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New twist to CMED fuel saga

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THE mystery surrounding non-delivery of fuel worth $2,7 million to government fleet manager CMED (Pvt) Ltd took a new twist yesterday.

THE mystery surrounding non-delivery of fuel worth $2,7 million to government fleet manager CMED (Pvt) Ltd took a new twist yesterday with documents at hand showing that the parastatal paid the money to First Oil after getting assurances from two sister parastatals that the commodity was already at Msasa Depot in Harare.

NDAMU SANDU

CMED is battling to recover the money from First Oil for fuel paid for last year.

First Oil had won a tender to supply three million litres of diesel shrugging off other bids by ComOil, Maps Petroleum and Sakunda Energy.

CMED is now accusing its sister parastatals — National Oil Infrastructure Company (NOIC) and Petrotrade — of misleading them to release money to First Oil.

CMED board chairman Godwills Masimirembwa last night said they had issued summons against First Oil and its directors, NOIC and Petrotrade to recover the money.

Petrotrade is responsible for downstream activities, including the selling of petroleum products and lubricants through bulk sales and service stations.

NOIC owns the storage tanks at Msasa Depot.

Documents show that CMED’s bankers had released the money after the NOIC confirmed that it was holding diesel on behalf of Petrotrade.

In a March 1, 2013 letter, NOIC chief executive officer Wilfred Matukeni wrote to CMED’s bankers that the diesel was already available.

“This letter serves as confirmation that we are holding three million litres of diesel on behalf of Petrotrade that has been reserved for First Oil Company at our Msasa storage tanks,” Matukeni said.

Petrotrade had also written to CMED that it was holding three million litres of diesel for First Oil.

“We hereby confirm that we have reserved the above-mentioned volume of diesel on behalf of Globe Investments/ORPSA and First Oil for onward release to CMED upon full confirmation of payment,” Petrotrade acting chief executive officer Tanaka Sikwila wrote in a March 5 2013 letter.

“May you kindly take note that we will irrevocably reserve the product for CMED until payment has been finalised.”

Sikwila said the fuel would be released within 72 hours on receipt of confirmation of payment.

When payment was made, no fuel was delivered with First Oil writing to CMED last month that it was “working to have schedules of product importation upon which we can premise and firm up our commitment to CMED”.

Last week, Transport and Infrastructure Development minister Obert Mpofu tasked the new CMED board chaired by Masimirembwa to recover the money.