Karpowership, the global powerhouse in energy production, has hit back at allegations made against its Lebanese branch after a Lebanese media outlet claimed that two powerships were been banned from leaving Lebanon. File picture
Karpowership, the global powerhouse in energy production, has hit back at allegations made against its Lebanese branch after a Lebanese media outlet claimed that two powerships were been banned from leaving Lebanon. File picture

Global energy giant with SA links hits back at ’desperate and untrue’ reports

By Itumeleng Mafisa Time of article published May 9, 2021

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Johannesburg - Karpowership, the global powerhouse in energy production, has hit back at allegations made against its Lebanese branch after a Lebanese media outlet claimed that two powerships were been banned from leaving Lebanon pending an investigation into questionable commissions related to the business. Karpowership has levelled these reports as "desperate and untrue".

Karpowership SA spokesperson Kay Sexwale has said that Karpowership has been powering the Lebanon grid for more than eight years and that the company has acted in good faith, continuing to supply electricity despite not receiving payments for the past 18 months.

Karpowership SA, a subsidiary of Karpowership, plans to produce an additional 1220 MW of much needed electricity via powerships to add to the severely strained electricity grid in South Africa.

The company will be based at three coastal sites using cleaner energy than what is currently being used in the country in the form of liquid natural gas. The identified sites are in Richards Bay, Coega and Saldanha Bay.

Karpowership SA is a black female-owned company with a 49% South African shareholding. The remaining 51% belongs to Karpowership, who are renowned global experts in the field of energy with a specialised focus on powerships. The collaboration is an innovative South African initiative with a group of energy, legal and financial professionals combined with industry experts within the country.

According to the report, an order to seize the powerships and prevent them from leaving Lebanon has been issued to ensure the state’s rights to collect the penalty money, which amounts to $25m (about R356m) to the Lebanese treasury.

Sexwale further added: “Karpowership Lebanon is well prepared to defend itself against all allegations to the fullest extent of the law in domestic and international courts.”

In March Karpowership SA was announced as the preferred bidder of three of the eight bids that were issued by the Department of Mineral Resources and Energy in order to deal with the energy supply crisis in South Africa through the use of floating power stations for the Risk Mitigation Independent Power Producers Procurement Programme ((RMIPPPP). These power stations aim to provide additional power efficiently and at a low cost in order to support the existing grid.

The Lebanese media outlet has claimed that the issuing of the order was based on “preliminary investigations”.

“We strongly urge the authorities and the Republic of Lebanon to respect legal and contractual obligations and, crucially, to ensure rule of law.

“Regrettably, Karpowership is now left without further options and have served a final notice of suspension of power generation services. We have worked for many months to avoid taking this action, and still hope a reasonable solution can be urgently reached so that we can continue to provide the lowest-cost and much-needed electricity to Lebanon,” Sexwale added.

The Star

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