Mbete deal must be investigated

According to the Mail and Guardian today, a top New York law firm has found that ANC National Chairperson, Baleka Mbete threatened to scupper the issuing of a Goldfields mining licence unless her shareholding was increased in an empowerment deal (see here).

If true, Mbete's conduct may amount to criminal conduct, and should be investigated.

Former Goldfields Chair, Mamphela Ramphele has in the past accused the Department of Mineral Resources (DMR) of forcing the company to select certain empowerment partners. The involvement of the DMR in such deals is unethical.

The DA will submit parliamentary questions to the Mineral Resources, Susan Shabangu to determine:

• Whether or not the DMR did pressure Goldfields to include certain people in its empowerment scheme; and
• Whether she approves of such pressure being exercised.

Unless government moves to restore credibility to its system of awarding mining rights, South Africa will not attract investment from credible investors. A failure to attract investment will result in a shrinking mining industry, lost jobs and declining tax revenues.

Statement issued by James Lorimer MP, DA Shadow Minister of Mineral Resources, September 6 2013

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