South Africa: A Loan Too Far – Why the World Bank Cannot Lend Eskom Money

source: allAfrica
Business Day (Johannesburg)
7 April 2010

Johannesburg — THE World Bank board will be in breach of its own regulations if it decides tomorrow to grant a loan of more than $3bn to Eskom to help it build its 4800MW coal-fired power plant at Medupi in Limpopo.

Not because of the plant’s capacity to pollute, but because hundreds of millions of those dollars will end up in the bank accounts of the ruling African National Congress (ANC).

The World Bank surely cannot allow this to happen. If it does it will threaten its carefully constructed reputation as a corruption-buster in big projects around the world.

Corruption in the Eskom build programme — which most South Africans appreciate is critical to the future success of our economy — arises because the ANC, through a company it directly owns called Chancellor House, in turn owns 25% of one of the [continue reading]

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