PetroSA Chairman Kgadima Appointment Rescinded Over Controversy

The South African government’s Central Energy Fund has rescinded the appointment of Tshepo Kgadima as chairman and director of state-owned oil and gas company PetroSA.

“In light of the current controversy the board felt it would be impossible for Mr. Kgadima to carry out the responsibilities of the chairperson of PetroSA effectively,” Sankie Mthembi-Mahanyele, chairperson of CEF, which manages government energy interests, said in a statement.

Kgadima’s recommendation by Energy Minister Tina Joemat-Pettersson has been questioned following allegations that he caused investors to lose money while he was chief executive officer of LontohCoal Ltd., Johannesburg-based newspaper Business Day reported Nov. 24.

An earlier report in the newspaper described and showed a photograph of Kgadima being escorted from its offices after refusing to leave follwowing a confrontation with the newspaper’s editor. Kgadima didn't immediately return a message left on his mobile phone.

Nonhlanhla Jiyane has been appointed as interim chairwoman of PetroSA, the CEF said. “Existing vacancies on the PetroSA Board will be filled in the near term.”

LontohCoal suspended a plan for a $1 billion initial public offering in Hong Kong in 2012. Kgadima told Bloomberg News in an interview that it planned to develop a coal mine in Zimbabwe.

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