QAANITAH HUNTER, LIONEL FAULL* As the government scrambles to limit fallout, we reveal how Jacob Zuma grabbed control of the R1tn deal and negotiated directly with Vladimir Putin. President Jacob Zuma personally negotiated a nuclear deal with his Russian counterpart, Vladimir Putin, say highly placed government and ANC sources. This ensured that the intergovernmental agreement announced with fanfare this week took all but his most trusted and intimate inner circle by surprise. A senior ANC leader, who Zuma entrusted with intimate details of the negotiation with Putin, said that Zuma had ironed out details directly with the Russian president on the sidelines of the Brics (Brazil, Russia, India, China and South Africa) summit in Brazil in July, and finalised details of the pact during his highly secretive visit to Moscow last month. “It was simple. When Zuma came back from Brazil, it was done,” the senior ANC leader said. The party leader and another well-placed ANC MP added that the details of the deal were finalised during Zuma’s trip to Russia in August. The two sources said that Zuma subsequently instructed energy minister Tina Joemat-Pettersson to sign the deal with the Russians on the sidelines of the general conference of the International Atomic Energy Agency (IAEA) in Vienna. A joint statement issued by the Russian state-owned nuclear company Rosatom and the South African energy department on Monday said that the agreement “lays the foundation for the large-scale nuclear power plants procurement and development programme of South Africa based on the construction in South Africa of new nuclear power plants with Russian VVER reactors with total installed capacity of up to 9.6GW (up to eight [reactor] units)”. Deputy energy minister Thembisile Majola told Parliament’s energy portfolio committee, which met on Tuesday, that she had no knowledge of the nuclear deal and had first learned of it through the media. The chairperson of the committee, Fikile Majola, said that he would call Joemat-Pettersson to explain herself to the committee. “We want her to tell us the details surrounding the deal,” he said. Shrouded in secrecy Sources also said that the minister and Zuma did not take the ANC’s national executive committee (NEC) into their confidence over the matter. Four NEC members independently said that there was no mention of an impending nuclear agreement with Russia at last weekend’s meeting. One added that some senior party figures were unimpressed that Zuma, instead of resting in Russia as initially planned, had negotiated deals that had not been agreed to by the leadership. He said Zuma only gave details of the deal to his most trusted Cabinet ministers and MPs. This week’s announcement also startled politically connected nuclear lobbyists and industry insiders, some of whom frantically exchanged calls in a bid to understand its significance. A respected nuclear industry leader said the statement looked “pretty definitive”, and news that Russia had clinched a deal to build nuclear reactors blazed unchecked across radio and television bulletins, as well as social media. The announcement was followed by an apparent damage control exercise. A rival to Rosatom said that they had received written assurances on Tuesday morning from a leading member of the South African delegation to the IAEA conference in Vienna that “there will be other intergovernmental agreements signed with the other vendors before the procurement process will start”. A new statement issued solely by the department of energy on Tuesday evening said that the agreement “initiates the preparatory phase for the procurement for the new nuclear build programme”. “Similar agreements are foreseen with other vendor countries that have expressed an interest in supporting South Africa in this massive programme,” it said. “Joemat-Pettersson will lead a delegation to visit France, where bilateral discussions will culminate with the signing of a co-operation agreement between the two countries [and] the South African government is also in discussions towards concluding an intergovernmental agreement with the Chinese government.” Russia leads the race But Zuma’s personal involvement with Putin means that even if similar agreements are concluded with other states, the Russians must be considered clear frontrunners. Rosatom told the Mail & Guardian that Monday’s joint statement was “intended to solely serve as information on the agreement and not necessarily position Rosatom as a preferred bidder”. “The agreement stipulates the overall development of various fields of nuclear power industry, and supplementary agreements will be signed in each field stipulating all details,” added a spokesperson. Senior government and industry sources have been telling amaBhungane for the past 18 months that Zuma has taken a personal interest in the government’s planned procurement of 9?600 megawatts (an estimated R1-trillion’s worth) of nuclear power, regarding it as one of his “presidential legacy projects”. A senior government official said that Zuma and Putin made initial strides towards a nuclear deal at the Brics summit in Durban in March 2013, but hammered out the details during Zuma’s working visit to the Russian Black Sea resort of Sochi in May last year. The M&G reported that Zuma had slipped into the driver’s seat the following month, replacing his deputy at the time, Kgalema Motlanthe, as chair of the national nuclear energy executive co-ordinating committee. A month later, Zuma replaced energy minister Dipuo Peters with Ben Martins, in a move widely seen as being intended to tighten control over the nuclear procurement process and tie up a deal with the Russians. Joemat-Pettersson took over from Martins in May this year. Draft agreement According to the official, a draft nuclear co-operation agreement began to circulate between the Russians and the South Africans in July last year. Initiated by the Russians, this apparently sought a commitment from the South Africans to deal exclusively with them. It allegedly contained four clauses that particularly alarmed South African government officials. They included:
- Limiting South Africa to acquiring Russian reactor technology;
- Giving Russia exclusive say over the auxiliary construction contracts;
- Giving Russia a 20-year veto on South Africa doing business with any other nuclear vendor countries; and
- Making South Africa exclusively liable for all nuclear equipment procured from Russia as soon as it left that country.