“Oilgate”: DA requests Mahlobo to halt R2.1 million gratuity to Joemat-Pettersson

The DA has today written to Energy Minister, David Mahlobo, requesting him to suspend his Department’s R2.1 million “once-off-gratuity” to former Minister Tina Joemat-Pettersson.

[Details of the R2.1 million payout in the adjusted budget of the Department of Energy can be found here]

We believe that this R2.1 million payment should not proceed at least until such a time that Ms. Joemat-Pettersson is cleared of wrongdoing for the sale of South Africa’s strategic oil reserves in December 2015.

It would be wrong to give former Minister Joemat-Pettersson a R2.1 million golden handshake when she personally authorised the unlawful sale of our oil stocks at bargain basement prices.

The cost of this dodgy deal is estimated to have cost the public purse in the region of R2 billion.

Joemat-Pettersson authorised the sale of the oil reserves without the concurrence of then Finance Minister, Pravin Gordhan, as required by the Central Energy Fund Act.

What is more, Minister Joemat-Pettersson appeared to have lied to Parliament about the sale in 2016, claiming it was a mere “rotation of stock”.

Minister Mahlobo recently admitted that the sale of our oil stocks is going to cost the government a great deal of money, and appears committed to investigating the illegality of the sale by the end of December this year.

There is a chance that Joemat-Pettersson will be criminally and financially liable for this unlawful deal. It would therefore be prudent for Minister Mahlobo to place a moratorium on any gratuity to Joemat-Pettersson until the investigation is concluded.

Statement issued by Gavin Davis MP, DA Shadow Minister of Energy, 1 December 2017