The corruption-plagued state-owned oil company PetroSA on Thursday appointed Mmete Fusi as its acting chief executive.
PetroSA said in a statement that Xolile Sizani had been “recused from operations, pending the outcome of an ongoing investigation”.
It did not elaborate on what the investigation entailed.
Sizani had been appointed by Mineral and Petroleum Resources Minister Gwede Mantashe in February.
“We request all employees to offer their full support to Mr Fusi as he leads the company through this critical period, focusing on initiatives aimed at turning the business around,” PetroSA said.
“We appreciate the professionalism and co-operation of all employees in respecting the board’s decision and allowing the internal processes to unfold,” it added.
In February, announcing the appointment of the new executive management and board of directors of the South African National Petroleum Company (SANPC), the holding firm for PetroSA, Mantashe commended Fusi, saying he had spent “more than 18 years working as a process engineer and a mineral economist”.
“We believe that these appointments will steer the SANPC to greater heights and more broadly within the national energy landscape, while also creating a vehicle for sustainable growth of South Africa in the energy sector,” the minister said.
Fusi had been chief executive of state-owned logistics company Transnet’s investment arm, Transnet International Holdings, prior to his PetroSA hiring.
The oil company had been without a chief executive for about 18 months after a forensic report unearthed fraud and corruption involving more than R500 million, which took place from 2015 to 2019.