Strategic Fuel Fund (SFF) reports a cause for concern - Minister
SFF offer to buy Chevron assets a concern for Energy
Pretoria - The Department of Energy has expressed concern at the Strategic Fuel Fund (SFF) expressing interest to purchase Chevron assets.
“The Department of Energy notes with concern the reports regarding the SFF’s expression of interest in the Chevron assets, and is disturbed at the complete disregard for governance processes by the entity in question,” said the Director General of the department, Thabane Zulu.
This as the state entity announced interest to buy Chevron’s assets that include an oil refinery. Over the years SFF has been involved in crude oil handling hundreds of cargoes of oil have been imported or exported without pollution of the environment.
“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.
“In view of this failure to observe the correct processes, the Minister of Energy [Tina Tina Joemat-Pettersson] and the Director General will initiate a thorough investigation into the matter in consultation with both the Boards of CEF and the SFF,” said the department.
According to media reports, Chevron is working with investment bank Rothschild & Co. on the sale that may fetch about $1billion.