adminfuel retail sites around the country, contrary to claims by some dealers in what might touch off a bruising fight.
In an interview with The Herald Business at the weekend, Mr Mutasa vehemently denied making any changes to the agreements that existed prior to the acquisition of BP Zimbabwe assets by FMI Zimbabwe, a unit of Masawara Plc.
The dealers had claimed that they have been disempowered by a series of changes that have occurred since Masawara acquired the assets of BP Zimbabwe. The acquisition involved 72 retail sites in addition to storage capacity.
In their letter of appeal to Government through lawyers Dhlakama B and Attorneys, the dealers said attempts to discuss their grievances with FMI management had failed.
They lease fuel service stations from FMI Energy, a subsidiary of FMI Zimbabwe. They have now appealed to the Youth Development Indigenisation and Empowerment Minister Saviour Kasukuwere to intervene.
In correspondence dated September 28, 2011 the dealers claimed FMI Energy had limited lease agreements to one-year contracts without the option of renewal.
“With all due respect, it is unjust and impractical to grant a short-term lease of one year to dealers who have been in operation for at least 10 years on average. Such tenants have a legitimate right to have a lease agreement of at least five years or renewable lease contracts, to say the least,” they said.
The dealers also claimed that FMI Energy no longer repaired or maintained equipment to ensure smooth running of operations and were “evasive” on this issue.
As a consequence of the FMI’s failure to service the pumps at dealer-run sites, the dealers claimed they were now experiencing frequent dispensing losses.
They also claimed FMI Energy had managed to force out dealers at Matlock Service Station, Chnhoyi Street, Braeside Service Station, BP Coventry Road, Matthew’s Garage, Belgravia and Groombridge.
“During the old era, the respondent operated a fully integrated company and was not in any way involved in fuel retailing to the public,” the dealers claimed.
But Mr Mutasa denied most of the claims, including allegations that they were offering short leases. He said FMI had not issued any new leases, as the existing lease agreements were historical leases issued by BP Zimbabwe.
“Every single lease that is there is a historical lease and all of them are one year leases. So I think they are being unfair when they say I am issuing restrictive leases. I have not issued one lease. It would be different if I had issued one. It is BP Zimbabwe who changed leases to one year,” he said.
The business mogul, who owns the Joina City, said FMI would always strive to honour its obligations, including training and equipping dealers with critical entrepreneurial skills, repairing and maintaince of equipment.
Online Reporter