Hon Chairperson, members of the executive present here today, members of the fourth democratic Parliament, ladies and gentlemen, it does not happen very often that you find a homeboy in the gallery. Among those clever minds, I have my homeboy, Banzi Majola, in the gallery today.
In 2011, the Portfolio Committee on Public Enterprises visited the Bolivian Republic of Venezuela, amid speculation and media suspicions that we had gone over to Venezuela to study nationalisation. Part of my conclusion in respect of the study tour was that, indeed, for a developing nation to achieve its developmental goals, state-owned companies have to play a catalytic role to stimulate economic development in the context of a developing country.
Siza kuxabana kungekudala. [We will soon fight against each other.] The R300 billion Transnet infrastructure build that was announced by the President early this year is one perfect example of a state-owned company playing that catalyst role. Inasmuch as we in Cope welcomed the pronouncement by the President, we could ... [Interjections.] It is none of your business. We could not help but think, given the recent reports, that the family of the President, his close friends and Chancellor House combined have been very active, with a particular appetite for projects of this magnitude. The Sunday Independent ran a story over the past weekend under the headline "Zuma's boys behaving very badly". Other journalists and commentators are calling it "Zuma Incorporated"; some call it ZEE instead of BEE.
Minister, as a country, we want you to take us into your confidence. You must assure us that the Transnet infrastructure project will not be another Eskom build or the Transnet acquisition of locomotives or the sole domain of a chosen few in our country either linked to the President or to the ANC. Assure us that the work flowing from it will be shared amongst all who live in this country.
They say that silence is golden. I was tempted not to say a word about South Africa Airways, but on second thoughts I realised that that would be dereliction of duty. It can't be every year that we talk about SAA asking for a government bailout. Recently they have found other terminology because it is too scary to mention bailouts to those MPs. I suggest that instead of wasting money and going on a vindictive witch-hunt against former chief executive officer Dr Khaya Ngqula, your focus and efforts must be on turning our national carrier, our national pride, into a profit- making business.
It is not just doom and gloom though, Minister. I would like to comment, as you have correctly pointed out, that last year SAA received new aircraft in the form of A330-200s delivered in early 2011 and in February this year they received some A320s. In addition, the opening of the new route between Johannesburg and Beijing is worth mentioning. We all know that China is the second largest economy in the world and in the context of Brazil, Russia, India, China, South Africa, Brics, we have to make some contribution on that route.
Last year, on Christmas Day, I was at home in Alice - you see, this is not a social cluster, we are reading here - with my wife and sisters. They were busy preparing food for the usual Christmas feast when all of a sudden the lights went off. Because everyone in the neighbourhood has my number - including Nkosi Mavuso, Aa! Zwelidumile - frantic calls came through from members of the community worried about the prospect of a Christmas without the usual feast.
In this regard, hon members, allow me to commend Messrs Mxolisi Phinda of Eskom in Alice; Maphelo Mvunelwa, who is Eskom's Senior Adviser on Parliamentary Affairs, seated in the gallery; and Thys Bekker, who is Eskom's Regional Manager in East London, for working tirelessly on that day, sacrificing their Christmas in the service of our people. In less than two hours, the lights were back on and we still had our lunch on time. Please convey my sincere gratitude to the three gentlemen I have just mentioned.
Having said that, hon members, I would like to bring to the attention of the Minister that the Eskom pricing structure is skewed against the poor and favours the big multinationals and mining houses. It is reported that to generate 1 kilowatt costs Eskom approximately 35c, whereas you and I buy a kilowatt from the municipality or Eskom for between R1 and R1,50.
Business has to be good for Eskom and municipalities, because their profit margins are in the region of 75% - 125%. However, what is frightening, hon members, and what we are never told is that Eskom has a 25-year contract to supply electricity to three smelters, which are owned by BHP Billiton at a fixed price of between 12c and 15c a kilowatt.