Picture: Sunday Times
Picture: Sunday Times

The board of troubled state-owned oil company PetroSA has asked its holding company, the Central Energy Fund (CEF), to place it under business rescue, raising questions over its status as a going concern.

PetroSA has suffered huge financial losses over the past three years, but it is unprecedented for a state-owned entity to ask to be placed under business rescue.

PetroSA has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year.

Despite these losses, PetroSA paid out large performance bonuses to its executives at the end of 2016, linked to the Ikhewzi project, responsible for a near R15bn impairment in financial 2014-15.

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