Late payment to blame for fuel crisis – supplier
By Guthrie Munyuki, Deputy News Editor
Sunday, 20 February 2011 19:00
HARARE – A South African fuel supplier accused of swindling Treasury of
US$5million, has blamed the late payment by government and natural causes,
for the delays in delivering fuel supplies which were due in January.
Nooa Petroleum has, for the first time, broken its silence and said delayed
payment, delayed release of wagons as a result of this, and derailment on
rail track; largely contributed to the late delivery of fuel to Zimbabwe.
To date, however, Noosa Petroleum has delivered more than 1,5 million litres
of fuel by the beginning of last week , with the remainder on the way.
In early January,the Ministry of Energy tasked PetrolTrade to procure fuel
through Nooa Petroleum, who, in turn facilitated payment to their partner
Mohwelere Trading (Pvt) Ltd.
Noosa Petroleum acted as an agent in the deal.
Mohwelere were supposed to be paid US$4,4 million for the delivery of five
million litres of petrol and diesel within 48 hours but the late release of
money by the government led to the delays in releasing product.
“Payment was made and reflected only on the 24th of January, 2011, as
evidenced by a swift in our possession. This payment was made six days after
the signing of the agreement in Harare, and a full week after wagons had
been allocated to us for loading of product,” said Joel Chikapa Phiri, chief
operating officer at Nooa Petroleum.
“While waiting for payment and for such payment to reflect, there was a
derailment on the rail line leading to the Petromoc loading gantry on the
21st of January, 2011. The ensuing debris was cleared on the 26th of
January, 2011, and the necessary rail line repairs could only be done on the
next day as work was hampered by heavy rain,” Phiri told Daily News in an
exclusive interview.
The agreement which was signed between PetrolTrade and Nooa Petroleum on
January 18 contained clauses – Force majeure, casus fortuitus or vis major –
that free both parties from liability or obligation when an extraordinary
event or circumstance beyond the control of either parties or the legal term
“act of God”, prevents one of the parties from fulfilling their obligation.
Noosa Petroleum sourced the fuel from Mozambique at the height of shortages
that hit the country in January.
“In the agreement between the parties, the seller endeavours to make the
first shipment within 24 to 72 hours of receipt of payment. Due to force
majeure in the form of rain, derailments and other such circumstances, the
first day when a shipment could be made was the 30th of January 2011,
consequently, we were within the 24 to 72-hour window period to load the
first shipment when physically possible on the 1st of February, 2011, and
well within its contractual obligations towards the purchaser,” Phiri said.
He said despite late payment by PetrolTrade, they secured wagons in advance
of payment although the agreement between the two parties required payment
before finalisation of rail logistics.
Phiri said this was done as a result of the urgency conveyed by the
government for the supply of fuel.
“Wagons were allocated to us by CFM on the 16th of January, 2011. These
wagons stood in Mazola at our expense while waiting for funds to be paid for
the payment to reflect in our account as per the agreement so that product
could be loaded.
“We could not acquire a release to secure more wagons for product to be
loaded because payment had not reflected in our account. We had to
constantly negotiate with the wagon allocation administrators to ensure that
wagons for transportation of product were available during a time of acute
shortage as some of the allocated wagons had to be forfeited as a result of
their being empty and taking up space,” said Phiri.
On February 7, Permanent Secretary in the Ministry of Energy and Power
Development, Justin Mupamhanga, told a Parliamentary committee that they
had been “hoodwinked” by Nooa Petroleum who had not delivered fuel within
the agreed 48-hour-window.
He, however, did not tell the same committee the delays in paying Nooa and
derailment in Mozambique at Matola.
Mpumalanga also did not tell the same committee that they released the money
six days later, consequently contributing to the delays in the release of
fuel.
The Parliamentary Portfolio Committee has said it is not entirely satisfied
with the way the deal was handled.
Noosa Petroleum had delivered more than 1,5 million litres of fuel by the
beginning of last week and the remainder was on the way, said Phiri
He said their wagons were held back at the Beitbridge Border Post because
PetrolTrade had used the Noczim account to clear fuel and ZIMRA refused to
release the wagons.
ZIMRA had in January garnished US$35 million from Noczim account to settle
its arrears.