Fuel Fund heads fall on sword
The acting CEO and chairman of the Strategic Fuel Fund step down after violating government’s governance requirements.
|||Johannesburg - Both the acting CEO and chairman of the Strategic Fuel Fund have stepped down after violating government’s governance requirements.
Earlier this week, it emerged that the fund had bid for Chevron’s 75 percent stake in a local refinery as well as a chain of Caltex stations across the country.
However, the Department of Energy said on Thursday that this was done without its permission.
The fund said it had decided to make the offer for the Chevron assets, “given the strategically important role that [they] play in South African job creation, liquid fuels production and their national financial impact, and given the SFF mandate to ensure security of supply of liquid fuels.”
In a blunt and hard-hitting statement, the department said: “An offer to purchase by an entity of the Department of Energy requires express consent from the minister of energy as the ultimate shareholder representative. This was neither sought nor obtained.”
Now the Central Energy Fund has stepped into the fray and says it has established “that the actions of SFF did not comply with governance requirements”.
Read also: Chevron bid: Fuel Fund in hot water
It adds its board has accepted the resignation with immediate effect, of chairman Xolani Mkhwanazi and acting CE Godfrey Moagie and also resolved to urgently address the gaps in governance compliance at SFF and across the CEF group of companies.
“The CEF board regrets the impact of this occurrence to Chevron SA, who are a valued industry partner. The group further regrets the perceived misalignment with the Minister of Energy and the Department of Energy.”
Meanwhile, Bloomberg is reporting that Sasol may be keen on the assets, and is working with Chevron on a potential deal.
Chevron’s assets include a national network of Caltex service stations, a 110 000 barrels-a-day refinery in Cape Town and a lubricants manufacturing plant in Durban.
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