SA state owned company set for record multi-billion rand loss

The Democratic Alliance says government-owned petroleum oil and gas corporation, PetroSA cannot be allowed to follow the likes of other SOE’s such as Eskom, SAA and SAPO, and degenerate into a financial black hole.

It follows reports on Thursday that PetroSA will suffer a R14.9 billion loss for the 2014-15 year, making it the biggest annual loss incurred by any state-owned company.

The embattled entity is also set to miss all but one of its performance targets for the 2014-15 year, the DA noted.

Several executives, including CEO Nosizwe Nokwe-Macamo were suspended earlier this month, pending an investigation into the company’s poor performance.

DA shadow deputy minister of energy, Pieter van Dalen, said he will write to the Chairperson of Parliament’s Portfolio Committee on Energy, Fikile Majola, to request that he summon the Minister of Energy, Tina Joemat-Pettersson, to appear before committee and account for the financial state of PetroSA.

“Instead of dealing with the entities falling apart at the seams on her watch, Minister Joemat-Pettersson is jet-setting around the world in her relentless crusade to tie our country to a secretive multi-billion rand nuclear deal. This is simply unacceptable and the Minister must be brought to book on this dereliction of duty,” van Dalen said.

According to the DA, PetroSA squandered R7.6 billion last year alone in terms of wasteful and irregular expenditure – a clear illustration of the internal disarray within the entity and its leadership structure.

Joemat-Pettersson  said that South Africa will start a nuclear build programme in 2015, in a bid to generate an additional 9,600MW of electricity – amid a current power crisis.

The country will have six new nuclear power plants by 2030, which will cost between R400 billion and R1 trillion to build, according to a report by Reuters.

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SA state owned company set for record multi-billion rand loss