Question NW2670 to the Minister of Energy

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11 August 2015 - NW2670

Profile picture: Mackay, Mr G

Mackay, Mr G to ask the Minister of Energy

(1)With reference to her reply to question 1821 on 9 June 2015, what (a) were the relevant details of the undertaking between the Central Energy Fund (CEF) and Lesedi Biogas and (b) amount of funding was given to Lesedi Biogas; (2) was the funding to the Lesedi Biogas project stopped due to actual or suspected fraud; if so, (a) when did the CEF become aware of the suspected or actual fraud and (b) when did the funding to this project cease; (3) what (a) steps did the CEF take to recover the funds given to Lesedi Biogas and (b) amount was (i) recovered and (ii) lost; (4) why was the Lesedi Biogas matter only reported to the National Prosecuting Authority in March 2012? NW3101E

Reply:

  1. (a) the undertaking was to further development the project,

(b) the amount spent was R2.2million.

2. (a) No, funding was stopped because the project did not achieve certain required conditions.

(b) funding ceased during May 2009.

3. The matter was reported to the Commercial Crimes Unit for Investigation.

4. The CEF internal investigation commenced towards end of 2010 and was finalized in 2011. The matter was immediately reported to the National Prosecuting Authority after being considered internally.

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