South Africans have maintained their disapproval of the controversial Nuclear deal and the roles Eskom had to play in the deal.
Sean Mfundza muller, a senior lecturer in in Economics, University of Johannesburg, warns Brian Molefe to keep off the deal.
The Nuclear deal which was meant to further improve electricity supply in the country has been blatantly spoken against by citizens who believe this would incur more economic challenges for the country.
Nevertheless, the Eskom boss, Brian Molefe has maintained that the state power utility will fund the proposed deal in order to allay fear of its impact on the state economy.
Speaking on this, Sean Mfundza muller said even if Eskom was not receiving government support, procurement of nuclear would still be a threat to the economy and an indirect threat to public finances’
“Statements that Eskom can “finance nuclear on its own”, or absorb the risks from an incorrect decision, don’t add up economically or financially, and are misleading.
“Furthermore, changes in Eskom’s rationale for justifying nuclear procurement over the last two years call into question the merits and motives of these arguments. Its claims about financing also raise serious questions about the arguments it presented to Parliament last year to justify a R23 billion cash injection and writing off a R60 billion loans.
“The right decision would be for cabinet to defer further consideration of the programme for at least two years. In addition, Eskom should account to Parliament on discrepancies in its statements about its financial situation,” he said
Aside the fact that the Eskom boss was implicated in the explosive state capture report done by former public protector Thuli Madonsela, Sean Mfundza muller said the deal had some fundamental flaws which include:
- That the actual power probably will not be needed;
- The programme is also likely to be very costly although there are still no credible, government cost estimates in the public domain;
- That the combination of insufficient demand and costly supply means that nuclear deal poses a serious threat to the future stability of the country’s public finances and economic growth
The analyst ended his statement by calling on the Eskom boss to focus more on handling the power utility and making it better for consumers instead of adding to the nation’s economic downturn.