Mangoma botched fuel deal explored

THE fuel that Energy and Power Development Minister Elton Mangoma is said to have illegally ordered from a little-known South African firm was more expensive than getting the commodity through Beira, Mozambique, Parliament heard yesterday.
Presenting oral evidence to the House of Assembly Portfolio Committee on Mines and Energy in Harare yesterday, National Oil Company of Zimbabwe officials indicated that the deal cost at least US$200 000 more than if the fuel had been bought from Beira.
Only 1,4 million of the five million litres ordered from South African firm NOOA have reportedly been delivered.
The deal has resulted in the minister's arrest and he is expected to be back in court today to find out if his bail application has been successful.
Minister Mangoma is accused of abusing his position by entering a deal without going to tender.
Senior Noczim managers yesterday told the Com­mittee on Mines and Energy that they were not consulted when the deal was signed.
Noczim procurement director Mr Clever Maodzwa said, "It is cheaper to get the product from Mozambique, transport it to Harare and then move it to the Southern regions."
The fuel was meant for Zimbabwe's southern region. Mr Maodzwa said the price of fuel at Beira between December and January last year ranged from 73 US cents to 76 USc per litre.
He said it cost 5,7 USc per litre to transport it by pipeline compared to 6,7 USc by road.
At the most, he said, buying fuel through Beira would have cost 84 USc per litre against the 88 USc charged by NOOA.
This means, using the highest possible cost from Beira, the South African fuel would still have cost at least US$200 000 more.
Uzumba legislator Cde Simbaneuta Mudarikwa (Zanu-PF) said it was unacceptable for Government to buy expensive fuel that resulted in increase in prices of basic commodities.
Noczim acting chief executive officer, Ms Tendai Mangezi, said they only facilitated release of the funds to NOOA.
"Noczim was never part of this particular transaction and we do not have any information to that," she said.
Minister Mangoma allegedly ordered the release of the funds at the height of fuel shortages during the fes­tive season.
Ms Mangezi said because Zimbabwe did not have any lines of credit to guarantee uninterrupted supply, Zimbabwe would remain susceptible to similar shortages in future.
"The shortages were caused by the way we operate, we live from hand-to-mouth and this cannot guarantee unin­terrupted supply."
Turning to the unbundling of Noczim, Ms Mangezi said the company had been split into PetroTrade and the National Oil Infrastructure Company of Zimbabwe.
PetroTrade is responsible for retailing fuel while Noiczim operates oil infrastructure, which includes the pipeline from Beira and storage facilities in Mabvuku and Msasa.
Ms Mangezi said of the 378 former Noczim employees, 122 had been transferred to PetroTrade, 151 to Noiczim and 105 would be retrenched.
She said Government had reversed an earlier decision to wind up the operations of the old Noczim but would let it operate as a shelf company responsible for its debts.
These include US$26 million owed to Nordia Bank of Sweden; US$43,5 million to Libya Arab Foreign Bank; US$2,3 million to BP South Africa; US$2,7 million to Caltex; and US$500 000 to Engen South Africa.