Motsepe denies benefitting from IPP contract
The founder and chairperson of African Rainbow Energy and Power (AREP), Patrice Motsepe, has dismissed claims that the organisation stands to benefit from government's proposed independent power producers' contract.
Motsepe is the brother-in-law of President Cyril Ramaphosa and Minister of Energy Jeff Radebe.
The billionaire businessman addressed the media in Sandton following allegations that the IPP program was meant to benefit members of President Ramaphosa's family.
He says a few week after Radebe's appointment as energy minister, AREP moved to strengthen its governance and ethical procedures.
The company's CEO Brian Dames joined Motsepe at the press conference and said AREP stake in the equity of the energy department’s renewable energy independent power producer program is less than 10%.
“The total BEE equity value for all projects under the Department of Energy is R8.6 billion and the reps share is R800 million, which is less than 10%.”
Motsepe believes the allegations of improper benefit is par for the course during an election year.
"Politicians are doing what all politicians are supposed to do, it is elections. They are supposed to dig and grow and try and get connections, whether the connection works or not.”
Motsepe also said that he is not in favour of the privatisation of Eskom, as it has a developmental role to play.
“We cannot do it in the private sector... our main concern is profitability it has to be, our main concern is how much money we can make for our shareholders."
He says Eskom, under the control of the state, need to ensure the poor receive reliable and affordable electricity.