FF Plus asks PP to investigate dubious oil transaction of R3 billion involving Public Investment Corporation

The FF Plus has asked the Public Protector (PP) to investigate a transaction involving an apparent bankrupt oil company in which the Public Investment Corporation (PIC) had apparently invested R3 billion, Adv. Anton Alberts, the FF Plus' parliamentary spokesperson on economic affairs says (see Mail & Guardian report and editorial).

The PIC manages the state's pension fund.

According to a media report (Mail & Guardian, 14 February 2014), Mr. Kase Lawal, an American of Nigerian descent and an acquaintance of President Jacob Zuma, is in charge of the company.

Lawal, an internationally well-known businessman has for a long time had close ties with the ANC and had donated millions of rand to Zuma's education trust.

According to Adv. Alberts, everything points to the transaction being questionable and extremely risky and in the process gamble with millions of rand of public servants. According to the media report, Camac has denied that they had donated any money to the ANC or any other political party.

"The FF Plus would like to know exactly what is happening. Everything points to the company being on the brink of bankruptcy and the possibility exists that a large portion of the money can be channelled back to the ANC's election fund.

"According to all available information, the PIC will be paying R3 billion for a 30% share in Camac Energy which is controlled by the Lawal family who hold 57% of the shares.

"Camac only exploits crude oil in the Oyo oilfield in Nigeria and according to reports production has declined from 25 000 barrels a day in 2009 to the current 2 000 barrels a day.

"If this is accurate, it is clear that Camac is busy sinking financially and the investment of the PIC has most probably rescued it from collapsing and at the same ensured a fortune for the Lawal family.

"The FF Plus therefore requested the PP to investigate the whole transaction and also to look at any advantage which the ANC may receive from it. It is clear that the transaction cannot be profitable for the PIC and that it is unlawful and boils down to corruption.

"If the transaction is to continue without any clear answers, the FF Plus will consider taking urgent legal steps to stop the transaction," Adv. Alberts says.

Statement issued by Adv. Anton Alberts, FF Plus parliamentary spokesperson: Economic Affairs, February 15 2014

Click here to sign up to receive our free daily headline email newsletter