ActionSA to probe how UPL clinched R17bn deal despite environmental scandal

ActionSA has called for a probe into Resolve Communications and its client UPL South Africa, which recently struck a R17bn infrastructure deal with Infrastructure South Africa.

According to the party, the deal was made despite UPL’s environmental scandal and the company having allegedly played a central role.

ActionSA national chair Michael Beaumont detailed how a senior public official blew the lid off the matter, alleging how the said official was apparently approached by a member of cabinet and reportedly told not to pursue the UPL matter and to “back off”.

This follows an investigation by AmaBhungane, which reported that the UPL warehouse contained millions of litres of toxic chemicals, including highly potent neurotoxins and human carcinogens, exceeding the quantities that could legally be stored without the required environmental authorisation.

“The subsequent fire and chemical spill contaminated water systems and surrounding communities, with devastating consequences for the environment, the economy and public health,” said the report.

Our probe seeks to answer a simple but deeply troubling question about how a company that has yet to face any consequences from either the national or provincial government ... for the devastating toxic chemical spill in eThekwini has found itself engaging with government on a multibillion-rand infrastructure deal

—  Michael Beaumont, ActionSA national chair

If true, Beaumont said, this would constitute an extremely serious allegation of political interference and warrants an immediate investigation.

In addition, ActionSA has described it as worrying that UPL has not publicly disclosed the full inventory of the toxic chemicals that were stored at the facility near a shopping centre and school.

“This, while concerns have repeatedly been raised regarding attempts to downplay the extent of the disaster and the company’s responsibility for its consequences,” he said.

Beaumont’s party has since launched an investigation, also into the role played by Resolve Communications, which they believe acted on behalf of UPL during the fallout from the disaster in order to manage public scrunity.

“Our probe seeks to answer a simple but deeply troubling question about how a company that has yet to face any consequences from either the national or provincial government, both led by GNU arrangements, for the devastating toxic chemical spill in eThekwini has found itself engaging with government on a multibillion-rand infrastructure deal.”

He said the party was also concerned about the high-level efforts to shield UPL from accountability.

South Africans cannot accept a situation where corporations implicated in devastating environmental harm appear to enjoy privileged access to government while affected communities continue to live with the consequences of environmental destruction

—  ActionSA

“While many questions remain unanswered, it is concerning that Infrastructure South Africa supported engagements between UPL and a development finance institution regarding financing opportunities linked to a reported R17bn infrastructure initiative.

“Based on publicly available information, this raises serious questions about the due diligence undertaken by government and whether sufficient consideration was given to UPL’s environmental record.”

The party vowed to use oversight mechanisms available to it, from parliament to the municipality of eThekwini, to gain access to all relevant information and determine whether governance processes were followed.

“South Africans cannot accept a situation where corporations implicated in devastating environmental harm appear to enjoy privileged access to government while affected communities continue to live with the consequences of environmental destruction.

“Government owes the public complete transparency and those responsible must be held fully accountable.”

Resolve has dismissed ActionSA’s allegations as politically motivated, insisting its work for UPL South Africa has been limited to crisis communications and stakeholder engagement after the 2021 Cornubia warehouse fire.

The firm said it was appointed after UPL became one of the businesses affected by the July 2021 unrest in KwaZulu-Natal and has since assisted the company in communicating the progress of what it describes as South Africa’s largest privately funded environmental rehabilitation project, valued at more than R700m.

Resolve said its work involved helping UPL engage with parliament, national and provincial government departments, regulators and multi-stakeholder forums by providing updates on the environmental clean-up. It argued that ActionSA’s claims ignored the extensive rehabilitation work that has been undertaken and documented publicly.

The company also denied facilitating privileged political access, saying it had merely assisted UPL in requesting meetings with former forestry, fisheries and environment ministers Dion George and Willie Aucamp, as well as deputy minister Narend Singh. It said the ministers declined the requests, while Singh’s later engagements were with government departments, municipalities and independent environmental specialists rather than UPL executives.

Resolve further rejected suggestions that it played any role in UPL’s proposed $1bn investment in a South African biofuels facility, saying it became aware of the announcement only when it was made publicly at the South African Investment Conference hosted by President Cyril Ramaphosa.

The firm said ActionSA’s claims amounted to an attempt to score political points at the expense of a private company and maintained that major private investment in South Africa should be welcomed.

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