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Surprise surprise. PetroSA has signed a deal with Equator Holdings, run by ‘political operator’ Lawrence Mulaudzi, to “explore offshore gas reserves and rebuild critical gas infrastructure” alongside our Russian tjommies Gazprombank.

The politically connected businessman signed the R3.8 billion deal at a ‘private signing ceremony’ in December. Naturally, the Daily Maverick was all over this, and reported that Mulaudzi “was a key character in the Mpati Commission’s investigation into corruption and malfeasance at the Public Investment Corporation (PIC) – his name is mentioned 176 times in the final report.”

According to the investigative news outlet, Mulaudzi has also been accused of “channelling money to a company linked to EFF deputy president Floyd Shivambu, and a trust linked to former ANC treasurer Zweli Mkhize.”

Equator Holdings will now take charge of the government’s multibillion-dollar gas plans by funding and rebuilding gas infrastructure in the country.

The deal includes refurbishing the FA offshore platform – which connects offshore gas to pipelines that bring it onshore – and the gas portion of PetroSA’s Mossel Bay refinery. PetroSA confirmed that in each of these cases, Equator will both fund and execute the projects.

It’s the funding part that seems to mystify as Mulaudzi money issues have been well reported – Absa took back his Bentley in 2023 to recoup an outstanding R2.8 million owed to them, and his landlords also tried to repossess his Camps Bay home in the same year to get unpaid rent out of him.

Of course, any businessman can hit a few cashflow wobbles from time to time, but politically well-connected, Russia, Floyd Shivambu, and R3.8 Billion in the same sentence is already enough to raise a few eyebrows.

Mulaudzi however allayed everyone’s fears after the ink was dry.

“Although we cannot disclose the details of the transactions as we are bound by legal confidentiality provisions, we can confidently state that Equator Holding[s] complied with PetroSA requirements… We have every intention to deliver, and we will!”

Daily Maverick, however, seem sceptical over the whole deal, suggesting that “PetroSA appointed the Equator without any evidence that it had either the money or technical skills for a project of this scale”.

The original tender – to fund offshore gas exploration – required up to R21.6-billion. It is unclear how much Equator needs to fund the additional gas infrastructure projects it has been awarded.

The article unpacks the entire process leading up to the ‘private signing ceremony’, and needless to say, features cameos by the usual government people who seem to linger around all the mega-money projects.

Hopefully, Mr Mulaudzi can now get his Bentley back.

[source:dailymaverick]