ENTIRE INTERIM BOARD SOUTH AFRICA’S NATIONAL OIL COMPANY, PETROSA, FIRED

JOHANNESBURG, The entire interim board of The Petroleum, Oil and Gas Corporation of South Africa SOC Ltd. (PetroSA) has been fired, according to sources within the Central Energy Fund, which wholly owns PetroSA.

The sources told the South African Broadcasting Corporation (SABC) on Wednesday that letters of dismissal were forwarded to them a week ago. Earlier, CEF Chairperson Luvo Makasi, had written to them, asking why they should not be dismisse.

PetroSA is the national oil company (NOC) of South Africa and its main activities are the extraction of natural gas from offshore fields. It is one of many government parastatals which have been embroiled in endless financial difficulties.

In 2014/15, it became the first State-owned company to make a loss of 14.6 billion Rand (about 1.123 billion US dollars at current excxhange rates) in a single financial year and it has not recovered since then.

Members of Parliament Gordon Mackay of the opposition Democratic Alliance (DA) and Nqaba Khwankwa of the opposition United Democratic Movement (UDM) say the dismissal of the interim board is long overdue. They say it’s a good decision because PetroSA had been making losses for a long time and it was about time that the CEF made a decision.

Earlier in 2017, the board told Parliament that in the current financial year, it had made losses of 2.2 billion Rand. But according to reliable sources, the figure is close to 4.0 billion Rand.

Reports suggest that the company is on the brink of retrenching staff.

Source: NAM NEWS NETWORK