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DNG Energy alleges corruption in the Tender process
- Turkey’s Karpowership emerged as the preferred bidder
- The contract is estimated at $16 billion
DNG Energy has filed a lawsuit asking to be named the preferred bidder in the contract for the supply of 1220 Mega Watts (MW) of electricity in place of Karpowership. The contract estimated to be $16 billion was awarded to the Karpowership following the completion of a bidding process. The case is to be heard in July at a Pretoria High Court.
In its lawsuit, DNG Energy alleges that the bid process was fraught with corruption, citing an alleged attempt to bribe Gwedebe Mantashe, the Minister of Mineral Resources and Energy. DNG Energy is therefore asking the Court to be named as the preferred bidder replacing Karpowership.
Responding to the allegations, Karpowership says DNG Energy ”recklessly seeks to impede an infrastructure program much needed in South Africa that is, ensuring a continuous supply of electricity”, in an affidavit cited by Bloomberg. Karpowership maintains it won the bidding process without ambiguity and says the claims of corruption in the process are unsubstantiated.
The winning bid by Karpowership was criticised following the exemption of Karpowership from fulfilling a local content requirement. Karpowership bid is also accused of not being in line with the country’s plans to transition to cleaner energy sources. The bid will see the use of fossil fuels for electricity generation for another two decades.