/ 6 May 2007

Majali threatens to ‘spill the beans’

Controversial African National Congress (ANC) funder Sandi Majali has threatened to ”spill the beans” about how R11-million of public money ended up in the coffers of the ANC ahead of the 2004 elections and the role played state oil company PetroSA in the dodgy transaction, the Sunday Times reported.

For the first time since the Oilgate scandal broke two years ago, Majali, speaking through his lawyer Barry Aaron, has revealed the role of state oil company PetroSA in the transaction and bluntly stated that he has kept quiet in order to protect powerful political figures.

Aaron said that contrary to Imvume and PetroSA’s previous assertions, Majali’s Imvume group had never asked for the R15-million ”advance” that was irregularly paid into its account.

He refuted PertroSA’s contention that Imvume was cash-strapped and had asked for the money to pay bonuses for staff.

Instead, he said, it was PetroSA that offered to make the payment into Imvume’s account.

Majali’s Imvume group made the donation to the ANC within four days of receiving the payment from PetroSA, the paper reported.

In 2005 Public Protector Lawrence Mushwana found PetroSA’s decision to pay an ”advance” to Imvume was ”lawful, well-founded and properly considered”.

After a public outcry, PetroSA launched an attempt to recover the money from Imvume. PetroSA and Imvume entered into settlement negotiations. In August 2004, Imvume made what PetroSA has called a ”good intent” payment of R1-million and was supposed to pay back the money in R500 000 installments.

Imvume has since paid back R10-million, but more than R8-million, including interest, remains outstanding.

When Imvume defaulted on payment last year, PetroSA sought a default judgement which would have resulted in Imvume’s liquidation. The judgement was granted in March.

In April, Majali successfully applied to the Johannesburg High Court for an order to set aside a default judgement.

Inexplicably, PetroSA was not in court to defend the matter.

According to Aaron, Majali will lodge a court action in two weeks to recoup the R10-million he has already paid to PetroSA, the report said.

PetroSA’s CEO Sipho Mkhize said he looked forward to meeting Majali in court.

He insisted that Imvume had requested the advance and that Majali had signed for it.

”So that is how we treat it. He signed and he agreed to it. I think there is nothing I can say about it. It is obvious we will meet in court. I would be happy if he spills the beans as well so that we all know. Maybe there is something we did not know.” – Sapa