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Oil Company of Zimbabwe of misappropriating US$35 million and in the process triggering fuel shortages in the country.
Zimra garnished the US$35 million, which was in the country’s strategic fuel reserves account, after Noczim gave them the green light to do so, the minister alleged.
Minister Mangoma made the claims at a Press conference in Harare.
However, Government sources yesterday accused the minister of breaching statutory requirements by withdrawing US$6 million of debt redemption funds to pay a little-known South African company for fuel during the petroleum shortages.
The officials said only the Head of State and Government had the authority to use redemption funds for strategic purposes.
Furthermore, very little of the five million litres of fuel purchased with the money has been seen in Zimbabwe amid allegations that Minister Mangoma breached tender procedures when awarding the supply contract to the South Afri-can company, NOOA.
Yesterday, Minister Mangoma told the media: “Noczim had stolen US$35 million of Zimra funds between February 2009 and February 2010.
“This was a symptom of malpractice at Noczim.”
He said Noczim allowed Zimra to garnish the account that had funds for the strategic reserve.
Zimra chairman Mr Gershom Pasi last night said they had done nothing wrong in garnishing the account.
“We garnish the accounts of any defaulters without taking any instruction from anyone, just as in the case of Noczim,” he said.
Contacted for comment, Noczim board chair Mr George Chigora said: “I’m out of town, but tomorrow I will give you a detailed report responding to the allegations.”
Minister Mangoma said a forensic audit by Ernst and Young showed Noczim management had committed fraud.
“Noczim also failed to account for strategic reserves and debt redemption levies, failed to account for strategic rese-rves stocks and in addition management has deliberately failed to produce audited financial statements for 2009,” Minister Mangoma said.
Turning to the contentious NOOA deal, he said: “During December 2010 and January 2011 there was virtually no fuel to sell available for Zimbabwe.
“NOOA Petroleum of South Africa offered five million litres of diesel.
“The ministry had in the meantime agreed with Zimra to stop the garnish and make good the amounts due to the stra-tegic reserve levy.”
Minister Mangoma said US$6 million was paid into a Noczim account and transferred into the PetroTrade accou-nt.
Minister Mangoma created PetroTrade and the National Oil Infrastructure Company of Zimbabwe after dismantling Noczim; something that will result in the retrenchment of 106 workers.
He said there was a six-day delay in transferring the funds and the first train to transport the fuel spent more than 10 days at Beitbridge without being cleared.
The ministry, he said, was working hard to restore confidence to fuel suppliers so that they store oil in Zimbabwe.
“The country has 500 million litres of storage facilities, which is more than double those in Beira,” he said.
Minister Mangoma said the fuel in Zimbabwe’s holding facilities could go to Zambia, Malawi, northern Botswana and southern DRC.
Government sources yesterday said Minister Mangoma was trying to downplay the fact that he had authorised payment of US$6 million to a company whose background is not even known by Government.
“He still has not told the nation who NOOA is. Where did they come from? Who approached who?
“Minister Mangoma should also explain what link there is between a firm called Golden Pond and NOOA.”
Investigations yesterday indicated Golden Pond of South Africa is a sister company to NOOA and a few years ago almost benefited from a similar fuel deal when Engineer Elias Mudzuri was the Energy Minister.
“Golden Pond lost out when Noczim and officials on the State Procurement Board raised objections.
“It is odd that this same Noczim is suddenly not good enough for the minister,” said a Government offi- cial.
The source said there were also irregularities in the way Minister Mangoma allowed payment to NOOA from a fund that apparently only the Head of State and Government can authorise.
Online Reporter