Parliament of South Africa
Parliament of South Africa
03/20/2024 | Press release | Distributed by Public on 03/21/2024 06:02
Media Statement: Committee on Mineral Resources Receives Briefings from CEF Group and AGSA on Annual Report and Audit Outcomes
Parliament, Wednesday, 20 March 2024 - The Portfolio Committee on Mineral Resources and Energy today received briefings from the Auditor General South Africa on the audit outcomes of the Central Energy Fund (CEF) Group for the 2022/2023 financial year and the reason for the delays in releasing audit outcomes; and from the CEF Group on its annual report for the 2022/23 financial year.
The CEF Group consists of six subsidiaries, namely: CEF SOC Ltd, iGas, PetroSA, Petroleum Agency South Africa (PASA), Strategic Fuel Fund (SFF) and African Exploration Mining Finance Corporation (AEMFC).
The committee was pleased to note that five of the subsidiaries consistently received unqualified audit opinions with material findings since the 2019/20 financial year. However, AEMFC received a disclaimer audit opinion, which is a regression from the last financial year. As a result, the CEF Group obtained a qualified audit opinion.
The committee further noted that the disclaimer audit opinion of the AEMFC was due to the irregular expenditure of R771 million which was recorded in the company's notes but could not be confirmed by auditors. Nonetheless, the committee welcomed the company's initiative to appoint a Chief Financial Officer to address the challenges to avoid the reoccurrence of the issues experienced in the year under review.
The committee chairperson, Mr Sahlulele Luzipo, said that despite its negative audit opinion, the CEF Group improved from how it was in the past five years. He said: "The Group used to have vacant positions with no direction as to where it was headed and no hope at all. Although attention still needs to be paid to PetroSA and AEMFC as these entities continue to face significant challenges, there seems to be a sense of stability currently."
Furthermore, the committee has welcomed the appointment of the permanent Chief Executive Officer (CEO) at PetroSA, saying that this move will bring about the much-needed stability in the entity. The committee believes that the appointment of a CEO will strengthen the PetroSA's turnaround plans and ensure that the Gas-to-Liquid reinstatement project is realised by 2026.
The committee was pleased with progress on the merger of the IGAS, SFF and PetroSA to form a single company called the South African National Petroleum Company (PASA). The committee said it is important to note the appointment of Board members and a company CEO. It is anticipated that the merger would be effective by August 2024.
Lastly, individual members of the committee across political parties extended their farewell messages and well wishes to the CEF Group as this was the last meeting of the committee in the sixth Parliament. Mr Luzipo thanked the Minister, the Department of Mineral Resources and Energy and its entities, as well as committee support staff for their cooperation and hard work during the 6th administration.
He further thanked the Presiding Officers of the National Assembly, stakeholders, members of the media as well as South Africans in general for their support and opportunity to serve the country in such capacity as the committee chairperson.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES AND ENERGY, MR SAHLULELE LUZIPO.
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Mr Justice Molafo
Tel: 021 403 8444
Cell: 081 424 748
Email: [email protected]
The CEF Group consists of six subsidiaries, namely: CEF SOC Ltd, iGas, PetroSA, Petroleum Agency South Africa (PASA), Strategic Fuel Fund (SFF) and African Exploration Mining Finance Corporation (AEMFC).
The committee was pleased to note that five of the subsidiaries consistently received unqualified audit opinions with material findings since the 2019/20 financial year. However, AEMFC received a disclaimer audit opinion, which is a regression from the last financial year. As a result, the CEF Group obtained a qualified audit opinion.
The committee further noted that the disclaimer audit opinion of the AEMFC was due to the irregular expenditure of R771 million which was recorded in the company's notes but could not be confirmed by auditors. Nonetheless, the committee welcomed the company's initiative to appoint a Chief Financial Officer to address the challenges to avoid the reoccurrence of the issues experienced in the year under review.
The committee chairperson, Mr Sahlulele Luzipo, said that despite its negative audit opinion, the CEF Group improved from how it was in the past five years. He said: "The Group used to have vacant positions with no direction as to where it was headed and no hope at all. Although attention still needs to be paid to PetroSA and AEMFC as these entities continue to face significant challenges, there seems to be a sense of stability currently."
Furthermore, the committee has welcomed the appointment of the permanent Chief Executive Officer (CEO) at PetroSA, saying that this move will bring about the much-needed stability in the entity. The committee believes that the appointment of a CEO will strengthen the PetroSA's turnaround plans and ensure that the Gas-to-Liquid reinstatement project is realised by 2026.
The committee was pleased with progress on the merger of the IGAS, SFF and PetroSA to form a single company called the South African National Petroleum Company (PASA). The committee said it is important to note the appointment of Board members and a company CEO. It is anticipated that the merger would be effective by August 2024.
Lastly, individual members of the committee across political parties extended their farewell messages and well wishes to the CEF Group as this was the last meeting of the committee in the sixth Parliament. Mr Luzipo thanked the Minister, the Department of Mineral Resources and Energy and its entities, as well as committee support staff for their cooperation and hard work during the 6th administration.
He further thanked the Presiding Officers of the National Assembly, stakeholders, members of the media as well as South Africans in general for their support and opportunity to serve the country in such capacity as the committee chairperson.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES AND ENERGY, MR SAHLULELE LUZIPO.
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Mr Justice Molafo
Tel: 021 403 8444
Cell: 081 424 748
Email: [email protected]