Chancellor House deal: ‘Investing is not a crime’

2014-04-27 15:00

The ANC’s investment company has defended the party’s R170?million purchase of a major Eskom supplier, despite the ruling party’s official position that it will no longer invest in companies doing business with the state.

Yesterday, the Weekend Witness in KwaZulu-Natal broke news of the deal, which saw Chancellor House invest R34?million in a transaction that gives it immediate control of 49% of Pfisterer, the Swiss-owned manufacturer of components for electrification.

It will buy out the remainder over the next 18 months.

Pfisterer’s current R550?million contract with Eskom expires later this year, and new Eskom infrastructure contracts will be awarded early next year.

Chancellor House’s Mamatho Netsianda initially denied knowing about the deal, or even of Pfisterer’s existence.

But yesterday, he defended it.

Netsianda told City Press Chancellor House had a right to invest where it wanted, despite ANC treasurer-general Zweli Mkhize recently saying the party would no longer invest in companies that do business with the state.

“If Chancellor House invests, it is not a crime. Why are you bothering me? We didn’t break any law. You don’t have a job to do. I have a job,” he said.

Mkhize declined to comment, referring City Press to Chancellor House, whose Eskom buy-in comes a month after Hitachi Power Africa, another Eskom supplier, got rid of its ANC shareholding because of a conflict of interest.

The deal also comes on the back of Eskom asking the state for another bailout, this time for R50?billion.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.