/ 25 February 2008

ANC ‘not investigating’ Chancellor House

The African National Congress (ANC) is not conducting a forensic audit into empowerment deals and tenders that were received by its investment company, Chancellor House, the party said on Monday.

”The ANC wishes to place on record that it is neither conducting an investigation nor a forensic audit into the company or any of its transactions.

”ANC treasurer general Mathews Phosa has, correctly, initiated an assessment of the value of the assets of the company,” the ANC said in a statement.

The party said the assessment would establish whether there were any ”perceived or real conflicts” of interest for the ANC.

There were reports on the weekend that the newly elected ANC leadership had ordered a forensic audit of all empowerment deals and tenders that were received by Chancellor House.

Phosa was quoted by the Sunday Times as saying the audit was designed to establish the exact value of the deals as well as to ascertain whether there were any conflicts of interest.

The Sunday newspaper said Phosa had hinted that criminal investigations might follow if anything untoward was uncovered.

”The law will have to take its course,” he reportedly said.

Chancellor House Holdings was formed in March 2003. It has clinched some big deals, which include 25% in engineering company Hitachi Power South Africa, which was awarded Eskom contracts worth R5,8-billion, the newspaper said. — Sapa