[Maybe she is innocent… or maybe she was let go with a quiet wink… Jan]

Mineral and Energy Affairs Minister Phumzile Mlambo-Ngcuka was not involved in the awarding of a PetroSA contract to a company in which her brother-in-law had an interest, says Public Protector Lawrence Mushwana.

Mushwana’s report, tabled in parliament on Wednesday, related to a complaint by the Democratic Alliance about the scheduled maintenance and subsequent shutdown last year of the PetroSA refinery near Mossel Bay.

The allegations included that:
Millions of rands in revenue was lost after the issuing of a maintenance contract resulted in prolonged production losses at the Mossgas refinery since May 2003;

The cause was as a result of under-qualified contractors and/or staff that used contaminated water;

PetroSA failed to ensure that the maintenance team involved during the shutdown had the necessary skills; and

The awarding of the maintenance contract to Daluxolo Manpower Services was a conflict of interest for the minister, as her brother-in-law Vuyani Ngcuka had an interest in the company.

Mushwana said nothing prevented any person who had a relative in government to do business with the state. “The duty of disclosure of an interest is on the member or employee, and cannot bind or disqualify the relative.”

Mushwana said the allegation that the shutdown was caused by under-qualified contractors was not substantiated.

“It was also clear that PetroSA had taken several steps to prevent a recurrence of the events that caused the shutdown in July 2003”.

Mushwana found that the minister was not involved in the awarding of the contract or that it constituted a conflict of interest as far as Mlambo-Ngcuka was concerned.

“Incorrect installation of equipment during the said maintenance, coupled with a failure by PetroSA to maintain the management system of operating procedures, and to provide operators with adequate training, were the main causes of the failure of the refinery that resulted in a loss of R473,2-million.”

DA MP Craig Morkel, who submitted the original complaint, said the question remained as to who should be held responsible.

“Is it the people who have already left PetroSA?” he asked, referring to its former managing director Mpumelelo Tshume.

Morkel said he had yet to study the report and would comment later.

This article was originally published on page 1 of The Star on June 24, 2004

Source: Independent Online (IOL)
URL: http://www.iol.co.za/index.php?set_id=1&click…/p>