ActionSA writes to Mineral Resources Minister to provide details on PetroSA’s R3.7bn Gazprombank deal
12 December 2023
ActionSA has written to Mineral Resources and Energy Minister, Gwede Mantashe, to provide details about PetroSA’s $200 million, or roughly R3.7 billion, deal with Russian-based Gazprombank to restart operations at the Mossel Bay Refinery.
While we are aware of South Africa’s urgent need to ensure energy stability, ActionSA is concerned about the secrecy surrounding the deal and allegations that the tender processes were slanted to favour Gazprombank. When concerns were raised by PetroSA’s internal bid evaluation committee and board, it was reportedly overruled.
It remains unclear whether the $200 million deal will be in the form of an investment or a loan, what the terms of that agreement are or what the shareholding will look like, who will get the profits from Mossel Bay Refinery, and whether Gazprombank will get access to any South African patented technology.
ActionSA can therefore simply not support a deal which may not benefit the South African people, and further increase the risk for international sanctions at a time when South Africans are already facing a cost-of-living crisis. We ask that Minister Mantashe urgently inform the South African public of the details of the deal to ease concerns.