CEF and SFF Welcomes Western Cape High Court Decision on the Sale of Strategic Stock
20 November 2020
To all Editors/News Reporters
For immediate Release
JOINT MEDIA STATEMENT
CEF AND SFF WELCOMES WESTERN CAPE HIGH COURT DECISION ON THE SALE OF STRATEGIC STOCK
Johannesburg- Today, the Central Energy Fund (CEF) and its subsidiary, the Strategic Fuel Fund (SFF) welcomed the Western High Court judgement in reversing the sale of SA’s Strategic Crude Oil Reserves sold in 2015. This landmark victory is a culmination of a series of court proceedings that CEF and SFF Board launched after it discovered that the former CEO of Strategic Fuel Fund (SFF), Mr. Sibusiso Gamede, unlawfully concluded a series of agreements, which resulted in the disposal of South Africa’s 10 million barrels of Strategic Crude Oil Reserves.
In welcoming the Western Cape High Court judgement, the SFF CEO, Mr. Godfrey Moagi said, “We are vindicated by this high court ruling. If these unlawful transactions were left unchallenged, the country would have suffered huge financial losses given the repurchase price of the Oil reserves at the prevailing market rates”. “As a company, we would ensure that all measures are in place to institute consequence management against all employees cited in the case for wrongdoing, particularly those who are still in the employ of SFF,” he added. All traders have agreed that the sale of the strategic crude oil reserves were invalid, And as part of the high court settlement, the Strategic Fuel Fund (SFF), a subsidiary of CEF would refund all monies paid to it with interest accrued.
“As a Group, we are grateful that the Judge ruled in our favour to ensure that the ownership of these oil reverses are retained in South Africa and for its people”, said the CEF Group CEO, Dr Poolo. Commenting further on the Judge awarding the traders a “hedge loss award”, Dr Poolo confirmed that CEF and SFF are taking legal advice with an intent to appeal that part of the judgement.
For more details, please contact:
Mr Jacky Mashapu
Manager Corporate Affairs: CEF Group
Cell: 071 485 6856
Tel: 010 201-4700
CEF SOC Ltd is a private company incorporated in terms of the Companies Act. It controls entities in the energy sector with commercial, strategic, regulatory and developmental roles, housed in four operating subsidiaries.
These are the Petroleum Oil and Gas Corporation of South Africa (PetroSA), the South African Gas Development Company (iGAS), Petroleum Agency SA (PASA), the Strategic Fuel Fund Association (SFF) and the African Exploration Mining and Finance Corporation (AEMFC). Among other corporate functions, CEF manages the Equalisation and the Mines Health and Safety Funds on behalf of the Government.
For more information visit www.cefgroup.org.za