ActionSA Launches Probe into UPL South Africa Over R17 Billion Deal and Environmental Disaster

ActionSA has launched a full probe into UPL South Africa, a client of Resolve Communications, following the company's involvement in a recent R17 billion infrastructure deal with Infrastructure South Africa, an entity of the Department of Public Works and Infrastructure (DPWI). The political party stated its investigation seeks to understand how a company alleged to have played a central role in one of South Africa’s most devastating environmental disasters could engage with the government on such a significant infrastructure deal.

"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... Has found itself engaging with government on a multi-billion-rand infrastructure deal," ActionSA stated. The party added that information from a whistleblower suggests a "high-level effort to shield UPL from accountability." ActionSA believes the situation raises serious questions about due diligence and whether UPL's environmental record was adequately considered.

Environmental Disaster Details

An investigation conducted by amaBhungane alleged that the UPL warehouse contained millions of liters of toxic chemicals. These chemicals reportedly included highly potent neurotoxins and human carcinogens. The investigation further claimed that these quantities exceeded legal storage limits and were held without proper authorization. A fire and subsequent chemical spill at the UPL warehouse, located in eThekwini, contaminated local water systems and affected surrounding communities. UPL has not publicly disclosed the full inventory of toxic chemicals stored at the facility, which is situated near a shopping center and a school.

Political Interference Allegations

A senior public official has come forward as a whistleblower, alleging they were approached by a member of Cabinet and instructed to cease pursuing UPL. ActionSA stated this information raises "further concerns about an apparent high-level effort to shield UPL from accountability," according to a party statement. The political party is also investigating the role of Resolve Communications, a public relations firm chaired by Tony Leon, which reportedly acted on behalf of UPL during the aftermath of the environmental disaster. ActionSA stated, "The recent revelations regarding Resolve Communications’ alleged influence-peddling involving DA Ministers, together with UPL’s reported R17 billion infrastructure deal, make it imperative that this probe seeks full answers."

Infrastructure South Africa supported engagements between UPL and a development finance institution concerning financing opportunities linked to a reported R17 billion infrastructure initiative. ActionSA expressed concern about this, stating, "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 emphasized that South Africans "deserve complete transparency regarding the nature of government’s engagement with UPL, the decision-making process that facilitated these discussions and whether any public officials exercised proper oversight before advancing the company’s interests." ActionSA further stated that its probe "seeks to answer a simple but deeply troubling question about how a company that has yet to face any consequences... Has found itself engaging with government on a multi-billion-rand infrastructure deal."

ActionSA's Next Steps

ActionSA will pursue its investigation into UPL South Africa through Parliament and the eThekwini Municipality. The political party stated its 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 multi-billion-rand infrastructure deal." ActionSA indicated that this question is "made even more pressing by information received by ActionSA from a senior public official who has come forward as a whistleblower, raising further concerns about an apparent high-level effort to shield UPL from accountability."

ActionSA noted that 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 R17 billion infrastructure initiative." The party added that "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." ActionSA believes "South Africans deserve complete transparency regarding the nature of government’s engagement with UPL, the decision-making process that facilitated these discussions and whether any public officials exercised proper oversight before advancing the company’s interests."

The party stated that these developments "reinforce the need to establish whether political access, corporate influence or public relations efforts may have contributed to shielding UPL from meaningful accountability while it simultaneously engaged with government on significant commercial opportunities." ActionSA asserted that "the recent revelations regarding Resolve Communications’ alleged influence-peddling involving DA Ministers, together with UPL’s reported R17 billion infrastructure deal, make it imperative that this probe seeks full answers." The party affirmed, "ActionSA will therefore pursue this matter through every available oversight mechanism. From Parliament to the eThekwini Municipality, we will utilise our full legislative access to obtain all relevant information, scrutinise every engagement between UPL and government, and determine whether proper governance processes were followed." ActionSA concluded that "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." The party emphasized that "government owes the public complete transparency and those responsible must be held fully accountable."