President Thabo Mbeki would have to decide if he wants to change the Donen commission’s terms of reference before it could call further witnesses.
The commission is tasked with probing alleged illicit payments by South Africans of oil surcharges and kickbacks to the former Iraqi regime under the United Nations oil-for-food programme.
The Pretoria High Court on Monday ruled that subpoenas to several witnesses be set aside pending a decision by Mbeki and the Minister of Justice and Constitutional Development, who were respondents in the case, whether to change some of the regulations in the terms of reference of the commission.
Commission chairperson Michael Donen adjourned the Pretoria hearing pending a decision by the court.
”We cannot continue with questioning of witnesses with continuous interruption and legal action,” he said.
Businessman Rodney Hemphill, Montega Trading, Omni Energy Corporation and Falcon Commodity Trading, all scheduled to appear before the commission, brought an urgent application in the Pretoria High Court to have certain of the commission’s terms of reference scrapped.
They however first asked for their subpoenas forcing them to be set aside. This was done by agreement between the parties. They said they would hold out the second part of the application to have some regulations scrapped, pending the president and minister’s decision.
The contentious regulations determine that witnesses appearing before the commission may not refuse to answer questions possibly incriminating themselves.
The commission’s terms of reference include establishing the truth of allegations against eight South African companies and certain individuals, named in a report of an independent inquiry committee established by the United Nations.
It also has to establish whether the conduct of any company or persons amounted to an offence that can be tried in a South African court.
The commission must propose actions needed in respect of any offence, contravention or violation, and steps to be taken to prevent persons or companies under South African jurisdiction from getting involved in sanctions-busting in future.
Imvume Management is one of four companies implicated in the report in the payment of oil surcharges. The others are Montega Trading, Mocoh Services SA, and Omni Oil.
Individuals implicated include Imvume boss Sandi Majali, Michael Hacking from Mocoh Services, and Shaker Al Khafaji from Omni Oil.
Hemphill reportedly headed Omni Oil, and was a former business partner of Majali. The two men were also shareholders in Montega Trading.
Four other companies were fingered in the payment of kickbacks — Ape Pumps, Flacon Trading Group, Glaxo Wellcome SA, 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 citizens.
It allowed for oil proceeds to go into a special account for food and medicine.
A UN committee later found that former Iraqi dictator Saddam Hussein’s government bypassed sanctions by soliciting aid in return for oil contracts.
It reportedly found that Majali and two of his companies — Montega Trading and Imvume Management — profited from Iraqi attempts to solicit political support in exchange for business opportunities.
Majali is alleged to have presented himself as Mbeki’s adviser.
Other witnesses scheduled to appear before the commission included businessmen Tokyo Sexwale and Sandi Majali, and ANC secretary general Kgalema Motlanthe. – Sapa