PetroSA expected to post loss of R15bn

African News Agency

A PROBEinto the cause of state-owned petroleum company PetroSA’s financial woes, which would see it declare a multibillion-rand loss for the 2014/15 financial year, was due to be completed by the end of the month, Energy Minister Tina JoematPettersson said yesterday.

In a written reply to a parliamentary question, Joemat-Pettersson confirmed the company was expected to post a loss of R15 billion.

“In discharging its fiduciary duty, the board of directors of PetroSA resolved to conduct an investigation into the causes of the substantial loss and PetroSA’s poor performance as well as the role played by PetroSA’s executive team, including the group chief executive officer, the group chief financial officer and the vice-president,” Joemat-Pettersson said.

“The board formed the prima facie view that PetroSA’s poor financial performance was, at least in part, attributable to the three executives, given their role, duties and responsibilities as employees of PetroSA.”

PetroSA chief executive Nosizwe Nokwe-Macamo and chief financial officer Lindiwe Mthimunye-Bakoro are currently on suspension pending the outcome of the probe.

Andrew Dippenaar, the company’s vice-president for upstream operations, is currently on forced leave.

Joemat-Petterson said the probe into the cause of PetroSA’s financial troubles and the role the executives played in that would take about two months.

“At this stage, it is anticipated that the investigation will be completed towards the end of August,” she said.

“In the light of the fact that the investigation is still under way, no results are available.”