Mhlatuze Bay Coal Administrators is no longer in charge of a project to help junior coal producers after alleged fraud of at least R5.5 million was uncovered.
|||Mhlatuze Bay Coal Administrators is no longer in charge of a project to help junior coal producers after alleged fraud of at least R5.5 million was uncovered, the department of mineral resources said on Tuesday.
“We are in possession of documentation that clearly demonstrates how a former employee of Mhlatuze defrauded the organisations of huge sums of money,” department spokesman Bheki Khumalo said in a statement.
“Preliminary indications suggest that a sum of R5.5m has over time been fraudulently withdrawn from the bank accounts of Mhlatuze,” he said.
The department removed the administration of the Quattro Programme from Mhlatuze Bay Coal Administrators.
The Quattro Programme ensures four millions tons of coal from junior black economically empowered (BEE) coal producers can go through the Richard's Bay Coal Terminal Company (RBCT) for export.
“The Quattro Programme was introduced because it was impossible for non-RBCT shareholders to use the terminal unless they negotiated for a portion of a shareholder's quota, and they did this by paying nominal terminal handling fees plus a fee to the shareholder for the privilege of using the terminal,” said Khumalo.
“To assist emerging BEE coal producers break into the export markets, RBCT shareholders provided, over a five-year period (2002-2007), a total of four million tons of export allocation for use by junior BEE coal producers,” he said.
Mhlatuze Bay Coal Administrators, a section 21 company, was formed to facilitate the exports logistics for junior coal producers.
Although the department had no oversight role in Mhlatuze, it was the custodian of the four million tons of export coal, said Khumalo.
“As such, we have an obligation and responsibility to ensure that the administration of Quattro is underpinned by a high standard of professional ethics and supported by good corporate governance practices.”
He said the investigation was still ongoing, but it appeared the fraud could amount to more than R5.5m.
Criminal charges had been brought against a suspect and the matter was being handled by the Commercial Crimes Unit in Central Johannesburg.
UBU Logistics would take over from Mhlatuze.
Khumalo said there had been complaints from junior coal producers that the Quattro Programme had mainly benefited traders and some large mining companies and that fronting had taken place.
“This remains a mystery to us because the terms of reference for Quattro unequivocally indicate that the intended beneficiaries of the programme are junior BEE coal producers and that traders and long term commercial users of the Richard's Bay Coal terminal are strictly prohibited from participation in the programme.”
At the end of 2010, the department asked all Quattro members to reapply for their export allocation to try to deal with these complaints.
“The department has completed the evaluation of the applicants and matter will be finalised before the end of the month,” said Khumalo. - Sapa
Source: http://www.iol.co.za/coal-firm-replaced-over-alleged-fraud-1.1038248
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