Tuesday , August 3 2021

Nene certificate and Gordhan puts light on Zuma

A good example of the & # 39 is that it has never been until now in the public domain: the attempt by the state oil company PetroSA to buy Engen from the Malaysian state-owned oil company, Petroliam Nasional Berhad (Petronas). The Department of Energy has begun negotiations with Petronas back in 2012, but, according to Gordhan, he became aware of it in 2014.

The reason it became known, the problem was that the then Energy Minister Ben Martins appealed to the Ministry of Finance for approval to purchase and for government guarantees for its perceived value of the transaction, which was R18.68bn. This was an extremely generous offer, and Gordhan said the true value is closer to R12bn- R14bn.

Gordhan said that the price raise a red flag, because there was such a huge difference between the purchase price and the real value. Gordhan said that he wanted to know who would benefit from the difference.

The treasury was, in fact, provide a conditional guarantee sub & # 39 R9.5bn object into several "onerous" funding conditions are met and the completion of satisfactory due diligence. A year later, Zuma again raised the matter personally with Nene, who was ordered to a meeting in mid-2015, only to discover the Malaysian official from Engen / Petronas in the room. Zuma said Nene, he wanted it to approve the guarantee for PetroSA so it can raise funds for the purchase of the refinery stake in Petronas. As Gordhan, Nene also said he would consider it subject to "normal evaluation process."

In the end, the deal never took place, after Petronas came from behind PetroSA has not fulfilled the conditions of funding, but the deal involves two things. Zuma had only a minor concern about the process and procedures. His attitude seems to have been the fact that the Treasury agency implementation of the function of which was to carry out their personal wishes. Zuma also seemed to have little appreciation for the value of public funds, rather casually to approve the deal, in which billions at stake, without any real concern for their true value.

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