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- The Western Cape Superior Court issued a ruling reversing the sale of SA’s strategic crude oil reserves that took place in 2015.
- In a joint statement, the Strategic Fuel Fund and the Central Energy Fund say there will be consequence management for the employees involved.
- The SFF will reimburse the money with the accrued interest.
The Western Cape Superior Court has entered a ruling, reversing a 2015 sale of SA’s strategic crude oil reserves, which was possibly below market value and cost the country financial losses.
The Central Energy Fund (CEF) and its subsidiary, the Strategic Fuel Fund (SFF) issued a statement on Friday, welcoming the ruling.
The matter was heard in high court in September. In 2015, the SFF had sold 10 million barrels of strategic crude reserves to nine oil traders for R5 billion, considered well below market value. It is estimated that replacing the shares will cost R7 billion, Fin24 previously reported. According to CEF and SFF, the former SFF CEO Sibusiso Gamede had illegally concluded the sale of the deals. Tina Joemat-Pettersson was Minister of Energy at the time.
“We are vindicated by this ruling of the high court. If these illegal transactions were not questioned, the country would have suffered huge financial losses given the price of repurchase of oil reserves at current market rates,” said the current director general of the SFF, Godfrey Moagi. .
“As a company, we would ensure that all measures are in place to institute consequence management against all employees cited in the case for wrongdoing, particularly those who are still employed by SFF,” Moagi said.
All traders agreed that the beer from the oil reserves was invalid, as part of the higher court settlement, the SFF will refund the money with the accrued interest.
All traders have agreed that the sale of the strategic crude oil reserves was invalid, and as part of the higher court settlement, the Strategic Fuel Fund (SFF), a subsidiary of CEF, would refund all money that was paid to it with accrued interest.
The merchants were awarded a coverage loss award, but CEF and SFF are seeking legal advice with the intention of appealing.
The Minister of Mineral Resources and Energy, Gwede Mantashe, previously told Parliament that the “culprits” of the matter will be dealt with.
