/ 16 August 2007

Report expected soon on ‘reinvestigated’ Oilgate

The Public Protector is at an “advanced stage” in a reinvestigation of the so-called Oilgate scandal, originally uncovered by the Mail & Guardian. Advocate Lawrence Mushwana says his office is finalising its investigations and a report will be tabled in Parliament soon.

Oilgate revolves around how Imvume Management, effectively a front company for the African National Congress, had channelled R11-million in public money to the party before the 2004 elections. Imvume had obtained the money as an advance from oil parastatal PetroSA.

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

At the time, M&G editor Ferial Haffajee said: “Mushwana tried to bury important allegations unearthed by the M&G, and he smeared us in the process. A newspaper is built on little other than its credibility and reputation — Mushwana wilfully sought to damage ours.

“It is unusual for a newspaper to enter activist territory and legally challenge someone with whom we disagree, but we felt this is necessary to protect our own credibility and the public’s right to know.

“The public is entitled to unbiased and diligent action by an institution as crucial to democracy as the public protector. His Oilgate investigation and report failed on both counts.”

The paper then filed a court challenge to Mushwana’s findings on the Oilgate scandal, seeking to have his report overturned and redone. The case is due to be heard later this year in the Pretoria High Court.

In May this year the Sunday Times carried a story in which Sandi Majali, chief executive of Imvume, through his lawyer, denied that his company ever requested an advance from PetroSA and that it was deliberately used to channel public money to the ANC.

Mushwana said it was then that his office took up the investigation again.