Energy minister defends revamp of Central Energy Fund ‘to aid agility’
Mmamoloko Kubayi denies the intention of restructuring is to give her more control over subsidiaries and says aim is to enhance efficiency
The restructuring of the state-owned Central Energy Fund group of companies will overcome the "constraints" in the interaction between them and the ministry, says Energy Minister Mmamoloko Kubayi. The fund is parent to a host of companies including PetroSA and the Strategic Fuel Fund. PetroSA incurred an impairment that is approaching R16.2bn on its failed investment in project Ikhwezi, and the Strategic Fuel Fund unlawfully sold off 10-million barrels of strategic oil stocks to foreign firms at bargain basement prices. Kubayi denied the intention of the restructuring was to bring the troubled group more closely under her control, insisting on Friday the aim was to make the corporate structure more efficient and effective. The minister announced the restructuring during her budget vote speech in the National Assembly on Friday. The restructuring will probably result in each of the subsidiary companies losing their independent status and their boards of directors becoming divisions o...
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