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They alleged that certain officials in the Ministry of Energy and Power Development are involved in “administrative sabotage” with a negative impact on fuel companies.
This has resulted in the breach of an agreement signed between Government and some investors for the smooth and cheap transportation of fuel, aiding a thriving black market while compromising quality control measures.
Sources accused the officials of conniving with European oil companies to monopolise the Feruka Pipeline.
It is understood that the officials, with the help of the oil companies, caused the closure of INPETRO complex in Beira, Mozambique.
INPETRO’s giant oil storage facility, which is linked to the Feruka Pipeline, is jointly owned by Government, Independent Petroleum Group of Kuwait and Petromoc.
Petromoc is a parastatal owned by the Mozambican government.
Zimbabwe and Mozambique signed an agreement on the development of the Beira Corridor which included the fuel tanks at INPETRO complex.
President Mugabe and his Mozambican counterpart Armando Guebuza commissioned the tanks on 21st December, 2007 to receive fuel imported from the Middle East and Equatorial Guinea before it is pumped into the Feruka Oil Refinery in Mutare for refining en route to Msasa Depot in Harare for distribution.
Zimbabwe had a 40 percent stake in the project, while IPG and Mozambique controlled 40 percent and 20 percent respectively.
The facility can hold 90 million litres of fuel.
Zimbabwean officials allegedly scuttled the arrangement to make way for other companies outside the agreement.
The sources said these changes were effected after the formation of the inclusive Government.
Industry sources also queried the emergence and subsequent dominance of two British companies, Glencore and Trafigura, who were outside the agreement.
Two other oil companies, Galana and Litasco from the Middle East, have also been fingered in the scam.
A meeting between officials from the then National Oil Company of Zimbabwe, IPG and Petromoc was convened and a two-thirds majority queried the involvement of companies outside the agreement.
Zimbabwe, which was represented at the highest level, supported the inclusion of other companies, leading to an impasse.
This development saw IPG barring all Zimbabwean companies from using the INPETRO facilities.
Trafigura, believed to have strong links with some Government officials, built its own tanks at the Beira Port in Mozambique.
The tanks, which are connected to the Feruka Pipeline, are not accessible to all Zimbabwean companies.
Only two Zimbabwean companies (names supplied) have been given unlimited access to the Trafigura facility.
This has raised concern among Government officials that since most of the companies are linked to the British government, Zimbabwe could be at the receiving end if frosty relations between the two countries persist.
“The INPETRO facilities were built as a sanctions busting measure so that Zimbabwe was not reliant on hostile governments,” said a player in the petroleum industry.
“Can you imagine what would happen if these British-based companies are ordered to stop supplying us with fuel? We could run dry in a matter of days.”
Energy and Power Development secretary Mr Patson Mbiriri, who has just been appointed to the post, yesterday said there were changes made in the industry since the construction of INPETRO.
He said Government had opened the fuel market to several players.
“The storage tanks were for use by Noczim alone and not anybody else,” he said.
“We now have a new system where there are other players in the industry and yes we heard that they (new players) are having difficulties in accessing these storage facilities.
“The industry structure has changed and the agreement and contracts must reflect the new dispensation.”
Local suppliers questioned how a few companies have access to the facilities.
“There are Government officials who should be taken to task about how the INPETRO deal was bungled and fuelling incessant increases,” said a source.
“We are being forced to use road transport because the Feruka pipeline has been ‘pirated’ by two companies linked to some Government officials and Trafigura.
“The energy sector officials should explain why the INPETRO facility, built to serve Zimbabwean oil companies, is not benefiting anyone.”
The industry blames political shenanigans for the whole mess. “Zimbabwe needs approximately three million litres of diesel and two million litres of petrol on a daily basis. There are Government officials who are conniving with Trafigura and Glencore,” said the source.
“There is lot of dirty money in this market. People are making serious money by using the grey areas created when the INPETRO deal collapsed.”
There are allegations that people involved are getting between 4 cents to 8 cents for every litre coming into Zimbabwe.
Online Reporter