Paul Vecchiatto BusinessLIVE
The ruling African National Congress (ANC) could earn a "fortune" if the moratorium on shale gas exploration, also known as "fracking" in the Karoo is lifted, says the Democratic Alliance (DA)
The main opposition party on Tuesday also called for the ANC to divest from its holdings in companies that ultimately linked it to a 14% stake in Shell SA Marketing, the local arm of the international oil group that has applied to search for shale gas in a 250,000 square kilometre area of the Karoo.
It was reported this past weekend that the ANC-linked Batho Batho Trust has a 51% stake in Thebe Investments, Shell South Africa's local empowerment partner.
Through Thebe, the Batho Batho Trust effectively has a 12% stake in Shell SA Refining and a 14% stake in Shell SA Marketing.
While these applications are not currently being processed due to the moratorium instituted in April 2011, the applications, among others, would be considered for approval if and when the moratorium is lifted, DA deputy shadow energy spokesperson David Ross said.
Ross also pointed out that Deputy President Kgalema Motlanthe recently indicated that Chancellor House - the ANC's investment arm - should divest its shares in companies that gain from government tenders.
"In the same spirit, the Batho Batho Trust should withdraw its investment from Thebe," Ross said.
He said the political relationship between Shell and Thebe Investments has already made a mockery of the due diligence process to be followed in ascertaining to whom the Petroleum Agency of South Africa should grant fracking exploration rights.
The Batho Batho Trust was established 20 years ago by ANC members with a view to supporting socio-economic development in SA. But the Trust now provides donations to the ANC.
Trust Chairman Kenny Fihla said that the trust's donations to the ANC were in line with its specific transformation agenda.
"This is convenient, but at odds with its initial mandate. KwaZulu-Natal Health MEC Sibongiseni Mkhize happens to be on the board of trustees, for instance. Prominent ANC personality in the Western Cape Chris Nissen emerged as the spokesperson for the Karoo Shale Gas Community Forum (strongly advocating that fracking be allowed).
"This effectively means that government, tasked with regulatory oversight, is compromised in performing its job effectively. It is becoming both player and referee," Ross said.
