South Africa: DA to request treasury intervention in fuel fund deal

30 June 2016, Johannesburg –  The Democratic Alliance , DA, will submit a letter to the National Treasury requesting that the dodgy Chevron deal be investigated and prevented from going ahead. In such a dire economic climate, the government has no need to spend public money on establishing a retail presence in the fuel sector that may cost up to R15 billion.

fuel-Pump-Price-696x522This is money that could be better used on boosting economic growth, creating jobs, and delivering better services.

Our 9 June letter to the Minister of Finance, Pravin Gordhan, that requested Treasury to confirm whether it has received any funds from the illegal sale of the national fuel reserves, has not yet received acknowledgement.

This comes after it was reported that the Strategic Fuel Fund (SFF) had offered to purchase Chevron’s SA assets which include the Cape Town refinery, Durban lubricants plant and 845 retail fuel stations.

Minister Joemat- Pettersson’s stubborn determination to access the fuel sector comes on the back of a previously failed attempt by the Central Energy Fund, the parent company of the SFF, to purchase Engen’s assets and fuel stations in 2013. This R100 billion deal was blocked by Treasury and is seen by many insiders to be the reason for Mr Gordhan’s lack of reappointment as Finance Minister. The failed deal still needs to be investigated to determine whether any excessive consulting fees and payments were justified.

  • Democratic Alliance Press Release
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