New state-owned petroleum company must go ahead without fear of corruption

CAPE TOWN - Mineral and Petroleum Resources Minister Gwede Mantashe says the state needs to set up its new petroleum company without fear that it will fall prey to corruption and mismanagement.

Government-owned petroleum and gas companies are in the process of being merged under the new company while the legislative process is still underway in parliament.

Speaking at the African Energy Week in Cape Town, Mantashe said gas and oil exploration will be ramped up under his leadership as the country looks to diversify its energy mix.

He said a single, state-owned petroleum company is necessary to move the sector forward.

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"I'm not a subscriber to this belief that everything must not be done because there’s corruption. Every activity smells corruption, therefore we must be inactive and do nothing," said Mantashe.

Xolile Sizani - the CEO of the Petroleum Oil and Gas Corporation of South Africa (PetroSA), one of the companies to be merged under the new entity, is currently suspended after only eight months in the job.

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And while Mantashe would not be drawn on this matter, he said there's no suspicion of corruption in the set-up of the national petroleum company.

"We are transparent about how we deal with them. And that makes it appear as if we have more corruption than other people because we are talking about it, we are exposing it and we have put up institutions to deal with them," he said.

Mantashe said PetroSA will not be transferred to the South African National Petroleum Company (SANPC) until it's operationally sound.