Economist Dawie Roodt has reacted to acting group chief executive (GCEO) of PetroSA, Mapula Modip’s voluntary resignation, which was announced on Wednesday by the state-owned company.
Reports had it that the former acting group chief executive actually resigned because of “personal reasons” albeit, she ought to step down at the end of June after a year at the helm.
However, PetroSA said Modipa would be replaced by Siphamandla Mthethwa – the chief financial officer of PetroSA’s shareholder company, Central Energy Fund – also in an acting capacity until a permanent appointment is made.
Dawie Roodt Slams PetroSA
Meanwhile, South African economist, Dawie Roodt has suggested that it would be better to shut down PetroSA or privatize it to stop taxpayers money being wasted on the state-owned company.
“This is going to cost taxpayers a lot of money if it continues. We have to stop this hemorrhaging. It’s either we have to close down this company or privatize it. The Minister of Finance has to make a decision,” he said.
He added that these ugly movements at a “key state-owned company” like PetroSA are symptomatic of a bankrupt business and typify a continuous hemorrhaging within PetroSA.
“This has become a normal pattern now of state-owned enterprises of an interim structure or CEO taking over another interim structure. PetroSA is a key state-owned company. But this is another example of a bankrupt company hemorrhaging what little is left of it,” Dawie Roodt opined.
Now former CEO, Mapula Modipa succeeded Nosizwe Nokwe-Macoma in November 2015, after the latter left the company four months after PetroSA had put her on suspension over poor investment options, declining revenues and failure to lead the company into the fuel retail market.
In December, the state-owned company also terminated the contract of its chief financial officer, Lindiwe Bakoro, after suspending and probing her for six months over allegations of “poor performance”.
It is pertinent to note that in June 2015, PetroSA declared a record loss of R14.5-billion for 2015 when it presented its yearly financial statements to Parliament – the biggest annual loss faced by any state-owned company since 1994.
This great loss subsequently forced them to run to the National Treasury for loan guarantees, though Treasury is yet to comment on the issue.
Treasury’s spokesperson Phumza Macanda referred all questions to the Department of Energy, who she said was best placed to say what was going on at the parastatal.
PetroSA is responsible for the exploration and production of oil and natural gas, and the production of synthetic fuels from offshore gas in Mossel Bay