• For more financial news, go to the News24 Business front page.

State-owned oil company, PetroSA has announced that its CEO, Xolile Sizani, has been suspended.

In a statement on Thursday, it said that Sizani was recused from operations pending the outcome of an investigation. No further details were given.

Sizani was appointed in February this year. Former PetroSA chair Nkululeko Poya, who wanted the job, was unsuccessful after he failed to get security clearance from the State Security Agency due to damning evidence of corruption against him during his time at the Railway Safety Regulator. Poya was also investigated by the Hawks over a fabricated court order.

READ | New PetroSA CEO finally appointed following controversy

Minister of Minerals and Petroleum Resources, Gwede Mantashe, had backed Poya for the job. However, the prospective appointment faced increasing opposition from labour groups, who said that Poya had pushed for certain BEE suppliers during his tenure without due diligence.

Sizani appointment was announced a year and a half after former CEO, Pragasen Naidoo, had parted ways with the company.

READ | Loss-making PetroSA paid CEO millions to leave

Before his appointment, Sizani was CEO of the facilities management group Servest as well as the Medipos medical scheme. He was also a manager at Afrox and Sasol.

PetroSA board member and former CEO of Transnet International Holdings, Mmete Fusi, has been appointed acting CEO.

PetroSA has been in financial dire straits for years, recording losses even before its only asset – the Mossel Bay gas-to-liquids plant – ceased production in late 2020, after offshore gas feedstocks ran dry.

In December last year, it was announced that PetroSA had appointed Russian-owned Gazprom as an investment partner to revive its Mossel Bay gas to liquid refinery in Mossel Bay, causing threats of sanctions from foreign banks.

In May, Bloomberg reported that the deal had moved to a feasibility stage.

We live in a world where facts and fiction get blurred

Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.