Public Protector Lawrence Mushwana has tabled a report in Parliament blaming the PetroSA refinery for a R473-million loss during a shutdown in July 2003.
Mushwana’s report clears Minerals and Energy Affairs Minister Phumzile Mlambo-Ngcuka of any misconduct over a controversial labour and maintenance contract that was awarded by the PetroSA refinery last year.
Mushwana said his investigation had established that there was no truth to allegations that the prolonged shutdown of the PetroSA refinery at Mossel Bay in July 2003 was caused by underqualified contractors.
Mushwana’s investigation was the result of a Democratic Alliance complaint about the scheduled maintenance and subsequent shutdown of the refinery.
Among other things, it was alleged the awarding of the maintenance contract to Daluxolo Manpower Services constituted a conflict of interest, because Mlambo-Ngcuka’s brother-in-law had an interest in the company.
Mushwana found that nothing prevented a person who had a relative in government or employed by a government agency from doing business with the state.
”The duty of disclosure of an interest is on the member or employee, and cannot bind or disqualify the relative,” he said.
Mushwana’s key findings included that the minister was not involved in the awarding by PetroSA of a contract for the procurement of labour for maintenance at the refinery during May 2003.
The main causes of the refinery’s failure in July 2003 and the resulting financial loss was the incorrect installation of equipment during the maintenance programme, coupled with a failure by PetroSA to follow operating procedures, and to provide operators with adequate training. – Sapa