Forvis Mazars disputes PetroSA deal allegations
10 Feb 2025
Forvis Mazars has refuted claims linking the firm to the troubled PetroSA deals that have come under public scrutiny. In response to allegations raised in a recent AmaBhungane article, the professional services firm shared a statement with Bizcommunity, asserting that its involvement in PetroSA's transactions was misrepresented and its advisory work remains above reproach.
"We remain confident in the process we followed and the advice we provided to PetroSA," Forvis Mazars stated, calling allegations of negligence and overbilling inaccurate.
The firm clarified that it had no role in PetroSA’s selection of business partners, including Lawrence Mulaudzi and Gazprombank Africa.
"At the time of our appointment, PetroSA had already chosen and appointed its partners, and our role was strictly advisory," the statement said.
Forvis Mazars maintains that its due diligence scope was limited to assessing legal status, B-BBEE compliance, and security clearance based on verified external sources.
A financial viability review of the partners, it said, was planned for a later stage but was never conducted because the conditions precedent in the profit-sharing agreements was not met.
No green light
The article also disputed claims that it gave a "green light" to the deals.
Instead, Forvis Mazars pointed out that its structuring of agreements provided for conditions precedent with clear remedies, including termination clauses.
These terms, it said, enabled PetroSA to exit the transactions when necessary.
Regarding allegations of overbilling, Forvis Mazars confirmed that all invoices were reviewed and approved as per industry standards.
"The billing concerns are being addressed directly with PetroSA, and PetroSA has not deducted any fees, nor has Forvis Mazars agreed or undertaken to repay any fees," the firm added.
Standing by the quality of its work
Forvis Mazars denied any knowledge of efforts by PetroSA to blacklist the firm and described ongoing discussions with PetroSA as constructive.
We stand by the quality of our work and remain committed to transparency, professional excellence, and ethical business practices.
The allegations follow an internal PetroSA audit that raised concerns about the firm's advisory role in three major gas deals worth billions of rands, which subsequently unravelled due to financial and governance issues.
While PetroSA seeks answers and potential refunds, Forvis Mazars maintains its innocence and professionalism in the matter.
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