Polity.org.za Audio Articles

Eskom nearly lost 920 MW of power to the grid when an individual at nuclear power station Koeberg cut the wrong valve.

The incident was reported in Eskom's newsletter to employees, Shutdown Times, on Tuesday.

While carrying out required maintenance on Unit 2, someone cut the valve of Unit 1, instead of the same valve on Unit 2, the newsletter read. This "significant error" could have had "devastating consequences."

Eskom had to implement a work stoppage following the incident, which could have resulted in the loss of the running unit. Koeberg's "high safety measures" managed to identify the error in time, to prevent any damage from being caused, according to spokesperson Sikonathi Mantshantsha.

According to the newsletter, this is the second time this incident has happened during this outage.

"This speaks to very poor human performance, and it is an unacceptable practise," the newsletter read.

According to Eskom - employees are equipped with the relevant training to correctly identify the unit and components they need to work on. Eskom implored employees to use situational awareness and be vigilant when working on the units.

Eskom acknowledged that fatigue might set in, "but we cannot afford to make such serious mistakes which could have resulted in serious repercussions," the newsletter read.

Asked whether Eskom is carrying out disciplinary action against the relevant individuals, Mantshantsha said that the individuals responsible have been interviewed and have been "cautioned" by Koeberg professionals.

Mantshantsha added that the incident was not such that warranted reportage to the regulator.

Both units at Koeberg have a capacity of 920 MW and are the largest generating units in Africa.

Koeberg Unit 1 has been safely online for 141 days, without any interruptions, said Mantshantsha.

Currently, Unit 2 is offline for maintenance and refuelling. Eskom was supposed to replace the steam generators at the unit during this outage. However, due to facilities not being ready, Eskom decided to delay the steam generator replacement to the next outage. Among these facilities was the construction of a building that was not yet complete. The building is meant to store the old, radioactive steam generators after their removal.

The delay in the steam generator replacement programme will ensure Unit 2 is back up and running in time for the high peak demand winter period, Fin24 previously reported.

Eskom is in the process of extending Koeberg's operational life by another 20 years.

Despite the African Transformation Movement's (ATM's) threat to take the speaker of the National Assembly to court over her refusal to have a vote of no confidence in President Cyril Ramaphosa done by secret ballot, it's all systems go for the 30 March vote from Parliament's side.

Speaker Nosiviwe Mapisa-Nqakula informed the National Assembly Programming Committee on Thursday morning that she had received a notice of ATM's intention to challenge her decision in court, and that a preliminary date of 28 March was set – two days before the scheduled vote.

She said it was just a notice – not an actual application yet.

"As far as we're concerned, it's all systems go," she added.

This is subject to change if a court interdicts the vote from going ahead.

On the same day as the ATM's vote of no confidence, the Democratic Alliance's (DA's) motion of no confidence in the Cabinet will be heard.

Mapisa-Nqakula said she received a submission from the DA asking for an in-person vote with conscience. She said it was similar to what was raised at a previous meeting, and added that she would respond to the submission.

Meanwhile, Parliament seems happy to kick the State capture can down the road, opposition parties' objections notwithstanding.

At a previous meeting, Mapisa-Nqakula said Ramaphosa would respond to the Zondo Commission's report by 30 June with an implementation plan.

However, she has received a letter from the president, informing her of a court ruling that extended the commission's deadline to complete its work to 30 April. Ramaphosa will table his response four months after that.

Three parts of the report have already been released, and several prominent African National Congress (ANC) members have been implicated.

DA deputy chief whip Siviwe Gwarube said that in the report, there were "damning findings against Parliament" and added that nothing stopped them from setting up ad hoc committees to deal with aspects of the report.

She said the executive function – Ramaphosa tabling his response – was very different from the parliamentary function.

Mapisa-Nqakula said it was not the forum to deal with the matter. It should go to the Chief Whips Forum or Rules Committee.

ANC chief whip Pemmy Majodina said the ANC noted the outcome of the court judgment.

"We'll deal with that matter at the right forum," she said. "We must get ready when that report is presented to us [we know] what we do with it."

Gwarube added that Chief Whips' Forum was a consultative body, meeting behind closed doors, with no decision-making powers.

"I would really beg this committee to take themselves seriously," she said.

ANC MP and parliamentary counsellor to Deputy President David Mabuza, Hope Papo, said Gwarube was incorrect and that the Chief Whips' Forum helped political parties.

"This issue was sprung on us here!" he said. The matter was also discussed the previous week.

The Economic Freedom Fighters also raised the matter, and they too were referred to the "right forum".

Meanwhile, Parliament will still be without a secretary come 1 April.

Mapisa-Nqakula previously indicated that the position would be filled by that date. It has been vacant for the past five years, with Baby Tyawa acting in it.

"However, that's not worked out," Mapisa-Nqakula told the committee.

"We have worked very hard to ensure that we succeed in this assignment of getting a secretary of Parliament. We have not won."

She said they were working on a new advertisement for the post.

If it is not published this Sunday, it will be published by the next one.

Democratic Alliance (DA) leader John Steenhuisen is threatening to take government to court for what he calls an “irrational and unreasonable” extension of the National State of Disaster and is urging the public to back the DA in its court action.

On Tuesday, Cooperative Governance and Traditional Affairs Minister Dr Nkosazana Dlamini Zuma gazetted a further extension of the Covid-19 National State of Disaster, until April 15.

South Africa has been under the National State of Disaster for over two years, since the outbreak of the pandemic.

The DA is claiming that by extending the State of Disaster government is hoping to put in place permanent legislation to keep the lockdown in place.

“I have today instructed our attorneys to bring an urgent court challenge to Tuesday’s irrational and unreasonable extension of the State of Disaster. But it’s not enough just to end the State of Disaster. The lockdown itself must end. It can’t just become permanent legislation, as the government is trying to do,” Steenhuisen said.

The DA leader said government had claimed it was being led by science on the lockdown, which Steenhuisen said had now been indicated to be unnecessary, irrational and unreasonable.

He pointed to hundreds of thousands of job losses under the lockdown, thousands of livelihoods destroyed, millions of school and university days missed, and billions of Rands lost to tax revenue, which he said could have been used for poverty relief.

He said the country was under a self-imposed State of Disaster, caused by the Covid-19 restrictions, that was doing more harm than good, and believed that ending the lockdown would have a major positive impact on South Africa’s economy.

He went on to urge government to allow the sports sector to open up by allowing spectators in stadiums and to drop indoor and outdoor limits on public gatherings.

Steenhuisen questioned why in South Africa it was still the law to wear masks in public, including in schools, where he said they were a barrier to learning and a source of discomfort.

He suggested that, like other countries, masks should only be mandated in high-risk contexts, such as oncology wards.

“The ANC government is no longer fighting the spread of Covid. It is fighting to hold on to the powers it has become accustomed to these past two years. Such an unconstitutional power grab cannot be tolerated in an open, democratic society like ours,” he concluded.

The South African Human Rights Commission (SAHRC) says it has seen an increase in complaints, but financial constraints make it hard to deal with them timeously.

On Wednesday, the commission released its annual trends analysis report, which indicated that in the 2019/2020 financial year, there was a 13% increase in the number of complaints received.

Deputy chairperson Fatima Chohan admitted that financial constraints were hampering the commission from dealing with complaints.

"We are very reliant on the number of warm bodies in our organisation. When people come to complain to us, we would require somebody to take down the statement, probably a legal advisor, to assess the legality. or whether the case has merit. If we need to intervene, that requires warm bodies again - whether in litigation or trying to mediate a solution to a complaint. Given the fact that we have to restrict and limit our personnel costs, this clearly affects our operations."

This was echoed by CEO Tseliso Thipanyane, who said, "The funding does affect us. we have over 60-million South Africans, nine provincial offices, and about 1 180 staff members. So, we can't be at every corner of the country."

Thipanyane added that they also have a bit of a backlog in the numbers of complaints they have received and are able to resolve within the financial year.

"Those are some of the issues that we are grappling with, and we are trying to see how best we can use our mandate to protect people from human rights violations in a much more effective manner within the financial constraints. Of course, we can always do with more money, but we must take into account that the county is facing financial difficulties."

SAHRC spokesperson Gushwell Brooks said the 13% increase in the number of cases reported might be partly due to the increased advocacy work the organisation was doing.

Of the 6 092 cases reported, 75% were successfully investigated and concluded. The majority of the complaints (827) were related to equality, mostly race-based discrimination.

Healthcare, food, water and social justice had 702 complaints, while more than 600 cases were related to just administrative action - most based on concerns about non-responsiveness and delays in the provision of services by public bodies.

Brooks said the commission was also involved in various litigation in the reporting year. There are currently 69 cases across the country that are still before the courts.

The commission has held different investigative inquiries. This includes the Gauteng inquiry into allegations of racial discrimination by medical aid schemes and the national inquiry into violent attacks targeted at non-national long-distance truck drivers.

The Democratic Alliance (DA) believes companies, who want to do business with the government, should be scored based on sustainable development goals and not on the racial make-up of its shareholding.

The DA has long opposed race-based legislation to address the inequalities facing the country.

The party accused the African National Congress (ANC) of using race-based legislation to benefit a few, while most economically marginalised people continue to live in poverty.

The DA has now fine-tuned its stance on race-based policies.

It will present a private member's bill to amend the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic Empowerment (BBBEE) Act.

The DA said its amendments to the act, termed the social impact bill, would enable broader socio-economic redress.

The proposal does not focus on race or BBBEE status when scoring for government tenders is adjudicated.

Currently, bidders receive extra points on the scorecard, based on the BBBEE level.

The DA said companies should be incentivised for its contribution to social development goals.

How businesses had contributed to education, job creation and lessening socio-economic inequality should be used for government procurement processes.

The DA's head of policy, Gwen Ngwenya, said a focus on sustainable development goals was not only an internationally recognised procurement measure, but it would ensure that economic redress was achieved.

"Since the creation of the PPPFA, it has not seen the advancement of those disadvantaged. Our proposal intends to keep an element of preference in the allocation of contracts, but we want to ensure the impact is truly broad-based.

"By replacing BBBEE with recognising companies' private contributions to sustainable development goals, the PPPFA will enable addressing underlying causes of inequality. And benefits will go to those who need them. Black people would ultimately benefit," Ngwenya said.

According to the latest data from the Central Energy Fund, petrol and diesel prices currently look set for record increases in the first week of April, says the Automobile Association (AA).

Based on the current data, 95 octane petrol is set to increase by R2.15/l, 93 octane is expected to climb by R2.07/l, diesel by between R2.94/l and R3.08/l and illuminating paraffin by R2.51/l.

The AA says the current data implies that fuel prices will touch R24/l for petrol and R23.60 for diesel.

"If realised at month-end, these will be the biggest increases to fuel prices in South Africa’s history and will, undoubtedly, have major ramifications for all consumers and the economy in general," says the AA. "We must note, though, that this is the mid-month outlook, and oil prices are, for the moment, see-sawing significantly so there may yet be some relief before the official adjustment by the Department of Mineral Resources and Energy is made going into April."

Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars.

Oil prices have been soaring amid the fallout from Russia’s invasion of Ukraine.

Russia is the world’s third-largest producer of crude oil, and the expectation that it will be locked out of the market has caused a surge in oil prices. Traders are scrambling to secure oil supplies with Russia, unable to deliver some of its oils due to shipping and banking restrictions.

Last week, after the US announced that it would ban the import of Russian crude oil, Brent oil was pushed close to $140 a barrel. However, it has since fallen back to below $100 amid negotiations between Russia and Ukraine, as well as new lockdowns in China, which will cool fuel demand. The rand has also remained stable.

Based on the current data, the increase to oil prices is contributing 98% to the predicted price hikes, with the rand contributing the other 2%.

"Effectively, though, the rand’s value against the US dollar is having a nominal impact on the price of fuel locally," said the AA.

"Locally there is little to cushion the blow for millions of South Africans who are struggling to cope with a fragile economy which is hurting their personal financial situation. Consumers should brace themselves and prepare for what is likely to be a long winter if the conflict in Ukraine is drawn out."

Looters of State funds had a free rein for a decade - and now the National Prosecuting Authority (NPA) is playing catch-up to bring them to book.

This is according to Anton du Plessis, the NPA's deputy national director of public prosecutions for strategy, operations and compliance.

"If we think we are going to play catch-up after being 10 years behind, without making those bold changes, we are mistaken," he said.

On Tuesday, the head of the NPA, Shamila Batohi, and her senior directors briefed the Standing Committee on Public Accounts on cases referred to it by the Special Investigating Unit (SIU).

Du Plessis told the committee it was not just about money and that a massive mind shift was needed.

"One of the things that happened since our rebuilding in 2019, we realised that those committing these kinds of crimes got a 10-year headstart on us in many ways. That means not a slight uptick in our pace is needed, but a huge step-up. It's a sprint to catch up, we are confident that we will catch up, but a lot of things have to happen to enable us to catch up," he said.

Du Plessis said the NPA's quest to tackle major corruption cases started on the back foot.

He said: "One of the things we need to do is not just focus on money. We need to be bold and innovative in terms of how to bring the resources into the NPA and the criminal justice system. It is not just about bringing resources and money in, it's about how we collaborate with the private sector, without undermining our independence or our ability to prosecute these cases without fear or favour."

Du Plessis said the release of the Zondo Commission reports presents an opportunity to review the NPA's processes.

"Judge Zondo, himself, makes the point that there has to be a review of the legal structure and architecture that we currently operate in, with a very honest reflection of what is working and what is not.

"For example, the model of prosecution and investigations. We need to have an in-depth discussion on whether to amend the current legal framework within which we operate, and that is something which I know we will be working on to make recommendations to the minister and president. It speaks to this bold and innovative response that is needed," he said.

Batohi said the NPA has specialised types of skills, which it continues to build.

"One must remember there was no will political will, [or] willing law enforcement to deal with these cases of high-level corruption. And so, these cases were deliberately not given any attention. Since 2019, there has been a focus on these cases. Together with the DPCI (Hawks) and the SIU really trying to make an impact, but also building the capabilities and capacities at the same time," she said.

Asked about the long delays in prosecutions, Batohi said: "It is very difficult to say what is the lifespan of a case. It also depends on the resources. Depending on the complexity of the case, it is like asking how long a piece of string is. I agree that we cannot have cases that go on indefinitely. We must try to ensure that, even in the complex matter, we bring them to court as quickly as we can."

The deputy director of public prosecutions, Rodney de Kock, said resources had been directed to focus on corruption matters.

"Over the next six months, the NPA is ramping up its ability to deal with complex corruption (cases)," he said.

National Treasury has revised its 2022 estimates for inflation owing to the war in Ukraine from 4.8%, which was the February projection, to between 5% and 5.5% - depending on how much the oil price rises over the year.

This is significantly lower than many economists, some of whom have estimated inflation for 2022 could average 5.9%.

Treasury estimates that motorists will on average pay R20.28 for a litre of fuel during 2022. The inland cost of a litre of 93 octane is R21.35. Treasury estimates, which are based on oil futures, assume that the elevated oil price will not last throughout the year and that it will peak in March and April and ease thereafter.

At a briefing to Parliament on the impact of Russia's invasion of Ukraine on the South African economy, the Treasury said that based on the crude oil futures curve, the oil price has risen 19%, taking inflation projections to 5%. If the crude oil price was to rise by 30% inflation would average 5.2%. A 40% increase would take inflation to 5.3% and a 50% rise to 5.5%.

Treasury official Clinton Joel told Parliament’s committee on mineral resources and energy:

"Under the three scenarios, headline inflation is anticipated to edge towards the upper bound of the Reserve Bank’s target range whilst it is estimated that consumers will pay R3.00 more for a litre of fuel, should the price of oil rise by 50% relative to the Budget Review forecast."

The SA Reserve Bank’s inflation targeting range is between 3% and 6% although the bank has unofficially targeted the mid-point of the band.

While rising wheat and oil prices and a potential weakening of the rand against the dollar will have upward impact on inflation, the rally in export commodity prices "would provide a tailwind to the external account, provide added support to the mining sector and a possible windfall to revenue collections", said Joel.

Fuel rationing

The Department of Mineral Resources and Energy, also briefing the committee, warned MPs that if the conflict in Ukraine continued beyond April, South Africa would run into supply problems and would have to consider fuel rationing.

Deputy director-general Tseliso Maqubela said this could involve rationing motorists to 50 litres per visit and calling on people to work from home where possible. Motorists were also encouraged to drive at lower speeds, for instance at 100km/h in a 120km/h zone.

"We are seeing evidence of decreased availability of certain products. There are indications of shortages of diesel [globally]. Diesel that had been flowing to Europe from Russia is so longer flowing at the same volumes with some being diverted towards the war effort in Russia. SA will be okay for March and April but if the war goes beyond that we will begin to experience security of supply issues," said Maqubela.

Makhubela said that the best way to cushion the economy against fuel price increases would be to provide support to public transport operators, such as taxis, and to food producers.

Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma on Tuesday announced the extension of the National State of Disaster to April 15.

The country has been under the National State of Disaster for 24 consecutive months since it was declared in March 2020. The previous extension was set to end on March 15.

“In terms of Section 27(5)(c) of the Act, I hereby further extend the National State of Disaster that I extended to March 15, 2022 to April 15, 2022, taking into account the need to continue augmenting the existing legislation and contingency arrangements undertaken by organs of State to address the impact of the disaster,” said Dlamini-Zuma.

Political parties and ordinary South Africans have been calling for the National State of Disaster to be scrapped as the country is seeing lower Covid-19 infection rates and deaths.

However, Absa has said a fifth wave is predicted as early as next month.

Absa says it is expecting the fifth wave of Covid-19 infections to emerge as soon as next month. New daily Covid-19 infections in South Africa are currently below 1 000 a day, and there have been no new deaths recorded in the official tally in the past two days.

The country is waiting for President Cyril Ramaphosa to announce new Covid-19 regulations as he's alluded to a possible end to the State of National Disaster, amid calls for mask regulations to be dropped outdoors and temperature checks to be scrapped.

"We do anticipate a fifth wave. We think it will start as early as late next month," said Absa interim CEO Jason Quinn.

Absa said it expects that waves of infection will continue, but social-distancing restrictions in each wave will likely become less prohibitive.

The bank said Covid-19 claims in the fourth wave were better than its insurance business expected. So, it might be the case that the fifth wave could also be less severe than the third wave, which hit SA life insurers hard.

In the first half of 2021, Absa increased its Covid-19 provisions to R846-million, with most of that – R836-million – set aside for the South African operations. The bank used R701-million to cover claims in the third and fourth waves.

Quinn believes that the Omicron wave was less severe because the level of vaccination in the countries that Absa operates has created strong population immunity. Consequently, the impact on the economy may be less going forward.

But he said Absa's actuaries have provided for a number of other possible waves still in the insurance business.

Absa has topped up the R146-million left from the provisions set aside in June 2021 by another R330-million, taking its provision for the fifth wave and some of the fourth wave claims to R476-million. These are just Covid-19 provisions. There is money set aside for other ordinary death claims. Absa's interim financial director, Punki Modise, believes this is enough for now.

"When we looked at how the last wave saw itself out, the claims experience has largely been a lot lower than what we originally anticipated. So, we feel comfortable that we have appropriately catered for claims that are still to come," said Modise.