PetroSA scandal deepens

It notes George Sabelo, the lawyer at the centre of the R1bn PetroSA scandal, maintained his silence this week as evidence mounted that he received millions of rands not due to him - suggesting that kickbacks were paid. The Mail & Guardian lifted the lid on the scandal last week, presenting evidence that Sabelo paid an unknown third party much of an R11m 'success fee' he got from the national oil company, supposedly for helping to clinch a West African acquisition. The onward payment raises corruption red flags. According to the report, now Harith, the fund management company central to the second leg of the scandal - PetroSA's intended acquisition of Engen petrol stations - has admitted to making payments to Sabelo, too. Harith is under fire for the outlandish success fee - R371m, later renegotiated to R187m - it stands to earn as PetroSA's transaction adviser for the Engen deal. The M&G last week detailed questionable decisions amounting to about R1bn paid or risked in the course of the West African and Engen deals largely during the tenure of former acting PetroSA chief executive Yekani Tenza. Full Mail & Guardian Online report