Committee will probe department in Zwane inquiry
Parliament’s mineral resources committee has in principle adopted the terms of reference for its inquiry into the activities of former mineral resources minister Mosebenzi Zwane.
This follows allegations that Zwane was closely linked with the Guptas and that he acted in their interests, particularly in regard to the sale by Glencore of its coal mine assets to the Gupta-owned Tegeta Exploration and Resources.
In her report on state capture released in October 2016, former public protector Thuli Madonsela referred to prima facie findings that pointed to possible governance failures and maladministration within the Department of Mineral Resources. These included information relating to issues of conflict of interest centred on Zwane’s conduct.
The terms of reference proposed by Parliament’s legal adviser Fatima Ebrahim stipulate that the inquiry into Zwane will investigate the alleged governance failures and maladministration at the department.
The committee considered these proposals on Wednesday.
In particular, the inquiry will focus on Zwane and the department’s roles in facilitating the sale of Glencore assets to Tegeta. It will also look into the alleged noncompliance with the Public Finance Management Act with regard to fruitless and wasteful expenditure pertaining to travel arrangements that the department made for Zwane.
It is proposed that the inquiry will also probe the alleged breach by Zwane of the Constitution and the Executive Members Ethics Act as regards conflict of interest.
In addition, the spotlight will be on the department’s handling of mining-rehabilitation funds, as well as alleged noncompliance with the Mineral and Petroleum Resources Development Act and the National Environmental Management Act and the Income Tax Act. Furthermore, the terms of reference will require the inquiry to look into whether the appointment and dismissal of officials in the department were subject to external undue influence.
However, the terms of reference do not include Zwane’s alleged involvement in the Vrede dairy project when he was MEC for agriculture in the Free State provincial government.
The Guptas were the alleged beneficiaries of the R250m project.
The committee will limit its investigation to the area of its jurisdiction, namely the Department of Mineral Resources.
Committee chairman Sahlulele Luzipo raised the problem of a potential overlap between the committee’s inquiry and that being conducted by the commission of inquiry into state capture.
But Ebrahim said this was covered by the separation of powers, which gave Parliament the right to conduct its own inquiry.