JOHANNESBURG – On August 10 this year ArcelorMittal South Africa (AMSA) announced its purchase of Imperial Crown Trading 289 (ICT) for R800m as well as a so-called "BEE" deal with various cronies and family members of the ANC leadership.
AMSA CEO Nonkululeko Nyembezi-Heita told the Mail & Guardian that "both the BEE deal and the ICT acquisition would have to pass an internal due diligence investigation in terms of the United States Foreign Corrupt Practices Act (FCPA) and satisfy South African anti-corruption legislation before coming into force."
Myburgh somewhat cynically notes that that this deal might make it through our local anti-corruption legislation. This is probably based on the highly political nature of the deal and that the minister denied Kumba's appeal. Strange that she did not pay any attention to the Kumba allegations and the apparent gross violation of section 16 of the Mineral and Petroleum Resources Development Act which requires that
a company applying for a prospecting right needs to submit amongst others a budget and documentary proof of the applicant's financial ability or access thereto, which may include but is not limited to the following:
(i) Loan agreements entered into for the proposed prospecting operation;
(ii) A resolution by a company to provide for the finances required for the proposed prospecting operation; and
(iii) Any other mechanism or scheme providing for the necessary finances for the proposed prospecting operation.
My sources tell me that it shouldn't make it through the local legislation, but it will take an expensive court case to clear it – the real issue is that the corruption exists and remains unchecked and the corrupters are still able to hi-jack mineral rights because the original owner does not have an appetite for costly litigation.
Oh and, the story goes that Jacinto Rocha left the DMR to re-build his very tarnished reputation – read Jenny Cargill's book for a character assassination of this oddity.
Paul, the deal will fly just as much as the Cadbury advert flying an ostrich out of a plane. The South African law has eyes and those eyes can clearly see the difference between you, me, celibrity, foreigner and all the Z-ZZEE (B-BBEE). The deal was never about BEE, its was about money pure and simple
Paul, the deal will fly just as much as the Cadbury advert flying an ostrich out of a plane. The South African law has eyes and those eyes can clearly see the difference between you, me, celibrity, foreigner and all the Z-ZZEE (B-BBEE). The deal was never about BEE, its was about money pure and simple