Strategic oil reserve sale: ANC to rule on Tina Joemat-Pettersson

Will former energy minister Tina Joemat-Pettersson face repercussions for allowing the 2015 sale of South Africa’s oil reserves? It’s all up to the ANC, the party’s caucus in parliament says.

Damning findings on the conduct of the Strategic Fuel Fund (SFF), a division of the Central Energy Fund, and Pettersson during the transactions were made by the Western Cape High Court. The court was asked by the SFF to make a declaratory order stating these transactions were unlawful and should be reversed.

In the judgment, former SFF acting chief executive Sibusiso Gamede and Joemat-Pettersson were found to have acted unlawfully: Gamede for the series of agreements he concluded which resulted in the disposal of SA’s 10 million barrels of strategic crude oil reserves, and Joemat-Pettersson for flouting the Procurement and Financial Management Act (PFMA) and other statutes.

Asked whether they would move to act against Pettersson, acting chair of the ANC parliamentary caucus Nomfanelo Kota said they would be “guided by Luthuli House” on the matter. ANC spokesman Pule Mabe’s office promised but did not answer in this regard yesterday.

Chair for the portfolio committee on mineral resources and energy Sahlulele Luzipho called for action against those implicated.

“Action most definitely has to be done against anyone responsible for the fiasco, both political and administrative decisions. Sadly I can’t speak for the ANC except for the committee,” said Luzipho.

“We further expect the department (of energy) to update the committee on the sale and security of the strategic stock as well as the implications of judgment. This was a standing item in our committee programme prior to the court judgment.”

Luzipho said the department was due to meet the committee tomorrow and the issue would be raised. The purpose of state oil reserves were a fallback in case of financial distress brought about by a disruption in global oil markets.

At the time of the illegal transactions, the market rate was around $38 (about R585) a barrel, while the SFF sold them for a song at $28 per barrel. Several transactions believed by the court to be bribes to Gamede were noted in the judgment. Public Protector Busisiwe Mkhwebane found no wrongdoing on Joemat-Pettersson’s part in a report on maladministration and misconduct allegations against her pertaining to these transactions.

This was despite her approving the sales herself. The report focused more on Gamede against whom she made adverse findings.

– simnikiweh@citizen.co.za

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