ActionSA has announced an investigation into the reported R17 billion infrastructure deal involving multinational agrochemical company UPL South Africa and Infrastructure South Africa, raising concerns about the company’s dealings with the government while it faces scrutiny over the 2021 chemical spill in eThekwini.
In a joint statement released on Tuesday, ActionSA National Chairperson Michael Beaumont and Member of Parliament Alan Beesley said the party would use parliamentary and municipal oversight mechanisms to investigate the reported agreement and allegations of political interference linked to the company.
The party said its concerns stem from information allegedly provided by a senior public official who has come forward as a whistleblower.
According to ActionSA, the official claims they were approached by a Cabinet member and instructed to “back off” and not pursue UPL.
The party said that if the allegation is confirmed, it would amount to serious political interference and should be investigated immediately.
ActionSA also questioned how UPL was able to engage with the government on a major infrastructure initiative despite its alleged role in what it described as one of South Africa’s worst environmental disasters.
The company came under scrutiny following the July 2021 unrest in KwaZulu-Natal when a warehouse storing chemicals in Cornubia, north of Durban, was looted and set alight. The fire resulted in chemicals entering nearby waterways and the Indian Ocean, prompting environmental and public health concerns.
ActionSA referred to findings reported by amaBhungane, which alleged that the warehouse contained millions of litres of toxic chemicals, including substances classified as neurotoxins and human carcinogens, in quantities that exceeded legal storage limits without the required environmental authorisation.
The party further claimed that UPL has not publicly disclosed the full inventory of chemicals stored at the facility and said questions remain about the extent of the contamination and the company’s responsibility.
ActionSA also announced that it would investigate the role of Resolve Communications, a public relations company chaired by former Democratic Alliance leader Tony Leon.
The party alleged that Resolve Communications acted on behalf of UPL during the aftermath of the chemical spill to manage public scrutiny surrounding the incident.
It said its investigation would examine whether corporate influence, political access or public relations efforts contributed to shielding UPL from accountability while the company continued engaging the government on commercial opportunities.
The party also questioned Infrastructure South Africa’s reported support for engagements between UPL and a development finance institution regarding financing opportunities linked to the reported R17 billion infrastructure initiative.
ActionSA said publicly available information raises questions about whether sufficient due diligence was conducted before the government engaged with the company.
It said the government should disclose the nature of its engagements with UPL, explain the decision making process behind the reported infrastructure initiative and clarify whether appropriate oversight was exercised by public officials.
The party added that recent allegations concerning Resolve Communications’ reported influence involving Democratic Alliance ministers made it necessary to establish whether there had been any improper relationship between the government and the multinational company.
ActionSA said it would pursue the matter through Parliament and the eThekwini Municipality to obtain documentation, scrutinise engagements between UPL and government and determine whether governance processes were followed.
The party said communities affected by the chemical spill continue to live with its consequences and argued that the government owes the public full transparency over its relationship with companies implicated in environmental harm.
Neither UPL South Africa, Infrastructure South Africa, nor Resolve Communications had responded publicly to ActionSA’s latest allegations at the time of the statement’s release.
