Energy commentator, Tshepo Kgadima“ has described Just Energy Transition (JET) as nothing short of a grand-scale theft and a money laundering exercise by powerful European and American interests.
Kgadima, Redge Nkosi, and EFF MP, Carl Niehaus, debated the $8.5 billion loan granted to South Africa by European countries at the COP26 in 2021 in Glasgow during an X Space session on Wednesday.
The discussion feels particularly urgent in light of a recent exposé by The Star, which has questioned the opaque nature of numerous JET deals, alleging a concerning lack of accountability from the South African government.
The article has ignited calls for transparency regarding the fate of billions intended for energy transition, leading to a chorus of voices demanding answers.
A report from Wits University titled “What happened to the Just Energy Transition grant funding?” has further fuelled criticism, as political figures and energy activists raise alarms about funds that appear to have “disappeared” amid the ambitious push to transition South Africa from coal to clean energy.
A recent report by researchers from Wits, Katrina Lehmann-Grube, Imraan Valodia, Julia Taylor, and Sonia Phalatse, reveals that the $8.5 billion JET which was acquired by President Cyril Ramaphosa in 2021, has not been properly accounted for.
During the heated exchange on Wednesday, Kgadima didn’t mince words, stating: “It is just a money laundering exercise. There is no such thing as energy transition; it’s a term coined by money launderers and thieves.”
He suggested that the scale of the alleged fraud warranted direct intervention at the highest levels, hinting with irony at the potential involvement of US President Donald Trump to dismantle what he described as a “scam”.
Nkosi, echoing Kgadima’s sentiments, contended that South Africa had no real need to enter into this loan agreement.
“The country could have borrowed the money it needed to empower Eskom without relying on powerful colonial structures, who are the actual beneficiaries of the loan given to South Africa in 2021,” he argued.
He claimed that the deal essentially traps the nation into a never-ending cycle of debt to the very governments that had historically colonised the region.
The criticism didn’t stop there. Nkosi articulated a frustration with Parliament, which he deemed should have acted as a watchdog on behalf of ordinary South Africans.
“Parliament should have rejected this loan, but it sat back and did nothing. All they did was to rubber-stamp this deal,” he asserted, warning that the agreement merely served the interests of the elite while compromising the welfare of future generations.
Niehaus also weighed in, referencing the Wits article that indicated many of the institutions receiving funding were already operational and that proper consultation, as promised, never occurred.
“The poor who need development have not benefited a cent from this deal,” he lamented, adding a poignant reminder of the imbalances that persist in the energy transition narrative.
The Star