Press Release: $3.75 Billion World Bank Loan to Eskom to Face Full Enquiry
groundWork, Earthlife Africa Jhb
4th of August 2010

The World Bank Inspection Panel it to undertake a full investigation of the $3.75 billion loan by the World Bank to Eskom, the South African energy utility.  This was the finding of the preliminary investigation undertaken in May 2010. In April 2010, local residents in the Waterberg, Limpopo Province, addressed their concerns on inter alia health, environment, cultural and human rights issues to the Inspection Panel. [1]

At a full World Bank board meeting on the 29th of July, Mr. Roberto Lenton Chairperson of the Inspection Panel stated that, ‘based on its review of the relevant documentation and its field visit, and taking into account the sharply different views of the Requesters and Management, the Panel considered that the Request raises important issues of compliance and harm that can be addressed only in the context of an investigation.’ [2]

This full investigation it to be undertaken despite the South African government, backed by Algeria and Saudi Arabian Executive Directors of the World Bank requesting an almost unprecedented full meeting to discuss the project in an unsuccessful ploy to challenge the complaint and limit its scope.

‘This action highlights South African government’s anxiety about the fact that community people and NGO’s have raised concern about this project, and that there is truth in their evidence’ says Bobby Peek, Director of groundWork, Friends of the Earth South Africa who submitted together with Earthlife Africa Johannesburg a call for the inspection on behalf of the local community in the Waterberg.

Tristen Taylor of Earthlife Africa Johannesburg, raises the importance of being on the ground with the local people to understand the environmental justice impacts.  ‘When the inspection panel came to South Africa, interviewed the people, went to the area and actually saw what is going to happen and what is already happening, they got a bit of a wake-up call’.

Both groundWork and Earthlife Africa Jhb remain concerned about the conflict of interest between the World Bank loan, the Medupi power station, and the ANC’s financial stake in Chancellor House. This issue remains a blight upon the body politic of South Africa.
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