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South Africa: PIC defends [Mozambique palm oil refinery] deal with links to Nhlanhla Nene’s son
3:55 CAT | 05 Oct 2018
SA's Finance Minister Nhlanhla Nene arrives at the Zondo Commission of Inquiry into state capture on 3 October 2018. Picture: EWN
Questions have emerged over South Africa’s Finance Minister’s Nhlanhla Nene’s role in a R900 million Public Investment Corporation (PIC) deal which is linked to his son Siyabonga Nene.
Investigations team Amabhungane and the Mail and Guardian revealed the details in a report on Friday.
Nene was the deputy Finance Minister at the time and chairperson of the PIC board when the corporation was approached by his son and his business partner, seeking support for an investment.
The PIC now has a 75% stake in S&S Refineries in Mozambique, a palm oil refinery which is yet to get off the ground.
Documents reveal that Siyabonga Nene and his business partner, Muhammad Mirza, through their company Indiafrec, approached the PIC in 2014 to fund the purchase of a stake in Mozambique’s S&S refineries.
The PIC also paid an R18 million referral fee to Mirza.
However, in the end, Nene junior was written entirely out of the deal and the PIC entered into a contract with Mirza and Mozambican businessman Momade Rasul.
Minister Nene told the Zondo Commission of Inquiry this week that he has never acted inappropriately with regard to PIC investments and denies knowingly acting to promote funding from the corporation for any business involving his son.
The PIC also defended the deal, saying it was done on the basis of satisfactory due diligence.
Source: EWN
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