OUTA calls on Minister to save SA’s oil reserves
26 June 2019
A Cape High Court case set for Friday is a key move in a chess game that will decide the fate of SA’s strategic crude oil reserves worth over R9.38bn billion
The Organisation Undoing Tax Abuse (OUTA) is calling on Minister of Mineral Resources, Gwede Mantashe to intervene urgently in a matter set before the Cape High Court this Friday, which may have a significant impact on the fate of SA’s strategic crude oil reserves amounting to a current value of R9.38bn.
Between December 2015 and January 2016, South Africa’s strategic oil reserves were sold illegally to several companies without due process and with a blatant disregard for any required approval of the boards of directors of both the Central Energy Fund (CEF) and the Strategic Fuel Fund (SFF). The decision to sell off our oil reserves was also done without notifying the Minister of Finance, which is a statutory requirement.
This unlawful transaction has placed South Africa at risk as the country could find itself in a dire situation if faced with unforeseen emergencies. South Africa’s strategic oil reserves allow the country the liberty of being self-reliant, and in the case of an emergency, South Africa would be able to meet its daily national petroleum products demand of 704 000 barrels per day.