Public hearings to probe South Africa’s alleged illicit payments of oil surcharges and kickbacks to the former Iraqi regime under the United Nations’s oil-for-food programme will start next month.
The Donen commission, which will start the hearings on May 8, said on Friday subpoenas were being served on key witnesses identified by its investigation so far.
”The investigation is a matter of public concern. Such payments contravened resolutions of the United Nations Security Council which bound South Africa,” it said.
The commission’s terms of reference include establishing the truth of allegations against eight South African companies and certain individuals in a report of an independent inquiry committee established by the UN.
It also has to establish whether the conduct of any company or person amounts to any offence that may be tried in a South African court.
It must also propose actions needed in respect of any offence, contravention or violation, and must propose steps to be taken against persons or companies under South African jurisdiction from getting involved in sanction busting in the future.
Four South African companies have been implicated by the committee’s report in relation to the payment of oil surcharges. They are Montega Trading, Imvume Management, Mocoh Services South Africa and Omni Oil. Individuals implicated include Sandi Majali, Michael Hacking and Shaker Al Khafaji.
The four companies implicated in the payment of kickbacks on humanitarian aid are Ape Pumps, Flacon Trading Group, Glaxo Wellcome South Africa and Reyrolle Limited.
The UN Security Council established the oil-for-food programme in the 1990s to alleviate the effect of sanctions against Iraq on its civilians. It set below-market rates and kept the proceeds in an account from which it bought food and medicine.
The UN committee, appointed by UN Secretary General Kofi Annan in 2004, gave details in its report on former Iraqi president Saddam Hussein’s efforts to bypass international sanctions by soliciting aid in exchange for oil contracts.
It found that Majali and two of his companies — Montega and Imvume — ”profited from Iraq’s efforts to deliver business opportunities to South Africa in return for political support”.
Majali reportedly posed as President Thabo Mbeki’s adviser.
The hearings will be held at the Diep in die Berg Conference and Function Centre at Wapadrand near Pretoria.
The Democratic Alliance welcomed the announcement of a starting date for the probe, but repeated concerns over the commission’s terms of reference and chairmanship.
Party justice spokesperson Sheila Camerer said the terms are too narrow, and questioned the choice of Michael Donan, SC, as chairperson.
The DA believes Donan to be an inappropriate choice as he is permanently contracted to the Department of Justice and Constitutional Development, and therefore in the employ of the state. This might bring his independence into question, Camerer said.
The DA has earlier expressed concern that the commission’s terms of reference could preclude it from investigating any role senior ruling-party members might have played in helping South African companies get contracts from the Iraqi government of Saddam Hussein. — Sapa
Members of the public who believe they can assist the commission may submit information on affidavit as soon as possible to Anna-Marie Kruger, the acting secretary of the commission, at the commission’s offices, first floor, 1166 Beeldpark Building, Schoeman Street, Hatfield, Pretoria; Tel: 012 430 3510; Fax: 012 430 3509