/ 11 February 2006

SA probe into oil-for-food scandal

President Thabo Mbeki has appointed a commission of inquiry into the alleged corrupt involvement of South African companies in the United Nation’s oil-for-food programme.

Advocate Michael Donen SC would chair the commission, with advocate Khehla Chauke and Senior Superintendent Lucy Moleko as additional members, the Presidency said on Friday.

Mbeki’s decision — four months after the release of a United Nations report detailing the involvement of several countries in the scandal — was no cause for alarm, said presidential spokesperson Mukoni Ratshitanga.

The report implicated Imvume, its chief executive Sandi Majali and Tokyo Sexwale’s Mvelaphanda Holdings. They have denied any involvement in the scandal.

”I don’t think we should be alarmed by the commission being set up now when the report was released in November. The president cannot just receive something like that and jump to conclusions,” said Ratshitanga.

The report by the UN’s Independent Inquiry Committee focused on former Iraqi President Saddam Hussein’s efforts to bypass international sanctions by soliciting aid in exchange for oil contracts.

Deputy Foreign Affairs Minister Aziz Pahad said in November last year he was ”not convinced of any violation … by South African companies”.

Pahad added that he was convinced Foreign Affairs’ foreign policy objectives had nothing to do with linking South African initiatives in Iraq with the oil programme.

The UN report provided ”strong evidence” of potentially unlawful dealings by four South African companies, DA leader Tony Leon said in November.

Other countries mentioned in the report included Australia, Germany, Jordan, New Zealand, Russia, Switzerland and Thailand.

The DA said it was a blight on South Africa’s good name that the government had taken so long to swing into action.

”President Mbeki’s announcement … should be followed with all haste by the Justice Minister’s announcement of the terms of reference,” the DA’s spokesperson on justice, Sheila Camerer, said in a statement. – Sapa