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going to tender earlier this year are yet to be delivered.

The purchase had been authorised by Energy and Power Development Minister Elton Mangoma to “avert” a possible shortage.
Government, through its procurement agent, Petrotrade (PVT) Ltd, went into an agreement with NOOA Petroleum for the supply of five million litres of fuel worth about US$4,4 million.

The agreement was signed on January 19 with provisions of supplies of the fuel within seven to 10 working days.
The deal, however, led to the arrest of Minister Mangoma for allegedly directing the purchase of the diesel without going to tender.

The minister was, however, acquitted of all charges at the High Court recently.
Investigations by The Herald revealed that despite the agreement, NOOA Petroleum has not yet delivered the balance.

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“The agreement had it that NOOA Petroleum would supply the fuel within 10 days. Someone needs to explain why the full consignment has not yet been delivered six months into the year,” a Government source said.

The source said NOOA Petroleum was in breach of the agreement.
PetroTrade acting chief executive officer Mr Griefshaw Revanewako yesterday confirmed the delays in deliveries.

“According to an agreement signed on 19 January 2011, NOOA Petroleum was obliged to deliver within seven to 10 days from date of payment. Payment was effected and acknowledged by the supplier on the 24th of January 2011,” he said.

“NOOA Petroleum/Mahwelere has to date delivered 3 964 574 litres of diesel from a total of 5 000 000 litres, which gives an outstanding balance of 1 035 426 litres.”
Mr Revanewako said his company was in constant contact with the supplier since the last delivery.

NOOA Petroleum last delivered fuel to Zimbabwe on May 16 this year and has cited “rail tanker availability and allocation challenges” for late deliveries.
On PetroTrade’s efforts to get the remaining supplies, he said: “The supply agreement is explicit on dispute resolution and remedies through arbitration in accordance with rules and regulations of The Arbitration Foundation of Southern Africa.”

“Given the slow rate of supply from inception (first delivery was received on 12 February 2011) and a week after expiration of the contract delivery period,” he said.
Mr Revanewako said PetroTrade wrote to the supplier on February 17 this year and reserved its rights.

“The supplier responded on the 14th of March 2011 reserving their rights.”
When two companies in an agreement reserve their rights, they would be presenting their positions, that is, the contractor sighting their reasons for claiming breach of contract, while supplier cannot deliver the product.

“The latest correspondence as of the 30th of June 2011 indicates that the supplier is awaiting allocation of wagons for the balance of the product,” Mr Revanewako said.
The fuel deal stoked fire for Minister Mangoma in February this year when the State Procurement Board said NOOA Petroleum was not among the companies registered to fulfil Government Tenders.

He justified the deal saying Zimbabwe was facing critical fuel shortages and he expected the fuel to be delivered in 48 hours.
Only 20 percent of the fuel was delivered by February 19 raising fears of the company’s ability.

There were also allegations that the diesel from NOOA Petroleum cost at least US$200 000 more than the usual prices at that time.
According to its company profile, NOOA Petroleum (PVT) Ltd is based in Benoni, Gauteng province in South Africa.

The Sasol Oil and Sasol Petroleum Agent runs a trading company, buying office, agency and is involved in distribution and wholesale.
The company — which deals in LPG, Jet A1, petroleum premium and regular, diesel and gas oil — was established in 2007.