Forvis Mazars, the international professional services group, has denied that it had a role in the selection of PetroSA’s R3.7 billion tender award to the Russian company Gazprombank, which has since landed in court after another bidder alleged irregularities in the tender process.
The tender, awarded by PetroSA in November 2023 despite concerns about sanctions, was for Gazprombank to refurbish the gas-to-liquids refinery in Mossel Bay, which has been closed since 2020 due to depleted gas feedstock.
In a statement on Monday, Forvis Mazars, in rebutting a report by the AmaBhungane publication, said it had no role in PetroSA’s partner selection process.
“At the time of our appointment, PetroSA had already chosen and appointed its partners, and our role was strictly advisory,” it said in a statement.
It stated that the scope of their initial due diligence report was limited to legal status, B-BBEE compliance, and security clearance. It added that the scope of the initial due diligence did not include financial due diligence, nor were they required to assess the financial viability of PetroSA’s partners.
This was to be performed only after the feasibility study had concluded. “As the conditions precedent in the profit-sharing agreement were not met, we did not perform the planned in-depth due diligence.”
“In fact, it was our work on the structuring of the agreements, which included conditions precedent, that had clear time-lines and remedies, including termination clauses, that resulted in PetroSA terminating the transaction with the selected partners,” Forvis Mazars said.
BUSINESS REPORT