Radebe denies allegations he favoured AREP in IPP contracts

Energy Minister Jeff Radebe has denied allegations that he favoured his brother-in-law, South African billionaire and Chairperson of African Rainbow Energy and Power (AREP) Patrice Motsepe, in the awarding of Independent Power Producer contracts.

Radebe says he has no conflict of interest in the matter as his predecessor Tina Joemat-Pettersson had approved the IPPs and he had overseen the execution of the project.

According to Motsepe, AREP’s share in the Energy Department’s Renewable Energy Independent Power Producer Procurement (Reippp) amounts to less than 10% or R800 million.

President Cyril Ramaphosa, who is also Motsepe’s brother-in-law, appointed Radebe as political head of the department in 2018.

Radebe was responding to questions on the sidelines of the Energy Indaba in Sandton, north of Johannesburg.

“I have no conflict of interest. The issues of IPPs, there is a competitive, transparent bidding process that is coordinated by the IPP office, that reports to Energy, as well as to the National Treasury. All those projects were in fact approved way back in 2015 by Former Minister Tina Joemat-Pettersson. What I did was to ensure that we execute these to bring in R56 million in to the South African economy; to bring about policy certainty … that this is the policy of the ANC government. ”