Newspaper reports suggesting something untoward in a deal between Russian companies and the African National Congress-aligned Chancellor House firm are nonsense, the ANC said on Tuesday.
”It is a deal between private companies that has nothing to do with government or the ANC,” said ANC spokesperson Smuts Ngonyama, adding that he did not want to comment on it.
On Tuesday both Business Day and Business Report newspapers reported there were questions about a deal between Chancellor House and Vnesheconombank and Azot Agrochemical Corporation.
Under the deal — one of the first overseen by the Russia-South Africa Business Council — the Russian firms will invest between R11,1-billion and R18,5-billion in a mineral fertiliser plant to be built in South Africa once a feasibility study is done.
Deputy President Phumzile Mlambo-Ngcuka and Russian Prime Minister Mikhail Fradkov witnessed the signing of the deal on Monday.
”This comes months after Chancellor House was exposed as a funding front for the ANC, raising questions on whether behind-closed-door machinations took place to ensure that Chancellor House was favoured for this partnership, given that its profits are said to flow to the ANC,” Business Day reported.
”The involvement of Chancellor House, which has been accused of being a funding arm of the ruling ANC, in such a high-profile, government-sponsored deal will raise questions,” Business Report wrote.
Ngonyama said the reports are another attempt to ”demonise” the government, the ANC and Chancellor House.
He said Chancellor House is a private company and not a funding company for the ANC.
Last year the Mail & Guardian claimed several high-ranking ANC officials had ties to the company, and that it funded the party. — Sapa