A Review of the Nigerian Energy Industry

Zimbabwe: Govt urged to investigate Green Fuels Company

Fuel-dispencer05 March 2014, Harare – The Zimbabwean government must investigate operations of Green Fuels (Private Limited), including the manner it was licensed to sell blended fuel without fulfilling indigenisation requirements as well as the value of the investment amid indications it could have been inflated.

Hurungwe West National Assembly representative Cde Temba Mliswa (Zanu-PF) made the call while contributing to a motion moved by Kambuzuma legislator Mr Willas Madzimure (MDC-T), urging government to capacitate the Zimbabwe Anti-Corruption Commission to deal decisively with graft.

Green Fuels is a joint venture between Mr Billy Rautenbach’s Ratings Investments and state-owned Arda at the latter’s estates in Chisumbanje, Manicaland.

The joint venture claims an investment of US$600 million though this figure has been questioned. Further, it is not majority owned by locals as per empowerment laws, and there have been indications that Arda is not benefiting as much from the deal as it has publicly claimed.

“Last week I asked in this House how the company was given a licence when it had not fulfilled the indigenisation requirements as directed by Cabinet. No one answered that question, if anything the leader of the House (Justice, Legal and Parliamentary Affairs Minister Emmerson Mnangagwa) was sketchy about that. It is important that when questions are asked they should be answered,” Cde Mliswa said.

He said Cabinet was clear that the company would only be given the licence when it had fulfilled empowerment obligations yet a licence was still issued by the Zimbabwe Energy Regulatory Authority in terms of the Petroleum (Mandatory Blending of Anhydrous Ethanol with Unleaded Petrol) Regulations, Statutory Instrument (SI) 17 of 2013 and Petroleum Act.

“The question is who then gave the go ahead for the licence to be given to Green Fuel to trade. Secondly the value of the plant that Green Fuel is sitting was said to be US$600 million. Mr Speaker Sir the entire Zimplants plant with Rolls Royce machinery is valued at US$200 million. Who then approved for the equipment to be valued at that amount?” he asked.

Mr Mliswa said it was also necessary to question Zimra on how the Green Fuel plant got into the country.

He said during the inclusive Government, Energy and Power Development Minister Engineer Elias Mudzuri waas fired after he was fingered in underhand dealings at Green Fuels.

– The Herald

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