PetroSA under fire

ENERGY Minister Mmamoloko Kubayi has lashed out at the executives of PetroSA for paying themselves millions of rand in bonuses after the entity had suffered a financial loss of R14.5 billion.

It December it was revealed that they paid themselves R17.3 million in bonuses despite the huge losses it suffered on Project Ikhwezi.

Kubayi also said in Parliament that she would not privatise PetroSA, despite its poor showing, but would strengthen its capacity.

Kubayi, who was briefing the portfolio committee on energy yesterday, said PetroSA needed to be brought into line to improve its performance and stop the losses.

She said the loss of R14.5bn on Project Ikhwezi was a serious concern.

Kubayi said the law did not allow her to intervene at PetroSA. She could only do so through the Strategic Fuel Fund.

DA MP Gordon McKay said he supported the minister’s decision to take action against the executives for the loss.

Jan Esterhuizen of the IFP said it was unacceptable that the executives of PetroSA paid themselves R17.3m and urged the minister to sort out the “deep rot in the Department of Energy”.

The chairman of the committee, Fikile Majola, said they welcomed the minister’s transparency about issues affecting the department and its entities.

Majola said they also backed her plans not to privatise the entity, but to focus on building its capacity.

Kubayi will deliver her maiden budget speech on May 19 in the National Assembly.

She told MPs that she would outline detailed plans on the department, projects and plans for entities under her department.

The portfolio committee also said it would spend the next two weeks discussing the budget of the department.

The loss of R14.5bn by PetroSA led the committee to call for a forensic probe to rein in those responsible.