PetroSA must move from ICU to normal ward before it becomes healthy, says Radebe

Cape Town – Energy Minister Jeff Radebe won’t intervene too quickly when it comes to fixing loss-making state-owned company PetroSA.

Radebe, who briefed Parliament’s portfolio committee on energy on Tuesday, had to answer questions about the Department of Energy’s role in saving PetroSA by possibly changing the board.

He calmly told the committee that he supports the turnaround strategy of the Central Energy Fund (CEF) – PetroSA’s holding company.

“The strategic issue is to move that entity from ICU to a normal ward before it becomes healthy. That is why I support the CEF group’s turnaround strategy.”

Boston Consulting Group is assisting the CEF in the turnaround strategy, he said.

Radebe shared the view that consequence management should be implemented when required.

"As I indicated in my opening remarks, it is important to be very decisive. Where there is wrongdoing consequences must follow.”

Earlier in the briefing Radebe had told the committee that he would fulfill his part in supporting President Cyril Ramaphosa’s drive to raise $100bn in investment by being decisive and creating policy certainty within the energy department.

• READ: PetroSA said to be on verge of promoting previously suspended officials

Fin24 previously reported about possible changes to PetroSA’s executive leadership. According to sources, three executive positions that do not exist on the company's organogram have been advertised internally and three questionable candidates are poised for the positions.

PetroSA also reported a R1.4bn loss in the 2016/17 financial year.

City Press recently reported that PetroSA may be letting go of 15% of its staff to avoid going into business rescue. Among those to fall are included engineers and energy experts, according to City Press.

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