/ 23 October 2006

DA, PetroSA reach settlement over Oilgate documents

The Democratic Alliance (DA) and state-owned oil company PetroSA settled their ”Oilgate” documents dispute on Monday, with the DA claiming victory.

Under the agreement — made an order of the court by Cape Deputy Judge President Jeanette Traverso — PetroSA has to supply the DA with documents relating to the so-called Oilgate transaction between itself and black economic empowerment company Imvume Management by November 13.

PetroSA also has to pay the costs.

”It is a great day for the fight for transparency and open, accountable governance,” DA leader Tony Leon said afterwards.

”It is a good day, too, for a vital piece of legislation that is often abused and misused by the African National Congress [ANC] government to hide and shield from open scrutiny facts and information which pre-eminently belong in the public domain.”

The case stemmed from the DA’s request in May last year to PetroSA under the Promotion of Access to Information Act for all the documentation relating to the 2002 contract between PetroSA and Imvume.

The Oilgate matter arose out of the December 2003 advance payment by PetroSA of R15-million to Imvume Management to buy oil condensate.

Instead of paying for the condensate, Imvume donated R11-million to the ANC’s 2004 election campaign.

This resulted in PetroSA having to pay twice for the oil condensate. The second time the payment was to the primary supplier, Glencore International, to cover the shortfall.

Leon said that by resisting the DA’s application for the documents, only to capitulate at the last minute, PetroSA had revealed itself as an enemy of transparency and open, accountable governance.

”It had no good reason to oppose the DA’s application and yet it sought to put its own considerable legal weight, recourses and public money behind opposing the DA. To what end? Ultimately, nothing.

”While the DA did win its case today [Monday], the South African public has had to wait 18 months, and its money has been used to fund an ill-conceived defence,” he said.

Also, if indeed Imvume was established ”as an ANC front company, something which both its own behaviour and an analysis of the available facts suggests”, the nature of its contract with government should be explored in full detail.

”Was a proper tender procedure followed? Was PetroSA aware of how exactly Imvume intended to use the advance payment it made to the company in December 2003? And what, exactly, was the nature of the relationship between the two entities?

”PetroSA has three weeks to comply with the court’s order. Once that documentation is made available to the DA, the DA will, in turn, make it available to the South African public,” Leon said. — Sapa