The initial quote for Medupi construction stood at around R32bn and because of kickbacks and corruption, was pushed up to some R91bn and approved by the then corrupt board. The same board then ordered a second station, Kusile, at the same inflated price and without going to tender and while appointing Chancellor house as the BEE beneficiary. Logic dictates the economies of scale would have applied to lower the overall costs.
“Its a case of why build one when you can build two for four times the price using public money,” says Blom.
Blom estimates that if Kusile and Medupi were halted immediately, there would be no reason why the price of electricity should not revert to 40cents/Kwh – where it should have been in the first instance for 2018.