Xolani Mkhwanazi. Via WhosWho
CAPE TOWN - While KPMG is under severe  attack from South African  companies for allegedly  being involved in irregular  transactions, it is also a good  time to look at alleged irregularities  a bit closer to home.

In the case of KPMG, we  are talking about a few billion  rand, but in the case of  PetroSA, we are talking losses  of R14.6 billion or almost  R20bn in two years. 

Remember  the sudden resignation of  PetroSA’s acting group chief  executive, Mapula Modipa,  “for personal reasons”, after  being at the helm of the company  from May 2015?

And another former  PetroSA manager that has  been arrested on fraud,  theft and money laundering  charges, Matshidso Eunice  Mogashoa, the former corporate  social investment manager,  that is alleged to have  defrauded PetroSA of more  than R60 million?

She was released on R5 000  bail after allegedly committing  fraud between 2007 and 2011.

PetroSA reports to the  Central Energy Fund (CEF),  which also oversees the functioning  of the Strategic Fuel  Fund (SFF). 

This state-owned  energy company has a track  record of alleged corrupt  transactions for many years.

Wholly owned subsidiaries  operating under CEF  are PetroSA, the SFF, which  manages strategic crude oil  infrastructure, strategic  crude oil stocks and provides  oil pollution control services  in Saldanha Bay, iGAS  which is a shareholder in the  Mozambique-to-South Africa  gas pipeline and is involved  in the development of other  gas delivery projects, and  AEMFC which mines coal in  Mpumalanga for supply to  Eskom.

In the news  The SFF has been in the news  recently for the illegal sale  of 10-million barrels of the  country’s strategic oil reserve  in December 2015.

More controversial is  the constant firing of board  members of the CEF, SFF  and PetroSA. Previous  Minister of Energy, Tina Joemat-Pettersson, fired the  chairperson of CEF, Xolani  Mkhwanazi, not so long ago  “for his role in the aborted  attempt by SFF to acquire the  South African assets of US oil  company Chevron in June. 

Mkhwanazi  has then been  appointed deputy chairperson  of the Public Investment  Corporation (PIC). His late  brother, Don Mkhwanazi, was  also fired as chairperson of  both CEF and SFF some years  ago for alleged corrupt transactions  amounting to billions.  Mkhwanazi certainly maintains  his controversial status  in the media.

According to a Business  Times article yesterday “PIC  chairperson, Sfiso Buthelezi,  and deputy chairperson,  Xolani Mkhwanazi, and Finance  Minister Malusi Gigaba have  been battling to clear their  names from accusations that  they are facilitating an elaborate  plot to gain access to funds  under the PIC’s management  for nefarious ends.”

Adri Senekal de Wet is Executive Editor: Independent Media. Editor: Business Report & Personal Finance.

-BUSINESS REPORT