THE Chamber of Mines has called for “urgent intervention” to restore the integrity of the Department of Mineral Resources (DMR) which was implicated in the Public Protector’s report into state capture yesterday.
Former head of the Public Protector, Thuli Madonsela, said in the report that mines minister, Mosebenzi Zwane, had met with Glencore CEO, Ivan Glasenberg in Zurich, Switzerland, most likely with the blessing of President Jacob Zuma.
The meeting was thought to be over the sale of Optimum Coal Mine to Tegeta Exploration & Resources which Zwane is thought to have assisted as well as approved. The Public Protector concluded that Zwane’s conduct may have contravened elements contained in the Constitution relating to executive member ethics.
In particular, it quizzed Zwane’s “irregular” flight activities in which he flew to Dubai from Johannesburg and on to Zurich, but did not seem to make the return trip to Dubai before flying to Johannesburg. The round trip cost about R96,000.
“The minister did not complete his travel itinerary and mysteriously ended up in Dubai, without boarding his scheduled flights from Zurich to Dubai … This may not be in line with the PFMA [Public Finance Management Act],” the report states.
The report states that Eskom prepaid for coal from Tegeta Exploration & Resources so that it could source the balance of the R2.15bn it needed to buy Optimum Coal Mine out of business rescue. Tegeta’s elusiveness about the prepayment for the coal could amount to fraud, the report stated which went on to recommend the establishment of an independent commission of inquiry into state capture.
Mike Teke, president of the Chamber of Mines, said his organisation welcomed an independently selected judicial commission of inquiry. “The chamber has repeatedly raised its concerns – first in private, but more lately in public – about the state of governance in South Africa, particularly as this applies to the allegations of impropriety within the DMR,” the chamber said in a statement.
“The Public Protector’s report provides more detail on these allegations and the alleged improper use of state machinery for nefarious ends,” it said, adding that while South Africa’s judicial and other constitutional institutions’ efforts would “grind slowly”, they did so “… inevitably and inexorably”.
It recognised a commission of inquiry would need at least the 180 days allocated to its investigation, but it added that “… in the intervening period urgent intervention is needed to restore the integrity of the DMR”.
“The chamber will seek urgent engagements with the Presidency and ANC to consider the material damage caused to the international reputation of the South African mining industry by the allegations of impropriety and corruption that have been raised in this report and elsewhere and to take the necessary remedial action,” it said.
