adminZvamaida Murwira Senior Reporter
CMED (Pvt) Ltd could lose US$2,7 million it paid for fuel last year but which has not yet been delivered. Parliament’s Portfolio Committee on Transport and Infrastructural Development yesterday heard that no progress had been registered in getting either the money or the fuel from First Oil.
This emerged during a familiarisation tour of CMED headquarters, depots and service stations in Harare by the committee, chaired by Epworth MP Cde Amos Midzi (Zanu-PF).
On March 1, 2013 CMED paid US$2,7 million through an offshore account to First Oil for the supply of three million litres of diesel. This was done on the strength of two letters from state petroleum marketer and distributor Petrotrade, which promised delivery upon full payment.
Chegutu MP Cde Dexter Nduna (Zanu-PF) asked why they paid the money into an offshore account and not through the supplier.
CMED managing director Mr Davison Mhaka said they had made a police report.
“Members should note that we were not buying from outside the country, but a company based here at Msasa, Harare,” he said.
“There was confirmation that the fuel was available. We did not transfer money outside the country, but to a CBZ account.”
Mr Mhaka said he would not have released the money if he had not received confirmation from Petrotrade and the National Oil Company of Zimbabwe.
He said CMED’s debtors, including Government, owed them about US$11 million. Mr Mhaka said the Zimbabwe Electoral Commission owed them US$4,5 million, and they in turn owed US$1 million to people they contracted to transport poll materials and officials in last year’s referendum and harmonised ballot.
Mr Mhaka said they were consoled by the fact that Government would eventually pay as it was not an institution that could one day suddenly disappear.
Online Reporter