THE interim chairwoman of the board of state oil company PetroSA has quit, plunging it further into chaos after it suspended two executive directors last month.
Nonhlanhla Jiyane resigned on Monday after clashes with board members over a letter she wrote to the Central Energy Fund (CEF) — of which PetroSA is a subsidiary — raising concerns about its intervention in PetroSA’s turnaround strategy.
CEF chairwoman Sankie Mthembi-Mahanyele on Monday confirmed Ms Jiyane’s resignation. “Yes, I did receive her resignation today but I am yet to study it,” she said.
In her resignation letter, Ms Jiyane refers to a letter from Ms Mthembi-Mahanyele, dated July 15, which she describes as “disturbing”.
“As a consequence, it has become extremely difficult for me to continue serving in the PetroSA board,” she says.
In the letter Ms Mthembi-Mahanyele takes issue with Ms Jiyane over delays in the approval of a turnaround proposal and a Project Appollo (sic).
“The apparent lack of urgency on the part of the PetroSA board is obstructing the efforts of the CEF to assist PetroSA and commence with the proposed intervention,” Ms Mthembi-Mahanyele says.
According to the CEF, the PetroSA board needs nine members to function but after the suspension of CEO Nozizwe Nokwe-Macamo and chief financial officer Lindiwe Mthimunye-Bakoro and Ms Jiyane’s resignation, it only has six.
PetroSA is due to report losses of close to R14.9bn.
Its project Ikhwezi — exploration for feedstock for Mossgas — was a huge failure as it did not find the amount of gas reserves it had hoped to.
It was also forced to abandon Project Irene, an attempt to buy retail service station network Engen and an oil refinery owned by Malaysian state-owned company Petronas.
Chairman of Parliament’s portfolio committee on energy, Fikile Majola, on Monday said the board had to be reconstituted to rescue PetroSA.
“We still hold the view that the entire board must resign and it must be reconstituted; all the remaining members must resign,” he said.
Ms Mthimunye-Bakoro is challenging her suspension, saying the bulk of the R14.9bn loss arose mostly from impairments prior to her tenure, which began 15 months ago.
She and Ms Nokwe-Macamo were first asked by the board chaired by Ms Jiyane to take “gardening leave” while an investigation was done, but refused and were later suspended.
Confidence in PetroSA’s board had been low for some time. An e-mail circulated recently by board member William Steenkamp said board members should prepare to be replaced, because parliamentarians had lost faith in them.
Ms Jiyane was part of the previous board of PetroSA that approved Project Ikhwezi in 2011, which insiders said lacked “due consideration of the risk appetite and tolerance of the company”.
Ms Jiyane had been in the position since November, following the removal of Tshepo Kgadima from the post.
by Samuel Mungadze, 28 July 2015, 06:30
A chimney flares at PetroSA’s Mossgas facility in Mossel Bay. Picture: THE TIMES
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xanadu4 hours ago
Would that it could make a difference
Would that it could matter
Given that their proven role
Is clearly idle chatter.
Paid out of the public purse
Their duties they have failed
Leaving us to face up to
Another train derailed.
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2 replies
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Robesspear3 hours ago
Brilliant!
Reply
2
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sstiles2 hours ago
Lovely Xanadu!
I wonder what new ANC crisis today will provide material for tomorrow – it is endless!
Reply
0
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ATTIETHEBULL3 hours ago
Eskom=Loadshedding
Water Affairs=water shedding
ANC=money shedding
Trade unions Cosatu=Job Shedding
Reply
2 replies
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Mickeyt13 hours ago
And PetroSA=boardshedding !
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1 reply
4
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Stroomop17 minutes ago
PRASA = Fraudshedding. (come to think of it, SABC also = Fraudshedding)
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0
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BakkiesAteMyHamster3 hours ago
Say it with me: “We have a good story to tell!” – cANCer
Reply
2
0
Heretic2 hours ago
And the band played on!
Reply
0
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mccaffs2 hours ago
I fink we need another task team …….
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SMoloko2 hours ago
This is what happens when the selection critrea to serve on the Executive and Boards of SOEs are not related to the roles to be occupied by the individuals but are based on one’s proximity to power. This is th highest country risk and biggest threat to to our constitutional democracy, KLEPTOCRACY!
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mccaffs2 hours ago
we need the rest of the furniture to go …..
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0
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zipho51 minutes ago
if the selection criteria is based on race not qualifications and skill, we should brace ourselves for more failures with the leadership of PetroSA….this is becoming embarrassing more than dissapointing
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