NUM condemns R9.5 billion battery storage project awarded to former ESKOM COO, cites grave conflict of interest

The National Union of Mineworkers (NUM) today expressed its strong opposition to the awarding of a R9.5 billion battery storage project awarded to Mulilo Energy, a company chaired by former Eskom Chief Operating Officer (COO) Jan Oberholzer. The NUM views this decision as a direct and undeniable conflict of interest, bordering on white-collar corruption.

Mulilo Energy, in partnership with Scatec, has been named a preferred bidder to develop 616 MW/2,464 MWh of new battery storage capacity in the Free State. This includes four large battery storage projects awarded to Mulilo Energy.

The NUM highlights that Mr Oberholzer, during his tenure as Eskom COO, was a prominent advocate for the Renewable Energy Independent Power Producers (REIPPs) Programme. His subsequent appointment as chairperson of Mulilo Energy, as a direct beneficiary of such projects, creates an unacceptable ethical dilemma and raises serious questions about the integrity of the procurement process.

"We consider this a clear case of a revolving door, where an individual transitions from a position of immense public power and influence at a state-owned entity to a private company that directly benefits from policies and initiatives he previously championed,

This undermines the very foundations of good governance and the state's stated commitment to fighting corruption." said NUM Energy Sector Coordinator Khangela Baloyi.

The NUM further observes a troubling disparity in the national approach to corruption, noting that alleged corruption involving white individuals often goes unaddressed.

In contrast, cases involving black individuals are consistently brought to the fore. This perceived double standard erodes public trust and demands immediate attention.

The NUM calls upon the relevant decision-makers to immediately reverse this questionable award.

Furthermore, we urge all media houses to launch comprehensive investigations into potential corruption surrounding this Mulilo battery storage deal.

This investigation must thoroughly examine the bidding process, decision-making criteria, and, crucially, the ownership structure of Mulilo Energy to ensure compliance with Broad-Based Black Economic Empowerment (BBBEE) principles.

The integrity of South Africa's energy transition and the fight against corruption depend on transparent and equitable processes. The NUM will continue to monitor this situation closely and advocate for accountability.

For more detailed information, please contact:

Khangela Baloyi, NUM Energy Sector Coordinator, 072 450 6251

The National Union of Mineworkers
7 Rissik Street.
Cnr Frederick Johannesburg
Tel: 011 377 2111 Cell: 083 809 3257
Twitter: @Num_Media

Facebook: https://www.facebook.com/pages/NUM/10086002340216