/file/attachments/orphans/amaB-Susan-PetroMAIN_798399.jpg)
PetroSA Faces Provisional Liquidation After Disastrous Nako Energy Debt Settlement
State-owned fuel company PetroSA faces potential provisional liquidation after a Parow head office debt-settlement meeting resulted in its exposure ballooning from an initial R227-million advantage to an estimated R1.4-billion liability, according to reporting by amaBhungane.
How a R227-Million Advantage Turned Into a R1.4-Billion Liability
The May 2025 meeting was convened to settle long-outstanding debts between PetroSA and junior fuel trader Nako Energy. According to investigative reports, PetroSA owed Nako R605-million for a June 2024 petrol cargo tainted with the chemical additive N-methylaniline (NMA). Meanwhile, Nako owed PetroSA R832-million for an unpaid diesel cargo. Rather than leveraging its R227-million net upper hand, PetroSA agreed to buy 11 additional unleaded petrol cargoes at a 45c-per-litre discount, intending to eliminate Nako’s debt once 505 million litres were sold. When PetroSA’s then interim CEO Sesakho Magadla defended the arrangement in Parliament, she stated that the commercial settlement balanced mutual obligations to prevent PetroSA from suffering losses.
The Cession to Plane Tree Capital and the Threat of Liquidation
The settlement quickly unravelled when Nako ceded its newly signed acknowledgement of debt to its lenders, Plane Tree Capital. According to amaBhungane, PetroSA believed opposing debts would cancel each other out, but instead found half its debt transferred to Nako’s creditors. On Friday, 11 September, Nako approached the Western Cape Division of the High Court for an order placing PetroSA under provisional liquidation, according to an internal staff memo circulated by acting CEO Nombulelo Tyandela.
Did you know?
Legislative Intervention and the South African National Petroleum Company Bill
PetroSA’s remaining hope relies on Parliament passing the South African National Petroleum Company Bill, which would roll all its debts into a new state-owned enterprise, funded by the taxpayer.
Frequently Asked Questions
Why did PetroSA struggle to sell the petrol bought from Nako?
The fuel was tainted with high levels of N-methylaniline (NMA), causing it to react with car paint and requiring vehicles to be repainted, prompting TotalEnergies, Caltex, Shell, and Engen customers to complain.
How much does PetroSA currently owe Nako’s lenders?
Nako ceded its debt book to Plane Tree Capital, including the R605-million acknowledgment of debt.
What is the South African National Petroleum Company Bill?
It is proposed legislation that would roll PetroSA’s debts into a new state-owned enterprise.
What are your thoughts on the financial management of South Africa’s state-owned enterprises? Share your views in the comments below, explore our archive for more investigative reports, and subscribe to our newsletter for updates.
Keep reading