Xolile Sizani, the CEO of PetroSA, was suspended just six months into his role, following his decision to terminate an offshore gas deal linked to politically connected figures, including Lawrence Mulaudzi, a notorious operator involved in the VBS scandal. Sizani’s actions, particularly his refusal to back deals with questionable entities, have raised suspicions that his suspension is politically motivated.
Sizani’s decision to cancel a multibillion-rand contract with EquaTheza Oil and Gas, which was tied to Mulaudzi’s Equator Holdings, occurred on 14 June. The deal involved restarting offshore oil and gas wells previously abandoned by PetroSA. Sizani’s actions were reportedly prompted by concerns over the deal’s failure to meet key conditions and the involvement of politically connected figures, such as Mulaudzi and his associates. Despite Mulaudzi’s quiet exit from the project, the deal continued under the name EquaTheza, with a new political heavyweight, former National Director of Public Prosecutions Bulelani Ngcuka, replacing him.
The PetroSA board has placed Sizani on precautionary suspension, citing three allegations against him that have yet to be investigated. While PetroSA has not provided formal charges, the situation raises questions about the timing and the underlying motives. The suspension follows the exposure of Sizani’s decision to remove the former chief operating officer who had been involved in other controversial gas deals, including a deal with Gazprombank, a Russian entity subject to international sanctions.
Sizani’s actions appear to have threatened the stability of politically tainted gas contracts, prompting PetroSA’s board to act. The case highlights ongoing concerns over corruption and political interference in South Africa’s state-owned entities, with critics questioning whether the suspension reflects genuine misconduct or an attempt to silence resistance to controversial deals.