The country’s fourth largest bank by assets, Absa, says it will tread cautiously in evaluating any proposals to fund Turkish company Karpowership, which was recently awarded the lion’s share of the emergency power procurement contract.
This is because of the allegations of irregularities surrounding the tender.
“We are not about to give away our reputation that we have built on one transaction,” said Absa interim CEO Jason Quinn when asked by shareholder activism organisation Just Share whether it had committed to financing Karpowership.
“I can confirm we have committed to nothing yet. Any commitment remains subject to independent legal, technical, environmental, insurance due diligences, as well as credit processes. I can also confirm that enhanced reputational due diligences would be conducted,” said Quinn.
Majority Turkish-owned company Karpowership was awarded the lion’s share of government’s R225bn “emergency” power procurement round in March to provide liquefied natural gas-fired power from floating barges at three points around the country's coast.
Aside from environmental concerns — the ships emit greenhouse gases and are known to endanger marine life — there have been allegations of corruption around the bidding process.
A recent investigation by amaBhungane revealed that bidders for the huge contract got the impression that the numerous and far-reaching changes to the tender were designed with one outcome in mind — to ensure Karpowership won the lion’s share of the contract.
DNG Power, a disgruntled bidder, has taken the department of mineral resources and energy to court claiming that it was put under pressure by officials to engage in corruption to win the deal.
The case goes to court in July. Quinn confirmed no decision would be taken until the case has been resolved.
The department of mineral resources and energy has denied any wrongdoing.
With Carol Paton
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