Johannesburg - The ruling African National Congress (ANC) has turned state resources into its own coffers, Economic Freedom Fighters leader Julius Malema said on Tuesday.
”The Hitachi matter is not a new thing…this is how the ANC operates and that is how Zuma and his party runs our country…it is everywhere. The ANC uses state resources for itself,” Malema told a breakfast meeting of the American Chamber of Commerce.
Malema was commenting on the US Securities and Exchange Commission (SEC) decision to fine Japanese conglomerate Hitachi for paying an ANC “front company”, Chancellor House, money in connection with contracts to build Eskom’s Medupi and Kusile power stations.
Hitachi agreed to pay $19 million to settle the charges, without admitting or denying the allegations.
The SEC has alleged that Hitachi sold a 25-percent stake in a South African subsidiary to Chancellor House Holdings which meant the ruling party would enjoy a share of profits from any power station contracts that Hitachi secured.
In 2007, the company won Eskom contracts that were worth R38 billion at the time.
Malema said the ANC destroyed state capacity through cadre deployment. Eskom’s CEO Brian Molefe was a talented manager, but state interference would lead him to fail in his job, he said.
”Molefe is capable, he is a talented person but watch as the ANC interferes in Eskom’s affairs as it does at other state owned entities.”
AFRICAN NEWS AGENCY