AMABHUNGANE ANALYSIS: Gloves come off between PetroSA and ex-partner, Nako Energy
Nako Energy was once a trusted insider at the state-owned petroleum company. Now, PetroSA accuses its former partner of trying to bully it into paying R606m while neglecting to tell the court that Nako owes PetroSA R833m in return.
PetroSA, a state-owned petroleum company, is battling in the Western Cape high court against its former partner, Nako Energy. The dispute stems from Nako's claim that it is owed R606 million by PetroSA for unleaded petrol delivered in Mossel Bay in June 2024, a fuel that PetroSA accepted but failed to pay for.
Interestingly, a year later, PetroSA acknowledged the R606 million debt, but Nako also owes PetroSA R833 million after purchasing diesel in Durban and failing to pay. If the two debts are offset, Nako would only need to pay R227 million.
PetroSA's acting CEO, Nombulelo Tyandela, pointed out in an affidavit that PetroSA disputes it is indebted to Nako in any amount, arguing that Nako seeks the final winding up of a state-owned company based on a debt acknowledged by PetroSA. Additionally, Tyandela claims Nako is attempting to bully it into a settlement by threatening court action.
The case is more personal, as Nako's CEO, Nqobani Mkhwanazi, was once considered a trusted adviser to PetroSA. PetroSA reportedly bent over backwards to push deals in Nako's direction, even awarding Nako a three-month contract to supply diesel in Durban after receiving letters demanding payment of the R606 million debt.
The R606 million debt arises from a controversial deal signed in 2023 to secure unleaded petrol from Nako at a generous discount. However, Nako failed to mention that the fuel contained a chemical additive, N-methylaniline (NMA), which is banned in several countries. After customers complained about stains on car paintwork, major brands like Total, Caltex, Shell, and Engen refused to purchase fuel from PetroSA, causing the deal to stall.
PetroSA maintains that there was nothing wrong with the fuel Nako supplied, but in court papers, Tyandela conceded that there were concerns about the quality of Nako's fuel. Tests found high levels of NMA, which likely caused the staining, and high levels of gum that can damage car engines.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
