 2016, when it was used five times. Even more notable is that he didn’t mention nuclear energy – a source of major contention – at all.
The explicit statements relating to energy were restricted to an increase in the fuel levy and affirmation that the independent power producer programme would continue with the development of further renewable and gas power generation.
This avoidance might at first glance seem odd given the heated controversies around power shortages as well as the government’s plans to invest in unaffordable nuclear power plants.
But there’s a great deal to take heart from. By downplaying the energy sector in his speech, the Minister effectively signaled that there is no need to react to exaggerated energy crisis talk coming from the pro-nuclear lobby. Instead, he is showing faith in the existing modest medium term energy budget, and an unwillingness to be diverted onto a reckless financial course…….
The significance of the Minister’s silence
Gordhan’s budget signalled that he is intent on standing firm against any political pressure by refusing to significantly deviate from the National Treasury’s long term expenditure plan.
Contrary to what his detractors would have hoped for, he did not make appreciably higher allocations to the nuclear sector. Instead he:
– Committed to the continuation of the independent power producer driven renewable energy programme. This has been opposed by the pro-nuclear Eskom;…….
Gordhan went on to say: “By acting now to stabilise debt … future generations will not pay … 20 or 30 years from now.”
This affirms the frequently stated view that the decision to embark on a massive nuclear build could only be financed through astronomical loans that will severely burden the nation for decades.
Gordhan has stood firm. But one question remains: will his stand lead to his dismissal and replacement with a stooge leading inevitably to a crash of the country’s currency, open warfare inside the ruling party and public protest? https://www.businesslive.co.za/rdm/politics/2017-02-24-why-gordhans-silence-on-nuclear-was-golden/
Court battle over South African government’s hugely expensive secret nuclear deal with Russia

Antinuclear lobby groups say government’s secrecy is embarrassing
Two groups are asking the high court to declare the alleged nuclear deal with Russia‚ signed by Energy Minister Tina Joemat-Pettersson‚ unlawful, Business Live 22 FEBRUARY 2017 The court battle between lobby groups and the government over the alleged R1-trillion proposed nuclear deal with Russia — ostensibly the biggest procurement by the government to date — resumed in Cape Town on Wednesday.
Earthlife Africa Johannesburg and the Southern African Faith Communities’ Environment Institute (Safcei) have taken the Department of Energy to court for procuring this arrangement under a veil of secrecy.
They have asked the court to declare the deal‚ signed by Energy Minister Tina Joemat-Pettersson‚ unlawful and unconstitutional.
Spokesperson for Earthlife Makoma Lekalakala said it was “embarrassing” that they had to turn to the courts because the government refused to divulge details of the deal, which was of great public interest.
“We wondered why the government wanted to build nuclear plants especially after what happened in Hiroshima. Nuclear is also very costly so this deal is on the brink of bankrupting the country‚” Lekalakala said…… Finance Minister Pravin Gordhan made no mention of the deal in his budget speech.https://www.businesslive.co.za/bd/national/2017-02-22-antinuclear-lobby-groups-say-governments-secrecy-is-embarrassing/
Archbishop in South Africa calls for scrapping of nuclear energy, expansion of renewables

S. African bishop says government should scrap nuclear power; expand renewable energy sources, Ecumenical News, 23 Feb 17 The Anglican Archbishop of Cape Town, Thabo Makgoba, has appealed to the South African government to scrap plans for developing nuclear energy and instead spend the money on education, training and other development initiatives.The archbishop said in a statement issued from the church’s Synod of Bishops Feb. 22 coming at a time that faith and environmental groups are issuing a court challenge to a secret nuclear deal the government has struck up with Russia.
“The Synod of Bishops has revisited the resolution adopted by the church’s Provincial Synod last September, in which the church expressed its opposition to the expansion of nuclear energy and urged the government to pursue the path of renewable energy initiatives……
“We are deeply concerned that an expanded nuclear energy program will become an albatross around the necks of our children. And we cannot leave to the generations to come the task of disposing of our nuclear waste.”
Makgoba said the bishops believe South Africa has the potential of becoming a renewable energy hub for Africa, with huge potential for investment in manufacturing and associated employment.
“We note that overseas investors are queuing up to invest in our renewable energy program and since the design of the program is such that they provide the finance, this does not burden our people.”
ENVIRONMENT JUSTICE GROUPS
Environmental justice groups have renewed a challenge to the government’s planned expansion of nuclear energy in a court hearing in currently Cape Town.
In November the Southern African Faith Communities’ Environment Institute said a closed meeting on a nuclear build plan reinforces the perception that government has something to hide……http://www.ecumenicalnews.com/article/s-african-archbishop-says-government-should-scrap-nuclear-power-expand-renewable-energy-sources/59172.htm
Civil society organisations call on President Jacob Zuma to scrap South Africa nuclear deal
Calls to scrap nuclear deal during #SONA2017, SONA / 9 February 2017, SAMKELO MTSHALI, Durban – Civil society organisations and other critics of government’s proposed multibillion-rand nuclear plan called on President Jacob Zuma to scrap it during his State of the Nation address tonight.
The South Durban Community Environmental Alliance (SDCEA) picketed outside City Hall on Wednesday and handed over a memorandum to the eThekwini Municipality, detailing their opposition to the nuclear plan.
Today in Cape Town the Right2Know Campaign is expected to add its voice to growing criticism of plans to build nuclear power stations in South Africa. Desmond D’Sa, SDCEA chairperson, said the deal had been shrouded in secrecy and accused the government of not consulting with communities.
“Ultimately it’s the poor and working class of this country who will have added pressure to pay for these nuclear power stations that cost so much money. “This money should instead be used for better access to healthcare facilities, education and other basic necessities,” D’Sa said.
He pointed out that a single nuclear powered plant would take close to a decade to build. With government planning on building six to eight, it would take about 30 to 40 years before all were completed. “If you take half the money of the nuclear deal, R500billion, and invest it in setting up companies in renewable energy projects , you could create over a million jobs ,” said D’Sa.
He said setting up these companies in townships such as uMlazi, KwaMashu, Soweto, Alexandra, Gugulethu and Langa would go a long way in addressing the high rate of unemployment, which stands at 26.6%.
He said this was the route countries like India, the US and China had followed.
“Nuclear energy is harmful……..
Carina Conradie, of the Right2Know Campaign, said they were concerned about the affordability of the nuclear deal because nuclear energy was one of the most expensive forms of energy. “Wind and solar energy are much better and cost-effective alternatives to nuclear energy,” she said.
Questioning the legitimacy of the deal, Conradie said: “There have been reports of secret deals with Russia and even the procurement process was not above board; it was shrouded in secrecy.”
She said they had strategically planned their demonstrations around Sona 2017 because it was important the issue remained at the forefront of the public’s thoughts and on the tip of their tongues.
This would ensure there was growing opposition to the deal by educating people on its perils…….http://www.iol.co.za/news/special-features/sona/calls-to-scrap-nuclear-deal-during-sona2017-7681658
France joins the throng jostling to market nuclear power to Kenya
France joins suitors for Kenya’s nuclear plant venture, Business Daily Africa, NEVILLE OTUKI, notuki@ke.nationmedia.com February 7 2017 IN SUMMARY French Economy and Finance minister Michel Sapin said the nuclear-rich European country was looking to offer Kenya technical, engineering and financial support to develop reactors.
Kenya plans to start building its first nuclear plant from 2022 in a five-year period at a cost of about Sh500 billion
China, Russia, South Korea and Slovakia have since inked various pacts with Kenya in manpower development and skills exchange as they eye a possible deal.
France has joined the list of countries courting Kenya for a multi-billion-dollar deal to build East Africa’s first nuclear power plant.
French Economy and Finance minister Michel Sapin said the nuclear-rich European country was looking to offer Kenya technical, engineering and financial support to develop reactors.
Kenya plans to start building its first nuclear plant from 2022 in a five-year period at a cost of about Sh500 billion.
China, Russia, South Korea and Slovakia have since inked various pacts with Kenya in manpower development and skills exchange as they eye a possible deal.
“We have expressed our readiness to support the construction of the plants. Our support involves everything from expertise to funding,” Mr Sapin said on Sunday after concluding his two-day visit to Kenya during which he presided over the return of Peugeot assembly to Kenya…….
Mr Sapin said that France was seeking pacts with Nairobi like the ones it entered with South Africa on nuclear power development.
France has over the years signed several pacts with South Africa whose two power plants were built by French firm Areva.
South Africa plans to add more nuclear power plants.
Energy experts from Italy and Germany last October, however, advised Kenya to drop plans to build nuclear reactors and instead harness its vast renewable energy resources for power generation. The experts, attending a renewable energy conference in Nairobi, reckoned that Kenya is better off developing more geothermal wells, solar parks and wind farms.
They cited massive costs for a nuke plant, long construction periods of about 10 years and expensive decommissioning of plants at the end of their lifespan, especially disposing of hazardous radioactive waste.
Italy shut down its last nuke plant in 1990 and the people voted against the atomic technology in a 2011 referendum. Germany plans to pull nuclear plants off its power grid by 2022 in favour of green energy. http://www.businessdailyafrica.com/France-joins-suitors-for-Kenya-s-nuclear-plant-venture/539546-3802926-item-1-119w5bk/index.html
Only government-owned nuclear companies have responded to Eskom on nuclear marketing

Strong response on Nuclear – Eskom , AFRICAN NEWS AGENCY 1 February 2017 Johannesburg – Eskom said on Wednesday that it was receiving positive response from the market to the Request for Information (RFI) issued in relation to the proposed South African Nuclear New Build Programme.
Russia keen to market nuclear power to South Africa
Russia’s Rosatom submits bid for South African nuclear project – TASS, Reuters Jan 24 Russian state nuclear agency Rosatom has submitted a bid for a nuclear power project in South Africa, TASS news agency cited the company’s General Director Alexei Likhachev as saying on Tuesday.
Rosatom had been considered the leading candidate for a tender to build 9.6 gigawatts of nuclear power capacity in South Africa by 2030, but South African nuclear state agency Necsa said last year it was no longer “the frontrunner”. (Reporting by Alexander Winning; Writing by Jack Stubbs) http://www.reuters.com/article/russia-safrica-nuclear-idUSR4N1F7023
South Africa’s Energy Minister Tina Joemat-Pettersson ordered to pay punitive costs in nuclear case
South Africa: Court Orders Punitive Costs Against Minister in Nuclear Case http://allafrica.com/stories/201612150392.html By Ashleigh Furlong, 14 Dec 16 Minutes before hearing, ministry reveals new determination on nuclear energy
The Minister of Energy Tina Joemat-Pettersson has been ordered by the Western Cape High Court to pay punitive costs including the costs of four counsel for Earthlife Africa and the Southern African Faith Communities Environment Institute (SAFCEI) after the state brought forward new evidence minutes before the case was set to begin.
A court orders punitive costs usually when it is dissatisfied with the conduct of a litigant. This is rare and is considered a strong rebuke.
The respondents in the case are the Minister of Energy, the president, the National Energy Regulator of South Africa (NERSA) as well as two representatives from Parliament.
Yesterday, the case began with a postponement until February 2017, as it was revealed mere minutes before the hearing was to begin that the Minister had made a new nuclear energy determination – replacing a decision that was gazetted last December.
Part of the relief sought by Earthlife and SAFCEI was for the old decision to be declared invalid. They also want the court to declare invalid the agreement between South Africa and Russia, as well as the tabling in Parliament of the deals with the USA and Korea.
The new decision now states that Eskom, not the Department of Energy – as was the case in the old determination – will be the procurement agency for 9,600 megawatts of nuclear energy.
“Despite it being signed on 5 December 2016, the Court was not informed thereof and neither were the applicants – until literally minutes before the hearing was to begin. The Court stressed in its judgment that there was no evidence presented to the court explaining how this determination came about, when it was decided upon and the processes leading thereto, despite the Determination apparently having been made more than a week before the hearing,” says a statement issued by Earthlife and SAFCEI.
The South African Renewable Energy Council (SAREC) has also expressed concern over the new determination, saying that it was “seemingly rushed through” on the basis of “the very outdated Integrated Resource Plan published in 2010”.
“We are further disheartened by Eskom’s Acting CEO’s simultaneous announcement that the utility will release a nuclear Request for Proposals as soon as the determination is gazetted,” says Brenda Martin, Chair of SAREC in the statement.
“SAREC believes that this irrational behaviour fans the flames of suspicion as to the real motives behind the nuclear campaign. Facts, logic and basic financial prudence simply do not support this determination,” says the statement.
Earthlife and SAFCEI wanted the request for proposals to be halted until the court case was finalised. However, the court ruled that Eskom was allowed to go ahead with the process.
Another delay in South Africa’s troubled move towards new nuclear reactors
Nuclear RFI delayed once again Release postponed ‘to brief minister’. Money Web , Antoinette Slabbert / 15 December 2016 Moneyweb has just learnt that Eskom will not release the highly-anticipated nuclear Request for Information (RFI) on Thursday, despite widely-published undertakings by its acting CEO Matshela Koko to that effect.
According to South African Nuclear Energy Corporation (Necsa) chair Dr Kelvin Kemm, the documents were signed off by him and Eskom chair Dr Ben Ngubane on Thursday morning and were ready for release. A further cooperation agreement between Eskom and Necsa was also signed.
Eskom and Necsa have been tasked by government to jointly manage the procurement of the country’s 9 600 MW new nuclear build programme.
Kemm said Eskom’s shareholder representative, public enterprise minister Lynne Brown, however requested a personal briefing on the matter, since she has not been closely involved in the nuclear procurement planning……http://www.moneyweb.co.za/news/industry/breaking-nuclear-rfi-delayed-once-again/
Earthlife Africa takes legal action to stop South Africa’s nuclear power plan
Earthlife Africa goes to court to halt SA’s bid for nuclear power http://www.heraldlive.co.za/news/2016/12/13/earthlife-africa-goes-court-halt-sas-bid-nuclear-power/
In a David versus Goliath battle which could determine the country’s energy future‚ an NGO will be in the Cape Town High Court on Tuesday to try halt government’s nuclear procurement deal.
In an affidavit submitted to the court‚ Earthlife Africa argues that government’s agreement with Russia to supply South Africa with multiple nuclear power plants is both unlawful and unconstitutional.
The procurement deal would be the largest in the country’s history at an estimated R1-trillion‚ and would see the building of a “nuclear fleet” that would generate nearly 10GW of power.
In September 2014‚ Energy Minister Tina Joemat-Pettersson signed an agreement with Russia on strategic partnership and cooperation in the fields of nuclear power and industry‚ which was then authorised by President Jacob Zuma.
The agreement was tabled before Parliament in June 2015.
In the affidavit‚ Earthlife branch coordinator Phillipine Lekalakala stated that the deal was unlawful‚ and should be reviewed and set aside. “The decision to proceed with procuring these nuclear power plants… has occurred without any of the necessary statutory and constitutional decisions having been lawfully taken‚” said Lekalakala.
“The minister and the National Energy Regulator of SA were obligated to have determined that new generation capacity is required and that the electricity must be generated from nuclear power in terms of the Energy Regulations Act (ERA).”
“No ERA requirement decision or ERA nuclear procurement system decision has been taken.”
The state opposed the application saying that the nuclear programme was a policy direction adopted by government to establish a self-sufficient nuclear industry for the industrialisation and development of the country.
The deputy director-general of the Department of Energy‚ Zizamele Mbambo‚ said that‚ as part of the nuclear programme‚ the energy and electricity needs of the country would be provided for.
“This policy direction allows the country to discharge its international obligation to reduce CO2 emissions from our historical fleet of coal-driven power stations‚” Mbambo said.
Earthlife and co-applicants in the matter‚ Southern African Faith Ministries’ Environment Institute‚ will be holding a demonstration outside the court on Tuesday. – TMG Digital/The Times
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