PetroSA chairman dumped over controversy

PetroSA oil rig.

PetroSA oil rig.

Published Nov 27, 2014

Share

Johannesburg - The Central Energy Fund (CEF) has rescinded the appointment of Tshepo Kgadima as chairman and director of state-owned oil and gas company PetroSA.

“In light of the current controversy the board felt it would be impossible for Mr Kgadima to carry out the responsibilities of the chairperson of PetroSA effectively,” Sankie Mthembi-Mahanyele, chairperson of CEF, which manages government energy interests, said in a statement.

“The primary interest of the board is to ensure that all entities in the group are stable, well-managed and focused on CEF's primary role which is to contribute to the country's security of energy supply.”

According to reports, Kgadima was allegedly involved the loss of millions of rand by investors while he was chief executive and president of LontohCoal.

The reports further state that Kgadima was recommended for the post of PetroSA chairman - along with three other candidates - by Energy Minister Tina Joemat-Pettersson, in a letter sent to Mthembi-Mahanyele on October 10.

Last week, Kgadima was reportedly escorted out of the Business Day office's in Rosebank, Johannesburg after he refused to leave when a visit to editor Songezo Zibi deteriorated into a confrontation.

The newspaper reported that Kgadima arrived at the office and was invited to answer questions on the claims that he had swindled money out of prominent politicians and investors in mining projects which did not exist.

However, Kgadima reportedly insisted on interrogating Zibi on whether or not he adhered to the press code.

Nonhlanhla Jiyane has been appointed as interim chairwoman of PetroSA, the CEF said.

“Existing vacancies on the PetroSA Board will be filled in the near term.”

LontohCoal suspended a plan for a $1 billion (R11 billion) initial public offering in Hong Kong in 2012.

Kgadima told Bloomberg News in an interview that it planned to develop a coal mine in Zimbabwe. - Bloomberg News and Sapa

Related Topics: