Peter Matambanadzo Senior Reporter
Three First Oil company directors who allegedly received US$3 million for diesel from CMED (Pvt) Ltd but never delivered it have been arrested and will appear at the Harare Magistrates Court on August 21 to answer to fraud charges.The directors are Alex Mahuni, Maxwell Katunga and Alloys Nyamadzawo.

Their arrest came after CMED, through its lawyers Musunga and Associates, wrote to the Officer Commanding Criminal Investigations Department (Serious Fraud Squad) complaining over the delay in the arrest and subsequent prosecution of the directors and others implicated in the fuel scam.

The lawyers had earlier written to the Attorney General’s Office complaining that the case had been pending for too long despite the docket being   complete.

National police spokesperson Senior Assistant Commissioner Charity Charamba confirmed the arrest of the directors yesterday and said they were facing charges of fraud.

According to a letter from the CID Serious Fraud Squad to Musunga and Associates titled: “The State vs First Oil Company (Pvt) Ltd and others”, the trial will start next month.

“May I advise you that the matter is scheduled for trial on August 21 at Harare Magistrates Court,” reads the letter signed by Officer Commanding CID Serious Frauds Squad Assistant Commissioner Machirori Njodzi on Friday last week.

“All accused persons were accounted for and will appear in court on the date mentioned.”

In the letter of complaint to the police, CMED, through Musunga and Associates, said it was eager to have the suspects arrested and prosecuted.

“As intimated earlier on, we are instructed by the complainant in the above matter viz CMED (Pvt) Ltd Co,” said the lawyers.

“Our client is eager to see the suspects arrested and prosecuted. Our client has, therefore, requested us to find out from you the latest developments in the matter.  We would appreciate your urgent response in the matter.”

CMED wants National Oil Infrastructure Company chief executive officer Mr Wilfred Matukeni and his counterpart at Petrotrade, Mr Tanaka Sikwila, to be prosecuted for their part in the botched deal.

Mr Matukeni and Mr Sikwila are accused of misrepresenting to the parastatal that they were storing three million litres of diesel on behalf of First Oil at Msasa depot when they knew they did not have the commodity.

CMED paid US$3 million to First Oil, but the company, which had won the tender by virtue of its low price of US$1,21 per litre of diesel, has not delivered the fuel two years after receiving payment.

According to correspondence in The Herald’s possession, First Oil deposited more than US$3 million in EBG Hong Kong’s account at the instruction of Petrotrade.

In a letter dated March 5, 2013, Mr Sikwila wrote to CMED confirming that they had reserved three million litres of diesel for First Oil that would be released to CMED upon confirmation of payment.

In the same letter, he emphasised that the diesel would be delivered after the transfer of the money to Micro Petroleum Limited, a sister company to EBG Hong Kong.

An invoice generated by Petrotrade on March 4, 2013 showed that the company’s executives knew EBG Hong Kong which received the payment for the fuel.

The invoice confirmed the payment of US$3,09 million to Mirco Petroleum and the availability of the three million litres that was supposed to be supplied to CMED.

Before CMED Limited floated a tender for the supply of the fuel on March 1, 2013, Mr Sikwila wrote to Micro Petroleum on February 28 confirming that they had reserved three million litres for First Oil.

It is not yet clear how EBG Hong Kong became involved in the transaction, especially after Petrotrade confirmed that the three million litres of fuel were at Msasa and not outside the country.

 

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