South Africa starts Nigerian oil deal investigation

Three prominent Eastern Cape personalities alleged to be beneficiaries of an allegedly irregular multi-million-rand Nigerian oil deal are all related. The named beneficiaries are: Hintsa Siwisa, (brother-in-law of Eastern Cape Premier Makhenkesi Stofile); the Eastern Cape Anti-Poverty Foundation (headed by Stofile's wife, Nambita); and Tor Trading, an Eastern Cape women's group that includes Nosipho Damasane, general manager Eastern Cape of the South African Ports Operations.
The callers claim that Damasane is related to Siwisa and the Stofile family, and the claims that Damasane did not know about the oil deal were "hogwash".

A lucrative oil contract, which was secured with President Thabo Mbeki's help in 1999, was diverted to an offshore company with no benefit to South Africa. Initially the government had announced that the deal -- involving the right to lift, or market, Nigerian crude oil -- would benefit "the people of South Africa". The government-to-government contract was a first between the countries and was announced in Parliament by Minerals and Energy Minister Phumzile Mlambo-Ngcuka.
Kenya and Ghana were the two other countries vying for the contract, that Nigeria awarded to the South African Oil Company (SAOC). But the deal would benefit only the directors and shareholders of SAOC.

Damasane said that she knew nothing of the oil company. Siwisa confirmed his and Mrs Stofile's involvement and said the local entity had enjoyed some benefits from the deal.
United Democratic Movement spokesperson Mabandla Gogo said: "In light of this scandal there is a need for families of public representatives to declare their interests." Gogo said at the moment the law provides for elected members only to declare their interests.
"There is a loophole in this law because if Stofile's wife benefited from the alleged oil deal, Stofile also has benefited," Gogo claimed. He said an investigation was needed.