THE South African Communist Party (SACP) has urged Parliament and the energy minister to launch an immediate investigation into PetroSA’s plans to retrench employees, saying the parastatal "is fast becoming a haven for overzealous tenderpreneurs that continue to mercilessly milk state entities".
The national oil company has been in talks with unions representing its 1,800 employees about its plans to lay off about 40% of its staff, which it said it had embarked on as a last resort to cut costs.
SACP Western Cape provincial spokesman Masonwabe Sokoyi said PetroSA management was "colluding" with service providers and this has led to massive losses at the company.
"The management is colluding to get business with the company. It is our firm view that these tender-prenuers collude with officials to collapse the system of controls and illicitly amass wealth and enrich their personal coffers from the resources of the firm. We want the minister and portfolio committee on energy to investigate PetroSA. They can employ any solution to reduce costs but retrenchments should not be an option."
The planned retrenchments were only about "profit maximisation" and not government commitment to creating jobs.
Reacting to the call, PetroSA spokesman Thabo Mabaso said: "PetroSA is undergoing serious challenges that have compelled us to examine our business model. We therefore are looking at different options, one of which may mean that we could be required to do a voluntary head-count reduction."
On allegations of financial mismanagement, he said PetroSA was committed to good corporate governance and had systems in place to ensure it was adhered to.
A chimney flares at PetroSA's Mossgas facility in Mossel Bay. Picture: THE TIMES
THE South African Communist Party (SACP) has urged Parliament and the energy minister to launch an immediate investigation into PetroSA’s plans to retrench employees, saying the parastatal "is fast becoming a haven for overzealous tenderpreneurs that continue to mercilessly milk state entities".
The national oil company has been in talks with unions representing its 1,800 employees about its plans to lay off about 40% of its staff, which it said it had embarked on as a last resort to cut costs.
SACP Western Cape provincial spokesman Masonwabe Sokoyi said PetroSA management was "colluding" with service providers and this has led to massive losses at the company.
"The management is colluding to get business with the company. It is our firm view that these tender-prenuers collude with officials to collapse the system of controls and illicitly amass wealth and enrich their personal coffers from the resources of the firm. We want the minister and portfolio committee on energy to investigate PetroSA. They can employ any solution to reduce costs but retrenchments should not be an option."
The planned retrenchments were only about "profit maximisation" and not government commitment to creating jobs.
Reacting to the call, PetroSA spokesman Thabo Mabaso said: "PetroSA is undergoing serious challenges that have compelled us to examine our business model. We therefore are looking at different options, one of which may mean that we could be required to do a voluntary head-count reduction."
On allegations of financial mismanagement, he said PetroSA was committed to good corporate governance and had systems in place to ensure it was adhered to.
Post a comment