On Wednesday, new Energy Minister Mmamoloko Kubayi confirmed the sale of the country's oil reserves in 2016.
Addressing Parliament's energy portfolio committee, Kubayi pledged to return to the committee with the findings of an investigation. She said the decision to sell the stock by the Strategic Fuel Fund was taken without board approval.
Her admission contradicts claims by her predecessor Tina Joemat-Pettersson in 2016 that the reserves were merely on rotation.
John Maytham spoke to Business Day’s Carol Paton for more on the matter.
We have no strategic stock piles anymore.— Carol Paton, Deputy editor at Business Day
What happened was they sold the oil when the price of oil was at rock bottom.— Carol Paton, Deputy editor at Business Day
You don’t sell at rock bottom…. So we are out of pocket in terms of oil and we haven’t repurchased it. The loss has not yet been realised.— Carol Paton, Deputy editor at Business Day
Click on the link below to listen to the full interview...
This article first appeared on CapeTalk : Why SA no longer has strategic oil reserves