South Africa’s Minister of Energy, David Mahlobo and Deputy Minister Ambassador Thembisile Majola on Thursday met the Board of Central Energy Fund (CEF) to express their concerns at the failure of the Board to submit a conclusive report on the investigations into the sale of Crude Oil Stocks, which has taken two years to conclude.
In May 2017, Business Day reported that government admitted for the first time that the secret disposal of 10.3-million barrels of South Africa’s strategic oil reserves by the Strategic Fuel Fund (SFF) in December 2015 had been a sale and not a “rotation of stock”.
Former energy minister Mmamoloko Kubayi at the time appeared before Parliament and apologised for having misled the parliamentary members about the nature of the transaction. Read more..
This was after the DA’s energy spokesman Gordon Mackay expressed concern that the energy portfolio committee had been misled.
According to media, the crude oil stockpile was sold at the bottom of the crude oil price cycle at a substantial discount to the prevailing spot price. It was sold to three invited buyers at an average price of $28 a barrel at a time when the Brent oil price ranged between $37.22 and $44.44 a barrel.
CEF Board to submit a conclusive report
Both the Minister and Deputy Minister have instructed the CEF Board to meet urgently and submit a conclusive report with identified proposals and clear recommendations on how best to protect the interest of the State.
The report is expected to deal with the role of investigating agencies and the role that they have played in the delay of the investigation.