Dead in the Water: Court Sinks South Africa’s R200 Billion Karpowership Deal

A three-year battle ends in victory for civil society and a warning shot to dodgy public-private deals

In a landmark victory for transparency and public accountability, the Pretoria High Court has officially pulled the plug on one of South Africa’s most controversial energy projects: the R200 billion Karpowership deal.

The court ruled on Thursday, 31 July, that the electricity generation licences granted to the Turkish-owned Karpowership by the National Energy Regulator of South Africa (Nersa) are now invalid, bringing to a dramatic close a saga that’s been smouldering since 2021.

What was the Karpowership deal all about?

As South Africa’s load shedding woes deepened, the Department of Energy scrambled for quick fixes. One of them was the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), a mouthful of a plan launched in 2020 to bring emergency electricity to the grid.

Among the “preferred bidders” was Karpowership, a Turkish company that operates gas-powered floating power stations. The plan? Anchor three of these massive ships at South African ports for 20 years to feed energy into the grid. Total projected cost? A jaw-dropping R200 billion.

At face value, it seemed like a lifeline. But critics saw it for what it really was: a rushed, opaque deal that threatened to saddle taxpayers with billions in costs, environmental harm, and serious questions about procurement ethics.

Public watchdogs bite back

The Organisation Undoing Tax Abuse (Outa), a fiercely independent civil society group, took up the fight in April 2022. Their legal challenge argued that the licences were rushed through without proper environmental clearances, port permissions, or signed agreements with Eskom.

On top of that, they flagged pending criminal investigations linked to the Karpowership entities.

Despite multiple setbacks, court delays, and bureaucratic stonewalling, Outa pressed on. Even when Karpowership and its lawyers withdrew from the case after the entities were liquidated in June 2025, Outa insisted the matter be heard and officially resolved in court.

Court says: Not so fast, Nersa

In its judgment, the Pretoria High Court agreed. It reviewed and set aside all three generation licences granted to Karpowership. The court also ordered Nersa to cover the legal costs, a strong rebuke that signalled the seriousness of the regulatory failure.

“This ruling is a powerful affirmation that decisions involving billions in public funds must comply with the law,” said Advocate Stefanie Fick, Executive Director at Outa.

Her words cut to the heart of the issue: this wasn’t just a legal matter—it was a lesson in governance.

The social media verdict

Online, the reaction was swift and full of sighs of relief. On X (formerly Twitter), hashtags like #Karpowership and #OutaVictory trended, with users celebrating the end of what many called “state capture by ship.”

Others praised Outa’s persistence, with one user writing: “Three years. One NGO. Zero power ships. That’s how you fight corruption.”

For a country tired of scandals, from Eskom’s crumbling infrastructure to overpriced PPE contracts, this felt like a rare win for the people.

With Karpowership officially out of the picture, the government will need to go back to the drawing board. South Africa still faces a critical energy shortage, but if anything, this case shows that desperation must never override due process.

The court’s decision also sets a powerful precedent: emergency or not, public funds cannot be gambled away under the guise of urgency.

The Karpowership saga may have reached its conclusion in the courts, but its legacy will linger as a cautionary tale. For now, at least, South Africans can rest easy knowing they won’t be paying for power that never docked.

This isn’t just about electricity. It’s about accountability. And this time, the law won.

{Source: The Citizen}

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