Ruth Bhengu could face 2 sets of investigators

Oil deal ANC MP made with taxi council a ‘conflict of interests’, say papers before Labour Court

NC MP and chairwoman of the Transport Portfolio Committee, Ruth Bhengu, faces up to two parallel investigations over her alleged “improper conduct” on an oil deal plan between her company and a taxi body.

Bhengu’s company Riblore 22, negotiated with the SA National Taxi Council (Santaco) to supply oil that would be sold to taxi owners across the country.

The committee chaired by Bhengu has oversight over the Department of Transport, which funds Santaco through a black empowerment initiative, opening the possibility of a conflict of interests.

This week the Public Protector Thuli Madonsela confirmed that an investigation had started against Bhengu regarding her alleged conflict of interests.

“The investigation against the Chairperson of the Transport Portfolio Committee Ms Ruth Bhengu has started but is still in its initial stage,” said Madonsela’s spokeswoman Kgalalelo Masibi.

Bhengu confirmed to the Saturday Star last year that her company had negotiated with Santaco Trading – an investment arm of the taxi body – to ensure bulk supply of petroleum to the taxi industry.

“Those negotiations were on a possible wholesale to filling stations, part of the value chain. I would not elaborate on details of such negotiations due to the fact that it is a matter that is alleged to be in a court of law and I would rather put my side of the story there.”

AShe added at the time that her understanding was that Santaco was funded by the Department of Transport. Her interest in Riblore 22 was declared before the joint committee on ethics and members’ interests this year. She owns 40 percent of the company described as a bulk petroleum supplier (BPS) and declared that she had earned only R40 from it.

But last week, Fazela Mahomed, registrar of members’ interests, told the Joint Standing Committee on Ethics and Members’ Interests that three ANC MPS, including Bhengu, had been asked to respond to allegations reported in the media.

Mahomed said the committee would decide whether to investigate further after studying the MPS’ responses to the allegations.

If found guilty by the committee Bhengu could be fined an equivalent of a month’s salary and reprimanded by the Speaker of Parliament.

The Saturday Star reported last year how a disgruntled former employee of Santaco – Stanley Seiti – had in papers before the Labour Court blown the lid on a massive oil deal plan.

Seiti accused suspended Santaco president Jabulani Mthembu, chief executive Bongani Msimang and Bhengu of “corruption”. “The CEO (Msimang) and the president (Mthembu) were informed that such a relationship (between Bhengu’s company and Santaco) was improper as it most possibly presented a serious conflict of interests,” he said. “It is scandalous and clear corruption of head of the portfolio committee that ultimately approves Mthembu’s salary to pursue clandestine relationships and seek close self enriching deals with beneficiaries of a committee she presides over.”

Seiti charged in his papers that Bhengu’s oversight role in Parliament of the Department of Transport from where Santaco derives most of its funding, constituted a “conflict”.

Seiti was fighting his dismissal from Santaco claiming he had been victimised after he had come across the damning draft of a memorandum of agreement and referral agreement between Bhengu’s company, Santaco Trading, Mthembu and Msimang on the import of crude oil deal.

He claimed that Santaco had recently even managed to make its own representation to the portfolio committee introduction its 2020 strategy to the committee which Bengu presides over.

Yesterday, co-chairman of the Joint Committee on Ethics and Members’ Interests, Ben Turok confirmed the committee was looking into Bhengu’s matter. “The matter has just arrived. We haven’t discussed it properly. We will let you know, once we have done so, what the decision is,” he said.