A-G confirms investigation into unlawful sale of fuel stocks

21 June 2016

The DA is pleased to receive confirmation from the Auditor-General (A-G), Mr Makwetu, stating that the allegedly unlawful sale of fuel stocks will be investigated as part of his statutory audit for the 2015/2016 financial year.

This comes after allegations that the Minister of Energy, Ms Joemat-Pettersson, and Central Energy Fund (CEF) Chief Executive, Mr Sibusiso Gumede’s, colluded without permission from Treasury to sell R5 billion worth of fuel stock/reserves contravened section 54(2d) of the PFMA.

Although the DA would have preferred a more focused and separate investigation outside the realm of the statutory audit; we, in any event, welcome that the egregious allegations of selling fuel stocks without the consultation of Treasury will be investigated. 

We are still expecting a response from the Minister of Finance, Pravin Gordhan,  regarding our 3 June 2016 letter seeking clarity as to whether National Treasury (NT) received any of the money from the unlawful sale of our fuel stocks and whether it will be taking any disciplinary action against Minister of Energy, Ms Tina Joemat-Pettersson, for contravening the Public Finance Management Act (PFMA) in this transaction.

According to the PFMA, section 54(2d):“Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the transaction: (d) acquisition or disposal of a significant asset.

The DA will be urging the A-G to table its report in Parliament upon its completion as prescribed by the Constitution, for all Chapter 9 institutions. 

We will be keeping close watch of any misconduct by government officials who without consultation sell state apparatus without the consultation of NT. We will relentlessly seek that transgressors of the PFMA be held accountable and that state funds are judiciously spent for the sake of all South Africans.

Issued by Pieter Van Dalen, DA Shadow Deputy Minister of Energy, 21 June 2016