Public Protector finds that the Minister of
Minerals and Energy, Ms Mlambo-Ngcuka, was not involved in the
awarding of a contract by PetroSA to a company in which her
brother-in-law, Mr V Ngcuka, has an interest
23 June 2004
The Public Protector, Adv M L Mushwana, released his Report
on an investigation into allegations of improper conduct in
connection with the maintenance shutdown at and subsequent
failure of the PetroSA refinery near Mossel Bay. The report was
submitted today to the Speaker of the National Assembly and the
Chairperson of the National Council of Provinces.
The report relates to the investigation of a complaint by the
Democratic Alliance in connection with the scheduled maintenance
and subsequent shutdown of the PetroSA refinery near Mossel Bay
in the Western Cape.
It was alleged that:
- Millions of Rand in revenue was lost at the PetroSA (�Mossgas�)
refinery after the issuing of a maintenance contract
resulted in prolonged production losses since May 2003;
- The cause of the prolonged shutdown was under-qualified
�contractors and/or staff� that used contaminated water,
which corroded the tanks of the sensitive cooling system
making it impossible to convert fuel from gas;
- PetroSA failed to ensure that the maintenance team
involved during the shutdown had the necessary skills; and
- The awarding of a contract relating to the maintenance
to Daluxolo Manpower Services constituted a conflict of
interest for the Minister, as her brother-in-law, Mr V
Ngcuka, has an interest in the company.
The investigation was conducted in terms section 7 of the
Public Protector Act, 1994. The Public Protector also considered
the provisions of the Constitution, 1996 and the Executive
Ethics Code, promulgated by virtue of the provisions of the
Executive Members� Ethics Act, 1998 that regulate the ethical
conduct of members of the Executive. It was observed that
because members of the Executive constantly find themselves in
situations where a perception of using their positions to
improperly benefit relatives or friends could be created, they
should take precautionary steps to dispel such perception.
The Public Protector found that nothing prevents any person
who has a relative in government or employed by a government
agency to do business with the state. The duty of disclosure of
an interest is on the member or employee and cannot bind or
disqualify the relative.
From the investigation it was established that the allegation
that the shutdown of the refinery was caused by under-qualified
contractors was not substantiated. It was also clear that
PetroSA had taken several steps to prevent a recurrence of the
events that caused the shutdown in July 2003.
The following key findings were made from the investigation:
- The Minister was not involved in the awarding by PetroSA
to Daluxolo Manpower Services of a contract for the
procurement of labour for maintenance at the refinery near
Mossel Bay, during May 2003;
- The awarding of the said contract did not constitute a
conflict of interest as far as the Minister was concerned;
- Incorrect installation of equipment during the said
maintenance coupled with a failure by PetroSA to maintain
the management system of operating procedures and to provide
operators with adequate training, were the main causes of
the failure of the refinery in July 2003 that resulted in a
financial loss of R473,2 million.
The Public Protector recommended that:
The Executive Management of PetroSA, in consultation with the
Board of Directors take urgent steps to:
- Ensure that the implementation of the optimized
organizational structure that was adopted by the Executive
Management is properly monitored;
- The development of improved planning and contracting
strategies for the next maintenance shutdown continues and
is finalized well in advance;
- The updating of the procedures of all departments of the
refinery is finalized and implemented; and
- All key operators at the refinery are adequately trained
in respect of relevant emergency measures and procedures.
Enquiries: Adv Stoffel Fourie: 082 333 5620
Back to Top
|
