‘Low risk’. That’s how consultants from the professional services firm Mazars described notorious wheeler dealer Lawrence Mulaudzi in an October 2023 due diligence report, says an amaBhungane report on the News24 site.

It says Mazars made the assessment even though they knew that Mulaudzi had allegedly channelled money to ANC and EFF politicians and that his house and luxury cars had been repossessed over unpaid debts.

Within two months of receiving the due diligence report, the Petroleum Oil and Gas Corporation (PetroSA) had signed two offshore gas deals with Mulaudzi: a R21.6bn deal with Equator Holdings (100% owned by Mulaudzi), and a R5.2bn deal with EquaTheza (30% owned by Equator).

Then, in March 2024, Equator was liquidated for failing to pay a soccer player on Mulaudzi’s Tshakhuma Tsha Madzivhandila team. 

The liquidation of Equator was bad news for PetroSA, but potentially worse news for Mazars, who, as the transaction advisers, had helped to green light both the Mulaudzi deals, as well as a third deal with the sanctioned Russian bank, Gazprombank.

Now PetroSA wants some of its money back and has been advised to investigate whether to have Mazars blacklisted from future government business.

‘A letter was sent to Mazars on the 1 October 2024, requesting a refund of R1 076 720 within seven days,’ PetroSA’s group supply chain manager Comfort Bunting told the internal audit team in October.

‘We also intend to claim back the full amount for the due diligence that was done on the grounds that it may be sub-standard’.

Mazars – now part of the global firm Forvis Mazars – says it stands by its work: ‘We are confident with the process we followed and the quality of the advice provided,’ the project’s lead partner Taona Kokera claimed.

Full amaBhungane report