OREANDA-NEWS. Sasol has, with immediate effect, terminated its contract with the material handling services company, Khotso Batho Mining Services.

Khotso Batho was found to be in breach of a number of clauses stipulated within its Sasol contract.

The Department of Labour has confirmed, to Sasol, that Khotso Batho failed to make payments due in terms of the Compensation for Occupational Injuries and Diseases Act. The company failed to comply with certain provisions of the Act and was also found to have issued fraudulent Letters of Good Standing to Sasol.

Sasol Ltd CEO, David Constable, said the company would not tolerate acts of fraud or non-compliance. “Sasol is not immune to corruption but in instances such as this, where acts of fraud are identified, we will act swiftly and decisively,” Constable said.

Sasol will report the fraud to the South African Police Service (SAPS), for additional investigation.

Sasol has also initiated a detailed internal investigation into the relationship between Sasol Mining and Khotso Batho. A number of witnesses have been interviewed and the investigation is ongoing.

“Sasol is committed to compliance and good governance. While our internal investigation is not yet complete, I can offer the assurance that any member of staff found to have knowingly facilitated a corrupt or non-compliant relationship with this service provider, will face disciplinary action”, Constable said.

Sasol Mining’s operations have not been impacted by the termination of the Khotso Batho contract. Alternate arrangements have been made and all coal handling services remain on schedule and in accordance with Sasol Mining’s specifications.