Eskom’s problems are the result of a dangerous scheme to systematically milk the parastatal dry for the benefit of the few greedy individual capitalists…writes Dibanto Magubane
Let's unpack this as it seems there's some confusion when China is investing. Indeed there were trade agreements facilitated by former President Jacob Zuma during his presidency but they weren't loans for Eskom.
There were renewable power projects during Zuma's presidency but they weren't planned for this large scale because Eskom didn't need them in this huge scale, it was just few pilot projects but capitalists saw an opportunity to enrich themselves. Eskom was committed into the more reliable nuclear energy.
Now this where the problem started. Renewable energy contract is an agreement or a tender between the Department of Energy (DoE) and Independent Power Producers (IPPs). The tendering process and price agreements are facilitated or adjudicated by DoE, then Eskom is only instructed to sign Power Purchase Agreements (PPAs) with the IPPs, who are totally no part of the process but are basically forced into power purchase agreements facilitated by the DoE.
Let's now go back; Tina Joemat-Peterson was the minister of energy at the time, most of these IPPs were facilitated by her. Brian Molefe and Matshela Koko were still at Eskom, together with the then Eskom board chaired by Dr Ben Ngubane, they saw this looting scheme from far and refused to sign the PPAs for over a period of 3 years.
Chain of events
In March 2017, Tina Joemat-Peterson was reshuffled by Jacob Zuma and replaced by Mmamoloko Kubayi who then requested renegotiations in order to take Eskom into consideration, citing the high costs of electricity Eskom didn't need because of surplus electricity Eskom already had. But then Eskom was threatened with lawsuits by the IPPs because they already had contracts with the DoE...Eskom had to just come to the party.
This is the time when Pravin was also fired as Minister of Finance and Brian Molefe and Eskom board were under attack by the Media based on unproven allegations by former controversial Public Protector Thuli Madonsela.