'Problem child' PetroSA lost R14.5 billion in a year (on a single project)

New Energy Minister Mmamoloko Kubayi says she’s worried about what’s happening at the state-owned PetroSA.

The Minister – who labelled PetroSA a “problem child” – is particularly concerned about the Ikhwezi Project in Mossel Bay.

It contributed to losses of R14.5 billion during the 2014/15 financial year.

She also queried the payment of executive bonuses totalling R17.3 million.

Kubayi says there were “glaring governance problems” related to the 2015 sale of South Africa’s crude oil reserves when prices were at an eight-year low.

The Money Show's Bruce Whitfield asked EE Publishers MD Chris Yelland and Robert Jeffrey, Senior Economist at Econometrix, for comment.

Yelland and Jeffrey also discussed nuclear, disagreeing with each other quite fundamentally.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

Baseload coal and nuclear is necessary… we cannot afford to postpone for many years as some are saying…

Robert Jeffrey, Econometrix

We need reliable electricity at a reasonable price.

Robert Jeffrey, Econometrix

It’s too early to say [if there’s a breath of fresh air at the Department of Energy]… The minister is just repeating the requirements of the law.

Chris Yelland, EE Publishers

We’ve got a surplus [of electricity] at the moment…

Chris Yelland, EE Publishers

We need baseload power that can be built in a flexible manner.

Chris Yelland, EE Publishers

New coal is really out of the question… We need to allow coal stations to die a natural death.

Chris Yelland, EE Publishers

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Article brought to us by Old Mutual.


This article first appeared on 702 : 'Problem child' PetroSA lost R14.5 billion in a year (on a single project)


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