/ 3 August 2005

Oilgate laid to rest, says Cabinet

The so-called Oilgate scandal has been laid to rest as it relates to the government, government communications head Joel Netshitenzhe said on Wednesday.

Briefing the media after Cabinet’s fortnightly meeting, Netshitenzhe said the Cabinet noted and accepted Public Protector Lawrence Mushwana’s report on the matter.

”While government had always understood that the allegations of improper conduct on the part of state officials were unfounded, we do appreciate that this matter, as it relates to government, has been laid to rest.”

The Cabinet respects the authority and integrity of the constitutional bodies set up to protect democracy, and hopes that ”the same principles will be observed by other institutions in our society”, Netshitenzhe said.

The African National Congress was reported by the Mail & Guardian to have been paid R11-million by empowerment company Imvume Management, before last year’s elections.

The R11-million was alleged to have been from an advance payment of R15-million Imvume had received from PetroSA to procure oil from supplier Glencore, which Imvume allegedly never supplied.

In his report released last week, Mushwana said the ANC and Imvume are not public entities, did not perform public functions, and are not part of any level of government.

It had also been alleged that Deputy President Phumzile Mlambo-Ngcuka (during her term as minister of minerals and energy) improperly influenced PetroSA’s decision to make the advance payment to Imvume.

Mushwana’s report stated such allegations made against Mlambo-Ngcuka were not substantiated and without merit.

However, on Monday the Freedom Front Plus laid charges against Imvume at a Cape Town police station, and the Democratic Alliance asked for meetings with the National Prosecuting Authority (NPA) and the South African Revenue Service on the issue.

”The FF+ is convinced that a prima facie case of fraud exists against Imvume Management, as it appears from statements of PetroSA, as well as the report of the public protector, that Imvume convinced PetroSA to pay R15-million, to its detriment, to Imvume, based on certain pretences by Imvume,” the FF+ said.

DA MP Helen Zille said the party would make an appointment with the NPA in a bid to have it investigate Imvume’s alleged wrongdoings and contact the South African Revenue Service to establish if Imvume had paid tax on its R11-million donation to the ANC.

On Wednesday, Netshitenzhe said the National Prosecuting Authority could look at the matter further, but he expressed concern that it may be a ”vexatious” complaint and that some political parties are trying to ”hog the limelight” over the matter. — Sapa, I-Net Bridge