Mungo Soggot
The Minister of Minerals and Energy, Penuell Maduna, has ordered a full investigation into the award of a R3- million state oil job to Liberia’s former finance minister, Emanuel Shaw II.
Maduna – who also sought advice from Shaw last year – is understood to have been startled when he learnt of the appointment in July. He immediately advised the Liberian to reject the job, but Shaw refused.
Maduna has now told his officials to probe Shaw’s contract. The results of the probe will be made public.
The minister’s department this week accused state oil company chair Don Mkhwanazi of riding roughshod over standard procedures to give the job to Shaw.
And the deputy director general of minerals and energy, Gordon Sibiya, is to quit as board member of the state oil company, the Central Energy Fund (CEF), after leading the attack against Shaw’s appointment.
“I have a lot of important work I am doing for my minister in the department. For this reason and for the sake of peace between Mkhwanazi and myself, I have decided to approach the minister shortly, requesting him to relieve me of my duties as a member of the board of the CEF,” Sibiya said.
The department was not informed that Shaw was also employed as a consultant by a listed oil company, Engen – which represented a clear conflict of interest. Shaw’s brief at the CEF includes its possible privatisation. The state oil company also regulates the profits earned by petrol companies in South Africa. “Good grief,” Sibiya said, when informed of Shaw’s Engen work.
Sibiya also dismissed Mkhwanazi’s main defence of Shaw’s appointment – that it was an everyday management issue which did not need the approval of the fund’s board
Sibiya said Mkhwanazi had no authority to appoint Shaw’s little-known company, International Advisory Services, without seeking the approval of the board of the fund or the department. Mkhwanazi should have also put the job out to tender.
“It [restructuring] is the one issue that involves the board and other government task teams which deal with restructuring. Mkhwanazi is obviously not aware of government guidelines on restructuring. I would like to know who has given him these sweeping powers.”
Engen’s human-resources department has confirmed Shaw started working there last year, helping them forge ties in Africa.
It is believed Maduna may have been tipped off about Shaw’s background by the National Intelligence Agency.