XSTRATA CEO Mick Davis might lead an exodus of the company’s top executives after its shareholders on Tuesday approved a $31bn merger with Glencore, but rejected a £144m management retention scheme that the miner’s directors had proposed.
The shareholder vote on the deal will bring the 10-month saga one step closer to its conclusion, uniting Xstrata’s output of copper, coal and nickel with Glencore’s marketing and trading expertise.
But the snubbing of the retention scheme prompted Xstrata chairman John Bond, who will be chairman of the combined group, to announce yesterday that he would step down once a replacement is found.
Mr Davis, who with his management team has grown Xstrata to a multibillion-dollar company from one worth just $500m in a decade, is expected to step down in six months in favour of Glencore’s Ivan Glasenberg.
Mr Davis has been tipped to replace outgoing Anglo American CEO Cynthia Carroll. He was asked during yesterday’s shareholder meeting in Zug, Switzerland, whether he would be starting another business or retiring.
"I have not yet decided what my future plans will be but certainly retirement will not be part of them," Mr Davis said.
The controversial management retention scheme for 70 top Xstrata managers was rejected by 78.4% of Xstrata shareholders voting on Tuesday.
Glencore Xstrata International, the new name for the company, will have interests in about 35 coal mines in Colombia, Africa and Australia, and account for about 10% of global seaborne exports of the fuel. It will be the world’s third-biggest producer of mined copper, the largest zinc miner and the biggest exporter of coal burnt by power stations.
The group will have about 11% of the 13-million-ton global zinc market and about 40% of the 1.9-million tons of the metal produced in Europe.
One large Xstrata shareholder, asset manager Knight Vinke, said at the meeting yesterday that it had no confidence in the "independence and robustness" of the board and had voted against the deal. "We are extremely concerned with regard to the ability of the board of the newly merged company to represent our interests," said David Trenchard, vice-chairman of Knight Vinke.
"Good governance must now take centre stage and we intend to broaden our discussions with fellow shareholders to ensure that this is the case."
But most Glencore shareholders backed the merger. At the meeting in Zug, which lasted just 12 minutes, over 99% of voting shareholders backed the deal.
The deal, announced in February, has already had more than its fair share of twists, with the original terms panned by shareholders — some of whom also took exception to retention payments for Xstrata executives.
Qatar’s sovereign wealth fund and Xstrata’s second-largest shareholder after Glencore said last week it would back the deal unreservedly. But the fund, which played a pivotal role, did not approve the controversial packages proposed for Xstrata’s key team.
In negotiations with Qatar, Mr Glasenberg insisted he become CE of the combined company rather than Mr Davis, who is expected to leave six months after the deal closes but can depart earlier if he wishes.
Glencore must also overcome European Commission concerns about potential competition problems the deal poses.
The trader has offered to sell Xstrata’s German zinc smelter, after its first solution was deemed insufficient by regulators.
Source: Business Day
Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts
Wednesday, November 21, 2012
Thursday, February 11, 2010
SA solar research eclipses rest of the world
In a scientific breakthrough that has stunned the world, a team of South African scientists has developed a revolutionary new, highly efficient solar power technology that will enable homes to obtain all their electricity from the sun. This means high electricity bills and frequent power failures could soon be a thing of the past.
The unique South African-developed solar panels will make it possible for houses to become completely self-sufficient for energy supplies. The panels are able to generate enough energy to run stoves, geysers, lights, TVs, fridges, computers - in short all the mod-cons of the modern house. The new technology should be available in South Africa within a year and through a special converter, energy can be fed directly into the wiring of existing houses. New powerful storage units will allow energy storage to meet demands even in winter. The panels are so efficient they can operate through a Cape Town winter. Whilst direct sunlight is ideal for high-energy generation, other daytime light also generates energy via the panels.
A team of scientists led by University of Johannesburg (formerly Rand Afrikaans University) scientist Professor Vivian Alberts achieved the breakthrough after 10 years of research. The South African technology has now been patented across the world. One of the world leaders in solar energy, German company IFE Solar Systems, has invested more than R500-million in the South African invention and is set to manufacture 500 000 of the panels before the end of the year at a new plant in Germany. Production will start next month and the factory will run 24 hours a day, producing more than 1 000 panels a day to meet expected demand.
Another large German solar company is negotiating with the South African inventors for rights to the technology, while a South African consortium of businesses are keen to build local factories.
The new, highly efficient and cheap alloy solar panel is much more efficient than the costly old silicone solar panels. International experts have admitted that nothing else comes close to the effectiveness of the South African invention. The South African solar panels consist of a thin layer of a unique metal alloy that converts light into energy. The photo-responsive alloy can operate on virtually all flexible surfaces, which means it could in future find a host of other applications.
Alberts said the new panels are approximately five microns thick (a human hair is 20 microns thick) while the older silicon panels are 350 microns thick. the cost of the South African technology is a fraction of the less effective silicone solar panels. Alberts said in Switzerland it was already compulsory for all new houses to include solar technology to lessen energy demands on national grids. "And that was the older, less effective technology. With our hours of sunlight, we will on average generate twice as much energy than, for instance, European countries."
While South African scientists developed and patented the new, super-effective alloy solar panels, other companies have developed new, super-efficient storage batteries and special converters to change the energy into the power source of a particular country (220 volts in South Africa).
Eskom spokesperson Carin de Villiers said any new power supply that lessened the load on Eskom was to be welcomed. She said Eskom was also doing its own research on solar energy. "In fact, we are currently investigating building what will probably be the largest solar power plant, in the Northern Cape - a 100-megawatt facility." She added that Eskom was also researching wind and fuel-cell technology as alternative energy sources.
Source: IoL
The unique South African-developed solar panels will make it possible for houses to become completely self-sufficient for energy supplies. The panels are able to generate enough energy to run stoves, geysers, lights, TVs, fridges, computers - in short all the mod-cons of the modern house. The new technology should be available in South Africa within a year and through a special converter, energy can be fed directly into the wiring of existing houses. New powerful storage units will allow energy storage to meet demands even in winter. The panels are so efficient they can operate through a Cape Town winter. Whilst direct sunlight is ideal for high-energy generation, other daytime light also generates energy via the panels.
A team of scientists led by University of Johannesburg (formerly Rand Afrikaans University) scientist Professor Vivian Alberts achieved the breakthrough after 10 years of research. The South African technology has now been patented across the world. One of the world leaders in solar energy, German company IFE Solar Systems, has invested more than R500-million in the South African invention and is set to manufacture 500 000 of the panels before the end of the year at a new plant in Germany. Production will start next month and the factory will run 24 hours a day, producing more than 1 000 panels a day to meet expected demand.
Another large German solar company is negotiating with the South African inventors for rights to the technology, while a South African consortium of businesses are keen to build local factories.
The new, highly efficient and cheap alloy solar panel is much more efficient than the costly old silicone solar panels. International experts have admitted that nothing else comes close to the effectiveness of the South African invention. The South African solar panels consist of a thin layer of a unique metal alloy that converts light into energy. The photo-responsive alloy can operate on virtually all flexible surfaces, which means it could in future find a host of other applications.
Alberts said the new panels are approximately five microns thick (a human hair is 20 microns thick) while the older silicon panels are 350 microns thick. the cost of the South African technology is a fraction of the less effective silicone solar panels. Alberts said in Switzerland it was already compulsory for all new houses to include solar technology to lessen energy demands on national grids. "And that was the older, less effective technology. With our hours of sunlight, we will on average generate twice as much energy than, for instance, European countries."
While South African scientists developed and patented the new, super-effective alloy solar panels, other companies have developed new, super-efficient storage batteries and special converters to change the energy into the power source of a particular country (220 volts in South Africa).
Eskom spokesperson Carin de Villiers said any new power supply that lessened the load on Eskom was to be welcomed. She said Eskom was also doing its own research on solar energy. "In fact, we are currently investigating building what will probably be the largest solar power plant, in the Northern Cape - a 100-megawatt facility." She added that Eskom was also researching wind and fuel-cell technology as alternative energy sources.
Source: IoL
Thursday, January 28, 2010
Stand-Alone Body Planned to Level Electricity Playing Fields
The Department of Energy is planning to complete by end-March a new legal framework which will establish an independent system operator to buy electricity from Eskom and independent power producers. Initial suggestions were that only electricity from independent power producers would be bought by the independent system operator, but this has now been broadened to include Eskom's power. The aim of the new system is to create a level playing field between Eskom and independent producers so that the latter would not have to negotiate power purchase agreements with Eskom.
Eskom's designation as the sole buyer of electricity from independent producers has been a major stumbling block to developing a vibrant independent generation industry, as the utility has been reluctant to buy relatively more expensive power from independent producers. This has meant the government has not met its target to have at least 30% of all power generated by independent producers.
The new model - used extensively in countries where the private sector contributed to power generation such as Australia, the US, Argentina and Norway - would not affect Eskom's viability, the energy department's director-general, Nelisiwe Magubane, said yesterday. This was because both Eskom's power and that of the independent producers would be bought by the independent body at the tariffs determined by the National Energy Regulator of SA (Nersa). The same tariff would apply to all power purchased.
Magubane said that more private players would be attracted to the industry once tariffs rose after Nersa had decided on Eskom's 35% tariff application. She said the Cabinet had instructed the department at its last meeting last year to develop the model of independent power purchase and to report back to it before the end of March. Magubane said the proposed model would ensure the wholesale purchase of power by the independent operator was transparent and took place outside Eskom. The electricity would then be resold in bulk for transmission and distribution by Eskom and municipalities. "What has been happening is that Eskom has been acting like a real monopoly, trying to keep other players out of the industry," Magubane said. "We want to take that function of buying power away from it."
Magubane said Eskom was happy with the proposal and was working with the department on how best to implement it.
Source: All Africa
Eskom's designation as the sole buyer of electricity from independent producers has been a major stumbling block to developing a vibrant independent generation industry, as the utility has been reluctant to buy relatively more expensive power from independent producers. This has meant the government has not met its target to have at least 30% of all power generated by independent producers.
The new model - used extensively in countries where the private sector contributed to power generation such as Australia, the US, Argentina and Norway - would not affect Eskom's viability, the energy department's director-general, Nelisiwe Magubane, said yesterday. This was because both Eskom's power and that of the independent producers would be bought by the independent body at the tariffs determined by the National Energy Regulator of SA (Nersa). The same tariff would apply to all power purchased.
Magubane said that more private players would be attracted to the industry once tariffs rose after Nersa had decided on Eskom's 35% tariff application. She said the Cabinet had instructed the department at its last meeting last year to develop the model of independent power purchase and to report back to it before the end of March. Magubane said the proposed model would ensure the wholesale purchase of power by the independent operator was transparent and took place outside Eskom. The electricity would then be resold in bulk for transmission and distribution by Eskom and municipalities. "What has been happening is that Eskom has been acting like a real monopoly, trying to keep other players out of the industry," Magubane said. "We want to take that function of buying power away from it."
Magubane said Eskom was happy with the proposal and was working with the department on how best to implement it.
Source: All Africa
Thursday, November 12, 2009
Eskom board confirms Maroga's resignation
Jacob Maroga has resigned as CEO of Eskom, the electricity parastatal's board said on Thursday. "Eskom confirmed that Mr Maroga has resigned. His intention to resign was welcomed by the board," acting board chairperson Mpho Makwana told reporters at Eskom's Megawatt Park head office in Johannesburg.
The announcement ended days of speculation on Maroga's position at the parastatal after a power struggle between Meroga and former board chairperson Bobby Godsell. While Maroga's resignation was announced last week Thursday to Eskom's staff by Godsell, Maroga reportedly returned to work on Monday. On the same day, November 9, Godsell handed in his resignation, saying that the government had refused to support Eskom's board in resolving its dispute with Maroga.
In recent months, Maroga had been criticised for sacking international energy consultant Susan Olsen, who warned in a confidential memo that Eskom's coal-procurement practices were placing electricity supplies in jeopardy. Maroga seemingly ignored Olsen's advice and the country was then plunged into a period of load-shedding in January 2008. Other official Eskom documents were also leaked which painted a picture of its lack of understanding of coal markets and how skilled staff had departed from the parastatal.
The Democratic Alliance recently released a report by Eskom's technical corporate audit division, which highlighted the serious shortages in senior staff at the utility and supported Olson's earlier findings.
Source: Mail & Guardian
The announcement ended days of speculation on Maroga's position at the parastatal after a power struggle between Meroga and former board chairperson Bobby Godsell. While Maroga's resignation was announced last week Thursday to Eskom's staff by Godsell, Maroga reportedly returned to work on Monday. On the same day, November 9, Godsell handed in his resignation, saying that the government had refused to support Eskom's board in resolving its dispute with Maroga.
In recent months, Maroga had been criticised for sacking international energy consultant Susan Olsen, who warned in a confidential memo that Eskom's coal-procurement practices were placing electricity supplies in jeopardy. Maroga seemingly ignored Olsen's advice and the country was then plunged into a period of load-shedding in January 2008. Other official Eskom documents were also leaked which painted a picture of its lack of understanding of coal markets and how skilled staff had departed from the parastatal.
The Democratic Alliance recently released a report by Eskom's technical corporate audit division, which highlighted the serious shortages in senior staff at the utility and supported Olson's earlier findings.
Source: Mail & Guardian
Saturday, July 25, 2009
SA plans three nuclear power stations
South Africa is considering the construction of three nuclear power stations on its coastline despite objections from environmentalists.
The country currently has Africa's sole nuclear plant, Koeberg, near Cape Town, which began generating electricity in 1984. It is surrounded by a private game reserve and has been targeted by environmental protesters.
Source: Mail & Guardian
The country currently has Africa's sole nuclear plant, Koeberg, near Cape Town, which began generating electricity in 1984. It is surrounded by a private game reserve and has been targeted by environmental protesters.
Source: Mail & Guardian
Wednesday, May 20, 2009
New Energy To Tackle Climate Change in South Africa?
The announcement by the new South African government to decouple the Ministries of Minerals and Energy represents a symbolic shift away from a troubled legacy.
Civil society has long called for splitting the incongruous pair into departments with their own clear and distinct mandates. However, jubilation must be tempered as we consider the ideological and practical implications of the decision for the Zuma-led government, which is emphasising the strengthening of institutions and has, through the ANC’s Polokwane declaration, put climate change as a key item in its agenda.
A challenging time lies ahead for the Ministry of Energy in creating a new department in a rapidly deteriorating physical environment. Tough choices must be made as the ramifications also go well beyond the Department to fundamentally reorganising power relations in our country as well as confronting the premise and trajectory of our current development model. But the rewards for creating benchmarks for sustainable, socially just future would be well worth the struggle.
Source: ISS
Civil society has long called for splitting the incongruous pair into departments with their own clear and distinct mandates. However, jubilation must be tempered as we consider the ideological and practical implications of the decision for the Zuma-led government, which is emphasising the strengthening of institutions and has, through the ANC’s Polokwane declaration, put climate change as a key item in its agenda.
A challenging time lies ahead for the Ministry of Energy in creating a new department in a rapidly deteriorating physical environment. Tough choices must be made as the ramifications also go well beyond the Department to fundamentally reorganising power relations in our country as well as confronting the premise and trajectory of our current development model. But the rewards for creating benchmarks for sustainable, socially just future would be well worth the struggle.
Source: ISS
New minister outlines energy priorities
Newly appointed Energy Minister Dipuo Peters on Wednesday outlined her short- to medium-term priorities for the sector.
Her address to a power conference in Cape Town was meant to be her debut speech as minister, but it was eventually delivered on her behalf after a lengthy delay, as she was attending the new Cabinet's first meeting at Tuynhuys.
The government would continue to strive for universal access to energy, with special emphasis on the rural poor, she said. "This will not only cover the electricity supply infrastructure and hardware, but also the operational cost associated with the poor households. "Regarding the latter, we will work closely with National Treasury and municipalities to make it happen within our available resources," Peters said.
The global economic slowdown should be viewed as a short-term scenario and the energy sector needed to plan carefully to allow it to respond quickly to the needs of a growing economy, she said.
Source: Mail & Guardian
Her address to a power conference in Cape Town was meant to be her debut speech as minister, but it was eventually delivered on her behalf after a lengthy delay, as she was attending the new Cabinet's first meeting at Tuynhuys.
The government would continue to strive for universal access to energy, with special emphasis on the rural poor, she said. "This will not only cover the electricity supply infrastructure and hardware, but also the operational cost associated with the poor households. "Regarding the latter, we will work closely with National Treasury and municipalities to make it happen within our available resources," Peters said.
The global economic slowdown should be viewed as a short-term scenario and the energy sector needed to plan carefully to allow it to respond quickly to the needs of a growing economy, she said.
Source: Mail & Guardian
Renewables Surge Despite Economic Crisis
The 2008 figures are in from the new REN 21 Renewables Global Status Report: Renewable power capacity (excluding large hydropower) increased a hefty 16 percent last year, which is remarkable given that world oil use actually declined. Growth in some renewable sectors was even more impressive. Biodiesel production increased 34 percent, and solar power took the prize with a 73 percent jump.
Source: Worldwatch Institute
Source: Worldwatch Institute
Wednesday, October 8, 2008
Plans to mine Wild Coast postponed
Controversial plans to mine titanium at Xolobeni on a pristine stretch of the Wild Coast have been put on hold. The decision came after Minister of Minerals and Energy Buyelwa Sonjica declared that more consultation with the community is needed.
Source: Mail & Guardian
Source: Mail & Guardian
Tuesday, November 20, 2007
Worldwatch Report: Powering China’s Development
China has become a global leader in renewable energy. It is expected to invest more than $10 billion in new renewable energy capacity in 2007, second only to Germany. Most of this is for small hydropower, solar hot water, and wind power. Meanwhile, investment in large hydropower continues at $6–10 billion annually. A landmark renewable energy law, enacted in 2005, supports continued expansion of renewables as a national priority. China currently obtains 8 percent of its energy and 17 percent of its electricity from renewables— shares that are projected to increase to 15 percent and 21 percent by 2020.
Among renewable energy sources:
* Wind power is the fastest-growing power generation technology in China, having doubled in capacity during 2006 alone.While wind is still slightly more expensive than coal power, policies encourage competitive pressure on costs, and new mandates require power companies to obtain a minimum share of their power from wind and other renewables. China is home to more than 50 aspiring domestic manufacturers of wind turbines and a number of foreign producers.
* Solar power is still in its infancy in China, although a growing amount is used in rural areas and other off-grid applications. A large market for grid-tied solar photovoltaic (PV) is still several years away, once costs decline further. Already, China is a global manufacturing powerhouse for solar PV, third only to Japan and Germany, with huge investments in recent years and much more expected.
* China is the world’s largest market for solar hot water, with nearly two-thirds of global capacity. The country’s 40 million solar hot water systems mean that more than 10 percent of Chinese households rely on the sun to heat their water. When Chinese firms eventually turn to exporting, the lower costs of their units—seven times less than in Europe—could affect markets globally.
* Biomass power in China comes mostly from sugarcane wastes and rice husks, and has not grown in recent years. New policies will likely mean more biomass power from other sources, such as agricultural and forestry wastes. In addition, industrial-scale biogas, such as from animal wastes, is starting to make a contribution to power generation.
* Biofuels for transportation have received widespread attention in China. Ethanol is produced in modest amounts from corn, and biodiesel is produced in small amounts from waste cooking oil. The government plans to expand biofuels production from cassava, sweet sorghum, and oilseed crops, although the large-scale potential is limited. The greatest promise lies with cellulosic ethanol, which many expect to become commercially viable within 7–10 years. If China could use its vast cellulosic resource of agricultural and forestry wastes—up to half a billion tons per year—it might become a major ethanol producer after 2020.
It is likely that China will meet and even exceed its renewable energy development targets for 2020. Total power capacity from renewables could reach 400 gigawatts by 2020, nearly triple the 135 gigawatts existing in 2006, with hydro, wind, biomass, and solar PV power making the greatest contributions.More than one-third of China’s households could be using solar hot water by 2020 if current targets and policies are continued. Use of other renewables, including biogas and perhaps solar thermal power, will increase as well.
Source: Worldwatch Institute
Among renewable energy sources:
* Wind power is the fastest-growing power generation technology in China, having doubled in capacity during 2006 alone.While wind is still slightly more expensive than coal power, policies encourage competitive pressure on costs, and new mandates require power companies to obtain a minimum share of their power from wind and other renewables. China is home to more than 50 aspiring domestic manufacturers of wind turbines and a number of foreign producers.
* Solar power is still in its infancy in China, although a growing amount is used in rural areas and other off-grid applications. A large market for grid-tied solar photovoltaic (PV) is still several years away, once costs decline further. Already, China is a global manufacturing powerhouse for solar PV, third only to Japan and Germany, with huge investments in recent years and much more expected.
* China is the world’s largest market for solar hot water, with nearly two-thirds of global capacity. The country’s 40 million solar hot water systems mean that more than 10 percent of Chinese households rely on the sun to heat their water. When Chinese firms eventually turn to exporting, the lower costs of their units—seven times less than in Europe—could affect markets globally.
* Biomass power in China comes mostly from sugarcane wastes and rice husks, and has not grown in recent years. New policies will likely mean more biomass power from other sources, such as agricultural and forestry wastes. In addition, industrial-scale biogas, such as from animal wastes, is starting to make a contribution to power generation.
* Biofuels for transportation have received widespread attention in China. Ethanol is produced in modest amounts from corn, and biodiesel is produced in small amounts from waste cooking oil. The government plans to expand biofuels production from cassava, sweet sorghum, and oilseed crops, although the large-scale potential is limited. The greatest promise lies with cellulosic ethanol, which many expect to become commercially viable within 7–10 years. If China could use its vast cellulosic resource of agricultural and forestry wastes—up to half a billion tons per year—it might become a major ethanol producer after 2020.
It is likely that China will meet and even exceed its renewable energy development targets for 2020. Total power capacity from renewables could reach 400 gigawatts by 2020, nearly triple the 135 gigawatts existing in 2006, with hydro, wind, biomass, and solar PV power making the greatest contributions.More than one-third of China’s households could be using solar hot water by 2020 if current targets and policies are continued. Use of other renewables, including biogas and perhaps solar thermal power, will increase as well.
Source: Worldwatch Institute
Wednesday, September 5, 2007
Eskom looks to nuclear plants
South Africa's largely coal-driven power utility Eskom has hit the limits of its capacity and aims to double output by 2025, with nuclear plants supplying more than a quarter of future energy compared with 6% now. Eskom's chief executive Jacob Maroga told a coal conference on Tuesday the state-owned firm would cut back on polluting coal-fired plants that have made South Africa the world's lowest cost electricity producer. "The issues we're faced with are costs and lead time, but the debate around global warming is key, because coal is a big contributor to carbon dioxide emissions," Maroga told the Coaltrans conference. "We can now finally say we have run out of surplus capacity."
Maroga said plans to boost output to 80 000 megawatts (MW) by 2025 would include adding 20 000 MW of nuclear-supplied energy as well as extra renewable capacity. The proportion of output from coal would fall below 70% by 2025 from 86% currently. "All over the world nuclear is coming back," he said. "Going forward the electricity prices we have will not be sustainable."
The two reactors at South Africa's Koeberg, Africa's only nuclear-fired facility, generate some 6% of the country's electricity, mainly used around Cape Town. Maroga said South Africa, one of the biggest producers of uranium, was building a multi-billion dollar new technology pebble bed modular reactor (PBMR), and has mooted building more conventional plants to add to Koeberg.Eskom was currently planning to expand yearly by 4%, to keep up with a projected 6% growth in the gross domestic product of Africa's biggest economy.
The company has already outlined a R150-billion spending programme from 2007 to 2011, with more to follow.
Source: Mail & Guardian
Maroga said plans to boost output to 80 000 megawatts (MW) by 2025 would include adding 20 000 MW of nuclear-supplied energy as well as extra renewable capacity. The proportion of output from coal would fall below 70% by 2025 from 86% currently. "All over the world nuclear is coming back," he said. "Going forward the electricity prices we have will not be sustainable."
The two reactors at South Africa's Koeberg, Africa's only nuclear-fired facility, generate some 6% of the country's electricity, mainly used around Cape Town. Maroga said South Africa, one of the biggest producers of uranium, was building a multi-billion dollar new technology pebble bed modular reactor (PBMR), and has mooted building more conventional plants to add to Koeberg.Eskom was currently planning to expand yearly by 4%, to keep up with a projected 6% growth in the gross domestic product of Africa's biggest economy.
The company has already outlined a R150-billion spending programme from 2007 to 2011, with more to follow.
Source: Mail & Guardian
Friday, July 9, 1999
Maduna's 'secret' links to fuel bosses
Penuell Maduna established "secretive channels of communication" with selected senior fuel industry officials shortly after becoming Minerals and Energy Minister in 1996. The claim emerged during Maduna's third day on the witness stand in Public Protector Selby Baqwa's inquiry into alleged irregularities in Strategic Fuel Fund finances, and whether or not Auditor-General Henri Kluever's reports on them were "correct and proper".
Maduna, now Justice Minister, was being questioned by Pearce Rood, counsel for Roy Pithey - former chairman of the Central Energy Fund, which oversees the Strategic Fuel Fund. Maduna said he had communicated with the officials privately to glean information about suspicious-seeming payments in an oil deal. Rood gave notice that he would make submissions on the "propriety of the secretive channels of communication" between Maduna and certain senior Strategic Fuel Fund officials, including Brian Casey and former general manager Kobus van Zyl.
Payments of a 7,5 cents-a-barrel premium to an Egyptian oil trader had been brought to Maduna's attention by Essop Pahad, then Deputy Minister in the Office of Deputy President Thabo Mbeki. "I was expected to find out what the justification for these payments was," he said. An acquaintance put him in touch with senior Strategic Fuel Fund official Brian Casey, with whom he had several private meetings in a bid to find out more about the premium payments.
When asked why he had not approached Pithey, who had a statutory obligation to answer such questions, Maduna said: "I cannot give a reason." When pressed on this by Baqwa, who wondered if it was "not incumbent" on him to approach Pithey, Maduna said, "Well, the fact is, I did not, and I cannot provide a reason." He said he had been in the Cabinet for only three-and-a-half months and may not have been "aware" of the statutory relationship between himself and the Central Energy Fund chairman. However, while he could not give a reason why he did not discuss the premium payments with Pithey, he was getting information from other officials such as Van Zyl and Casey. He added, "Perhaps it was because I thought he (Pithey) was implicated in these payments (of a 7,5c-a-barrel premium) that I decided not to go straight to him." When Baqwa asked him why he thought this, Maduna said, "Well, the suggestion had been made that he (Mr Pithey) had been told about the payments and had done nothing about them."
The two-and-a-half-day cross-examination of Maduna by counsel for Auditor-General Kluever, Eberhard Bertelsmann SC, ended on Thursday, but the Justice Minister will return to the witness stand when the hearing resumes on Monday for further cross-examination by counsel for other parties involved.
Source: IoL
Maduna, now Justice Minister, was being questioned by Pearce Rood, counsel for Roy Pithey - former chairman of the Central Energy Fund, which oversees the Strategic Fuel Fund. Maduna said he had communicated with the officials privately to glean information about suspicious-seeming payments in an oil deal. Rood gave notice that he would make submissions on the "propriety of the secretive channels of communication" between Maduna and certain senior Strategic Fuel Fund officials, including Brian Casey and former general manager Kobus van Zyl.
Payments of a 7,5 cents-a-barrel premium to an Egyptian oil trader had been brought to Maduna's attention by Essop Pahad, then Deputy Minister in the Office of Deputy President Thabo Mbeki. "I was expected to find out what the justification for these payments was," he said. An acquaintance put him in touch with senior Strategic Fuel Fund official Brian Casey, with whom he had several private meetings in a bid to find out more about the premium payments.
When asked why he had not approached Pithey, who had a statutory obligation to answer such questions, Maduna said: "I cannot give a reason." When pressed on this by Baqwa, who wondered if it was "not incumbent" on him to approach Pithey, Maduna said, "Well, the fact is, I did not, and I cannot provide a reason." He said he had been in the Cabinet for only three-and-a-half months and may not have been "aware" of the statutory relationship between himself and the Central Energy Fund chairman. However, while he could not give a reason why he did not discuss the premium payments with Pithey, he was getting information from other officials such as Van Zyl and Casey. He added, "Perhaps it was because I thought he (Pithey) was implicated in these payments (of a 7,5c-a-barrel premium) that I decided not to go straight to him." When Baqwa asked him why he thought this, Maduna said, "Well, the suggestion had been made that he (Mr Pithey) had been told about the payments and had done nothing about them."
The two-and-a-half-day cross-examination of Maduna by counsel for Auditor-General Kluever, Eberhard Bertelsmann SC, ended on Thursday, but the Justice Minister will return to the witness stand when the hearing resumes on Monday for further cross-examination by counsel for other parties involved.
Source: IoL
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