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In light of recent news that the ANC stands to benefit financially from fracking, Mineral Resources Minister Susan Shabangu must commit herself to ensuring transparency in the allocation of fracking rights.
We today call on the Minister to release the report of the governmental task team which investigated the controversial gas extraction technique, hydraulic fracturing (fracking). The report was due to be delivered to Cabinet at the end of March, but has not been made public.
Minster Shabangu must also explain why representatives from the departments of Environmental Affairs and Agriculture were excluded from the task team. This exclusion is puzzling since the environmental impact and its potential consequences for water quality and agricultural activity go to the very heart of the fracking debate.
I will today be writing to the Minister to request the immediate release of the report and will be questioning her in Parliament on the composition of the task team.
The process governing applications for fracking exploration remains shrouded in mystery.
In February this year, Minister Shabangu argued that the Promotion of Access to Information Act (PAIA) does not allow public access to the minutes or research documents of the task team she set up to investigate fracking. Why the Minister would want to keep this information from the public is not immediately apparent.
Earlier this week, the Democratic Alliance (DA) learned that the ANC potentially stands to earn a fortune if the moratorium on fracking exploration in the Karoo is lifted because the ANC-linked Batho Batho Trust has a 51% stake in Thebe Investments (Shell SA’s local empowerment partner). Thebe’s chairperson, Vusi Khanyile, recently accompanied President Jacob Zuma on a state visit to Britain. Through Thebe, the Batho Batho Trust effectively has a 12% stake in Shell SA Refining, and a 14% stake in Shell SA Marketing. Shell is currently an applicant for three gas exploration licences.
While these applications are not currently being processed due to the moratorium instituted in April 2011, they will be considered for approval if and when the moratorium is lifted.
The Batho Batho Trust was established 20 years ago by ANC members, and continues to provide donations to the ANC today. The political relationship between Batho Batho, Thebe Investments and the ANC constitutes a clear conflict of interest.
If the government wants to avoid allegations that it is sitting on the fracking report because its conclusions do not suit the financial agenda of an ANC-linked Trust, then Minister Shabangu will release the report without delay. The DA will continue to apply pressure until she does so.