1 00:00:00,120 --> 00:00:05,160 Speaker 1: The Supreme Court of Appeal very interesting ruling against ESCOM 2 00:00:05,920 --> 00:00:10,840 Speaker 1: a legal battle with AfriForum, and AfriForum had used the 3 00:00:10,880 --> 00:00:15,280 Speaker 1: Promotion of Access to Information Act to ask for access 4 00:00:15,680 --> 00:00:20,800 Speaker 1: to contracts which relate to coal and diesel, transport and supply, 5 00:00:20,880 --> 00:00:22,439 Speaker 1: and ESCAM said we're not going to give that to 6 00:00:22,480 --> 00:00:26,480 Speaker 1: you because the documents are commercially sensitive and their release 7 00:00:26,520 --> 00:00:30,040 Speaker 1: could harm negotiations with suppliers. And the Supreme Court of 8 00:00:30,040 --> 00:00:34,559 Speaker 1: Appeal said, no, that's not good enough. That is not 9 00:00:34,880 --> 00:00:41,040 Speaker 1: sufficient evidence that disclosure will cause real harm. So, you know, 10 00:00:41,080 --> 00:00:46,160 Speaker 1: I suppose ESCOM either releases the documents or it comes 11 00:00:46,240 --> 00:00:50,640 Speaker 1: up with better arguments as to why those documents should 12 00:00:50,640 --> 00:00:53,560 Speaker 1: not be released. And what I've read from legal people 13 00:00:53,600 --> 00:00:55,280 Speaker 1: in the wake of this judgment is that it's going 14 00:00:55,320 --> 00:00:57,840 Speaker 1: to be very difficult for ESCOM and indeed any other 15 00:00:58,000 --> 00:01:01,160 Speaker 1: SOE because if this applies to ESCOM, it applies to Denel, 16 00:01:01,240 --> 00:01:04,280 Speaker 1: that applies to Transport transit, it applies to any state 17 00:01:04,319 --> 00:01:08,600 Speaker 1: owned enterprise. I'm pretty certain that this will head for 18 00:01:08,600 --> 00:01:12,440 Speaker 1: the Constitutional Court, which means that every forum probably won't 19 00:01:12,480 --> 00:01:15,920 Speaker 1: have access anytime soon to those contracts. More name, most 20 00:01:16,240 --> 00:01:20,440 Speaker 1: of every forum joins us now afternoon more name good John, 21 00:01:20,840 --> 00:01:23,640 Speaker 1: and that this is I think, you know, for every 22 00:01:23,640 --> 00:01:26,320 Speaker 1: forum you brought the case, but for anybody who wants 23 00:01:26,400 --> 00:01:30,520 Speaker 1: information out of so s this is a very important judgment. 24 00:01:31,959 --> 00:01:34,560 Speaker 2: Yes, I think that this is a large victory for 25 00:01:34,959 --> 00:01:39,080 Speaker 2: not only transparency with regards to the state in South Africa, 26 00:01:39,600 --> 00:01:42,920 Speaker 2: but more over, the court made it clear and that 27 00:01:43,600 --> 00:01:48,320 Speaker 2: in this instance that form is a public utility company 28 00:01:48,680 --> 00:01:55,559 Speaker 2: and they are they are executing their obligations with public funds, 29 00:01:55,720 --> 00:01:58,640 Speaker 2: and for that reason it's really important that the public 30 00:01:59,080 --> 00:02:02,560 Speaker 2: cannot only have to say, but can see what the 31 00:02:02,800 --> 00:02:08,000 Speaker 2: specific state institution is spending their money on. And for 32 00:02:08,040 --> 00:02:12,280 Speaker 2: that reason, uh es COM cannot hide or try to 33 00:02:12,360 --> 00:02:15,600 Speaker 2: keep this information secret. So that I do think this 34 00:02:15,720 --> 00:02:19,640 Speaker 2: is a large cut victory for transparency with all state institutions. 35 00:02:19,720 --> 00:02:22,840 Speaker 2: But also we've also seen the past in the previous 36 00:02:22,919 --> 00:02:25,680 Speaker 2: judgment in this case, meaning in the High Court, the 37 00:02:26,080 --> 00:02:30,400 Speaker 2: court also said that ESCOMB cannot hide behind poppy and 38 00:02:30,840 --> 00:02:35,280 Speaker 2: so in that in this instances where specific information was 39 00:02:35,320 --> 00:02:39,240 Speaker 2: asked with with with the payment of public funds. So 40 00:02:39,280 --> 00:02:41,760 Speaker 2: I think there is a large cut victory. This is 41 00:02:41,880 --> 00:02:45,560 Speaker 2: very important and sadly I do agree with you that 42 00:02:45,680 --> 00:02:50,679 Speaker 2: instead for just giving us the specific documents, I think 43 00:02:50,720 --> 00:02:54,200 Speaker 2: there is a large chance that if ESCOM will do 44 00:02:54,560 --> 00:02:58,040 Speaker 2: everything in its power not to give us this document, 45 00:02:58,560 --> 00:03:01,680 Speaker 2: and this kind of shows or already that there is 46 00:03:01,760 --> 00:03:06,679 Speaker 2: something to buy given the call contracts. 47 00:03:06,720 --> 00:03:09,240 Speaker 1: I look, we can't say this for certain, but I 48 00:03:09,280 --> 00:03:13,040 Speaker 1: think given the history of corruption within state owned enterprises, 49 00:03:13,360 --> 00:03:17,560 Speaker 1: we have reason to believe that some of the contracts 50 00:03:17,720 --> 00:03:20,040 Speaker 1: might not pass close scrutiny. 51 00:03:21,800 --> 00:03:26,680 Speaker 2: I think if you look at iscom's financial statements, and 52 00:03:26,720 --> 00:03:29,360 Speaker 2: I would say go back to more than a decade, 53 00:03:30,240 --> 00:03:34,480 Speaker 2: each of their financial statements, notes that are made is 54 00:03:34,520 --> 00:03:38,320 Speaker 2: that there is large scale problems within the supply chain 55 00:03:38,440 --> 00:03:46,840 Speaker 2: management processes and supply chain management process or documents within ESCOM, 56 00:03:47,560 --> 00:03:51,320 Speaker 2: And for that reason, I do think that some of 57 00:03:51,360 --> 00:03:54,280 Speaker 2: that will go through. I think it's important to note 58 00:03:54,320 --> 00:03:58,840 Speaker 2: that even when incomes audited, it has a general rule 59 00:03:58,960 --> 00:04:03,960 Speaker 2: that auditor is will only look at specific contracts that 60 00:04:04,040 --> 00:04:08,000 Speaker 2: are larger than two and a half million RAN. So 61 00:04:08,360 --> 00:04:11,880 Speaker 2: when they are saying that there are problems with processes 62 00:04:11,960 --> 00:04:16,640 Speaker 2: within SCORN, it's problem with procurement contracts over to and 63 00:04:16,640 --> 00:04:19,159 Speaker 2: a half million. Now the question should be asked, do 64 00:04:19,200 --> 00:04:23,200 Speaker 2: you think thing that supply chain management contracts and into 65 00:04:23,240 --> 00:04:31,359 Speaker 2: and a half million will be better. I seriously doubt that. 66 00:04:28,960 --> 00:04:35,640 Speaker 1: This case specifically, excuse me, this contract, this case resolve 67 00:04:36,120 --> 00:04:40,839 Speaker 1: revolves specifically around s COM. Was that deliberate to target 68 00:04:40,880 --> 00:04:43,760 Speaker 1: one so oe, the one that you thought was most 69 00:04:43,960 --> 00:04:49,080 Speaker 1: likely to have unscrupulous contracts on its books? And why 70 00:04:49,279 --> 00:04:52,440 Speaker 1: s COM would you go after Transnet in a similar fashion? 71 00:04:52,480 --> 00:04:57,159 Speaker 1: And other sees. If indeed the Constitutional Court confirms the 72 00:04:57,320 --> 00:05:03,080 Speaker 1: Sea ruling. 73 00:05:00,000 --> 00:05:03,120 Speaker 2: Think we will limit ourselves. I think the one thing 74 00:05:03,160 --> 00:05:06,560 Speaker 2: that makes it is from interesting and very important to 75 00:05:06,640 --> 00:05:10,599 Speaker 2: us is because of the last decades price increases and 76 00:05:10,680 --> 00:05:16,760 Speaker 2: price determinations the electricity with the Reticulation Act, sorry, the 77 00:05:17,240 --> 00:05:20,679 Speaker 2: let's just see regulation Act makes it clear that only 78 00:05:20,800 --> 00:05:26,720 Speaker 2: prudently incode costs can be transferred over to the consumer. Now, 79 00:05:26,720 --> 00:05:30,680 Speaker 2: what this means is not prudently incurde costs should be 80 00:05:31,240 --> 00:05:34,240 Speaker 2: left outside of the scope and should not have an 81 00:05:34,320 --> 00:05:38,560 Speaker 2: impact on consumers tariffs. And if we go through these documents, 82 00:05:38,960 --> 00:05:42,040 Speaker 2: I think it might be become clear that there were 83 00:05:42,040 --> 00:05:45,240 Speaker 2: certain costs that should have been excluded to consumers and 84 00:05:45,279 --> 00:05:50,280 Speaker 2: that and then we can obviously use our legal instruments 85 00:05:50,320 --> 00:05:53,960 Speaker 2: to have an impact on the tariffs on that stage. 86 00:05:54,040 --> 00:05:57,400 Speaker 2: But the important part, the soul for reason why if 87 00:05:57,440 --> 00:06:00,640 Speaker 2: we are doing this, is to get those contracts. And 88 00:06:00,720 --> 00:06:06,000 Speaker 2: I can tell you that different universities, different engineering companies 89 00:06:06,320 --> 00:06:11,520 Speaker 2: and different ordered companies has already requested after for them 90 00:06:11,560 --> 00:06:14,600 Speaker 2: to be part of a somewhat team to go through 91 00:06:14,600 --> 00:06:17,520 Speaker 2: these contracts and to make reports on them. So I 92 00:06:17,560 --> 00:06:20,360 Speaker 2: do think this is a large girl victory and it's 93 00:06:20,400 --> 00:06:22,560 Speaker 2: going to be very important for us. But when we 94 00:06:22,640 --> 00:06:25,440 Speaker 2: receive these documents to see what we are able to 95 00:06:25,480 --> 00:06:27,120 Speaker 2: do with it, more than 96 00:06:27,120 --> 00:06:29,120 Speaker 1: I Mustard of after Fordham thank you very much for 97 00:06:29,160 --> 00:06:30,400 Speaker 1: talking to us this afternoon.