Johannesburg – Business Leadership SA has welcomed
Wednesday’s court ruling that effectively ends cooperation agreements between
Eskom and countries that are home to nuclear providers.
In a statement issued on Friday, the association says: “Once
again the rule of law has triumphed in South Africa.”
Its board and members of BLSA congratulate Earth Life
South Africa and Southern African Faith Communities’ Environment Institute for
their courage and fortitude in successfully challenging the government’s proposed
nuclear deal.
Safcei and Earthlife Africa filed their application in
the Western Cape High Court in October 2015 to challenge a 2013 determination
by former Energy Minister Dipuo Peters that South Africa should procure 9 600 MW
of nuclear power.
The two organisations also challenged the
constitutionality of government agreements for procuring nuclear reactors and
asked the court to declare invalid agreements South Africa entered into with
the US, the Republic of Korea and Russia.
At the time, the NGOs claimed that South Africa was
secretly preparing a nuclear power procurement deal.
Earthlife and Safcei argued that the decision to procure
nuclear energy could bankrupt South Africa “especially since much lower-cost
options are available such as renewable energy.
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Judge Lee Bozalek in the Western Cape High Court, by
setting aside the unconstitutional and unlawful cooperation agreements with the
US, Russia and Korea, has assured South Africans of future public participation
and more transparency, BLSA says.
“BLSA applauds this ruling, particularly given the
nuclear new build programme was a red-flag for ratings agencies. Fitch had
cited it as central to the decision to remove former Finance Minister [Nhlanhla]
Nene and recently stated it contributed to the dismissal of Minister [Pravin] Gordhan.”
It adds it also noted and supported the clear findings of
the Integrated Resource Plan, which suggests South Africa does not need a R1
trillion nuclear plan. “In our current low-growth environment the costs and
affordability of a nuclear program will strain public finances already under
pressure.”
It says: “The judge’s findings have forestalled
government from flouting constitutional requirements, sidestepping parliament
and the public and defying the standards of transparency required in a
democracy.
“Given that Eskom, assigned responsibility for
procurement, as recently as last week was seeking exemptions from certain
National Treasury regulations, BLSA welcomes the ruling that the Minister of
Energy and NERSA will make a new, more accountable determination.”