Evidence wa ka Ngobeni
Minister of Defence Mosiuoa Lekota this week backtracked on his decision to appoint Seth Phalatse as the new chairperson of the Armscor, the state arms procurement company, and withdrew the appointment.
His turnabout followed the Mail & Guardian report last week revealing how Phalatse had admitted to taking a $20?000 (about R165?000) cash bribe in May last year while chairperson of the Strategic Fuel Fund.
On Thursday Lekota said: “In light of the public reaction to the appointment of Seth Phalatse I felt obliged to take a second look at the circumstances surrounding his position at the Strategic Fuel Fund Board. Consequently, I have concluded that some remedial action is necessary.
“I have therefore decided to withdraw his appointment as chairperson of the Armscor board and have appointed Sindi Mabaso as acting chairperson.”
Lekota confirmed, however, that Phalatse would stay on as an ordinary board member of Armscor.
Lekota’s decision has caused some surprise. Last week, after consulting with Lekota, his spokesman Sam Mkhwanazi told the M&G the minister was aware of the allegations against Phalatse but convinced it would “become clear that this was a correct appointment”.
Phalatse and the entire board of the Strategic Fuel Fund (SFF), the state oil storage and trading company, were axed by the Minister of Minerals and Energy, Phumzile Mlambo-Ngcuka, last December.
This followed a scandal in which the state oil company contracted out a large oil transaction against Mlambo-Ngcuka’s orders. It is alleged Phalatse and other officials accepted large cash bribes for doing so. They allegedly negotiated a deal with Trafigura, an international oil trading company based in London.
In an affidavit submitted to investigators of the oil deal, Phalatse gives details of how he soon had second thoughts about his acceptance of the bribe and returned the money. Three months later he confessed to Mlambo-Ngcuka. He is expected to be a state witness when the matter comes to trial.
Others involved in the bribe scandal include black empowerment icon Keith Kunene, who was Central Energy Fund chair. According to Phalatse’s affidavit, Kunene accepted a similar bribe and acted as a channel for the bribes.
Phalatse is also the director of government affairs and Africa sales at BMW South Africa. His abbreviated curriculum vitae released by Armscor last week failed to make any reference to his stint in the state oil sector.