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Kubayi lashes PetroSA over bonuses

Energy
Cape Town - Energy Minister Mmamoloko Kubayi has lashed out at the executives of PetroSA for paying themselves millions of rands in bonuses after the entity had suffered a financial loss of R14.5 billion.

It December it was revealed they paid themselves R17.3 million in bonuses despite the huge losses it suffered on Project Ikhwezi.

Kubayi also said in Parliament that she would not privatise PetroSA, despite its poor showing, but would strengthen its capacity.

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A file image of PetroSA. Picture: Supplied

Kubayi, who was briefing the portfolio committee on energy yesterday, said PetroSA needed to be brought into line to improve its performance and stop the losses.

She said the loss of R14.5 billion on Project Ikhwezi was a serious concern.

Kubayi said the law did not allow her to intervene at PetroSA. She could only do so through the Strategic Fuel Fund.

DA MP Gordon McKay said he supported the minister’s decision to take action against the executives for the loss.

Read also: PetroSA assets to be devalued by R1.1bn

Jan Esterhuizen of the IFP said it was unacceptable that the executives of PetroSA paid themselves R17.3 million and urged the minister to sort out the “deep rot in the Department of Energy”.

The chairman of the committee, Fikile Majola, said it welcomed the minister’s transparency about issues affecting the department and its entities.

Majola said it also backed her plans not to privatise the entity, but to focus on building its capacity.

Kubayi will deliver her maiden budget speech on May 19 in the National Assembly.

She told MPs that she would outline detailed plans on the department, projects and plans for entities under her department.

The portfolio committee also said it would spend the next two weeks discussing the budget of the department.

The loss of R14.5 billion by PetroSA led the committee to call for a forensic probe to rein in those responsible.

BUSINESS REPORT

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