HomeNewsKasukuwere turns heat on Mutasa

Kasukuwere turns heat on Mutasa

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Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere says Mawasara Plc subsidiary FMI Energy Zimbabwe must comply with the indigenisation regulations by setting up an employee share scheme.

FMI energy owns BP & Shell Marketing Services (BPSMS).

Fuel dealers and former employees wrote to Kasukuwere a fortnight ago raising concern over unfair business practices by FMI Energy Zimbabwe.
The dealers lease service stations owned by BPSMS, a subsidiary of FMI.

Speaking at a media briefing in Harare on Tuesday, Kasukuwere said the concerns raised by BPSMS fuel dealers were being attended to.

“We are making sure that the commitment made at the purchase of BP assets is met,” said Kasukuwere.

“We would like to see the ownership by the employees and the agreed steps in the agreement must be implemented.

“We have received the complaints and they are under consideration.”

Observers said Kasukuwere should not talk, but also implement what is expected of Mutasa.

Kasukuwere said the process of indigenising the local economy was not reversible and there was no going back.

“This is a national policy and I am carrying out a national duty. Zanu PF has always supported the empowerment of the people,” said Kasukuwere.

“Let’s go beyond talk. We want to see the implementation of what was agreed upon.

“That is why I said we are going to witness a launch of a share ownership scheme of BP& Shell,” he said.
BPSMS fuel dealers wrote to Kasukuwere through their lawyers Dhlakama Attorneys, arguing their businesses were being affected by policies implemented by FMI since its acquisition of BPSMS.

The dealers claimed that unlike in their previous contracts, FMI Energy was offering dealers one-year contracts.

Former BPSMS workers also accuse FMI of dragging its feet on a plan to give the employees 10% equity in the company.

Businessman Shingai Mutasa won a bid to acquire BPSMS assets last year.

Early this year, in an investment update, Masawara Plc announced the completion of the acquisition of 100% of BP Zimbabwe (Pvt) Ltd and Shell Zimbabwe (Pvt) Ltd , which collectively own BP and Shell Marketing Services (Pvt) Ltd (“BPSMS” or “the Company”).

The consideration for the acquisition was $30 million and financed through a combination of $8,2 million of cash resources available to Masawara and third party debt-funding arrangements.

“As an investment company, Masawara is not intending to undertake operating activity,” Masawara said then.

“As such, the equity investment will be diluted through a combination of the following measures — the introduction of financial and technical partners; the introduction of an employee share ownership scheme; and the implementation of other economic empowerment initiativesBPSMS is a long-established importer and distributor of petroleum products in Zimbabwe.”

It has the largest storage capacity and widest distribution network for petroleum products in Zimbabwe comprising 70 retail sites and 10 depots across the country. As at December 31 2010, the unaudited value of the property, plant and equipment held by BP Zimbabwe, Shell Zimbabwe and BPSMS was $48 million, with total net assets of $52 million.

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