Thank you, Deputy Speaker. The Democratic Alliance notes with the extreme concern that the Department of Mineral Resources and Energy yet again received a qualified audit with findings. The truth actually emerges however when one examines the departmental performance metrics. Although the department spent 99% of its allocated budget, it achieved only 32% of its objectives.
In the midst of this dark and disturbing report there are however few entities that need to be singled out as lone shining lights in what is supposed to be the department that keeps our country energised. The National Energy Regulatory of South Africa has obtained their sixth consecutive clean audit. The National Radio Active Waste Disposal Institute also received an unqualified audit opinion.
It however appears that these entities are the exception and not the rule and they have succeeded in spite of the department and not because of it. The National Solar Water Heater Project run directly by the department has missed every single target that it set for itself. It is now stalled completely with the water heater sitting in storage wrecking up huge amounts of wasteful and fruitless expenditure. In addition to its own internal challenges, the department is failing dismally with regards to its governance of the various entities it oversees.
The biggest challenge is at the central energy fund and its subsidiaries; PetroSA and the Strategic Fuel fund which is little more than a bottomless pit of expenditure with no clear strategy or plan of action to resolve the liquidity crisis and operational sustainability. PetroSA is bankrupt and [Inaudible.] all likelihood run out of feed stock for its Mossel Bay refinery next year. However, the nuclear ... [Time expired.] The Democratic Alliance does not support this vote.
Deputy Speaker, the EFF rejects the Budget Review and Recommendation Report of the Portfolio Committee on Mineral Resources and Energy. We do so because the Report fails to appreciate the crisis that we are facing as a country. We have made recommendations to the portfolio committee before which was adopted by this House but were all ignored and that is why we are in this crisis.
We are supposed to be making stronger recommendations to change things. We were supposed to be recommending the cancellation of purchasing of power of the agreement signed with independent power producers especially on renewable energy that are killing Eskom. It is not a matter that must be negotiated. We were supposed to be recommending the normalising of coal prices at Eskom, that which is recommended by the National Energy Regulator of South Africa. We were supposed to be calling for the arrest of people including former Ministers who were involved in illegal sale of the country's oil that was sold at a price far much lower than its value. We know them, we saw them and they are here.
We were supposed to be recommending that PetroSA be given its rightful share in the Mossel Bay discovery as part of the step towards breaking the concentration of market in the hands of only six oil foreign-owned refineries. All these recommendations ... [Time expired.] All these recommendations are not included in the Report despite the contribution that the committee made in the fifth Parliament. The EFF rejects this budget. Thank you.
Deputy Speaker, from the outset let me state that as currently the nation's primary supplier of energy, Eskom, should fall under its rightful department, which is this department not the Department of Public Enterprises. This department's mandate is to ensure the secure and sustainable provision of energy in the country for its socio and economic development and to ensure that energy sector in South Africa is transformed into a sector which is sustainable, renewable and reliable energy supply becomes a norm rather than the exception.
With South Africa's abundance of fossil fuel resources namely, coal, still yet to be exploited with our coal fire powered stations at Medupi and Kusile yet to come on
line and both with the lifespan of 50 years, we must be cognisance of the fact that our Greenhouse gas and emissions from burning fossil fuels will increase and only pick around 2030. Renewable energy sources must therefore receive greater priority and effort by government.
Point of use solar and wind power energy supplied by government should also be looked for outer lying rural areas. The energy infrastructure is here to be made available. The IFP supports the Budgetary Review and Recommendation Report, BRRR, in the hope that this department will fulfill its mandate in ensuring a cleaner and secure energy future for today's and tomorrow's South Africa. I thank you.
Afrikaans:
Adjunk Speaker, die rol van goedkoop energie in Suid-Afrika se geskiedenis om Suid-Afrika van 'n mynbou na die mees gesofistikeerde ekonomie in Afrika te omskep, hoef skaars bespreek te word.
Ons het in die verlede Eskom gehad wat Suid-Afrika vinnig geindustrialiseer en ge-elektrifiseer het, waaruit die hele land en die hele ekonomie nou nog voordeel trek.
Sasol is 'n bewys van die deursettingsvermo van Suid- Afrikaners en Koeberg van hul vernuf.
Maar dit is 'n positiewe ontwikkeling dat die nuewe geintergreerde hulpbronplan voorstel dat ons 30% hernubare krag teen 2025 moet h. Maar as dit selfs vroeer kan gebeur is net soveel beter.
Nou, ironies genoeg, die heel goedkoopste manier vandag en die vinnigste om kragopwekking geinstalleer te kry is sonkrag. As 'n mens 'n relatiewe klein sonkragaanleg van 250KW opsit, is dit 'n belegging van, kom ons s redelik goed bereken, R3 miljoen. Uit so 'n belegging kan die beleggers konserwatief bereken 'n opbrengs h van R1,5 miljoen per jaar.
Nou, wat keer dat die privaatsektor en gewone mense dit doen? Dis regulasie wat dit keer.
Op die oomblik is daar in Suid-Afrika te veel energie. 'n Mens noem dit 'n droogte. Daar is 'n geweldige droogte, vir die wat dit nog nie gesien het nie. Daardie droogte se invloed kan teengewerk word deur boere and ander mense in die landelike ekonomie toe te laat om doodgewoon die krag wat hulle kan opwek op hulle eie grond, in die netwerk in terug te voer. Wat dit keer is nie tegnies of finansiele aspekte nie, maar regulasie.
Dis waarom die FF Plus voel dat ons nie hierdie verslag kan goedkeur nie. Dankie.
Deputy Speaker, there can be no doubt that this department is struggling and this is affirmed in the Report. The department has oversight and over energy in our nation and our country as we all know is facing unprecedented energy shortages with load shedding in the first quarter of this year by Eskom contributing to a 3,1% contraction in the GDP for that quarter.
Much of the corruption, maladministration and state capture that took place at Eskom have been highlighted in both parliamentary oversight inquiry as well as the Zondo
Commission into state capture. The ACDP looks forward to the perpetrators being locked up and ill-gotten gains been recovered. The auditor-general has for three consecutive years expressed the qualified audit opinion on this department. The basis for these finance are largely due to irregular expenditure being understated as well as material under spending of R63 million.
As far as the central energy fund is concerned, the ACDP welcomes the court application to set aside the disposal of the sale of the strategic crude oil stock. It beggars belief that this sale took place at all, placing our country at severe risk of oil shortages. We trusted that there will be a positive outcome to this court case. We also note the integrated resource plan. This is the electricity road map for the next 10 years and it is a fairly good starting point providing a framework for procurement of electricity generation.
However, the plan does not go extensively into the work that is required. We share concerns about the decommissioning of Grootvlei and Komati coal fire stations as both these stations had a highest power
availability factors in the entire Eskom fleet. This clearly needs to be reconsidered. I thank you.
Deputy Speaker, the ANC support this Budget Review and Recommendations Report. Its recommendations affirm the significant progress made by the Ministry and the Department of Mineral Resources and Energy during the year 2018/19 to address some of the long outstanding policy matters such as the integrated resource plan. The Integrated Resource Plan, IRP, will go a long way towards creating certainty in the energy sector for both investors and consumers.
One of the most revolutionary achievements of the ANC government since 1994, is the electrification of the overwhelming majority of households in South Africa, which is a programme housed in the department. The programme has restored dignity to the majority of black South Africans who were deprived of energy by apartheid. As we look towards the future, the decisions on the most appropriate energy mix for South Africa will become a matter for political contestation. The ANC will ensure that the department has the capacity to lead the country
on this matter. Most importantly, government must ensure that the masses of our people have access to energy at a cost that supports inclusive economic growth and development.
However, the ANC is concerned that the department has received a qualified audit opinion in two consecutive years. We are also concerned about the failure by some entities to submit annual reports and lack of consequence management on matters of misconduct. The portfolio committee however, will monitor that these matters are addressed as we have agreed unanimously in our portfolio committee that we will support this Budget Review Recommendation Report. I thank you.
Question put.
Motion agreed to (Democratic Alliance, Economic Freedom Fighters, Freedom Front Plus and African Christian Democratic Party dissenting).
Report accordingly adopted.