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Takunda Maodza Assistant News Editor
THE US$3 million CMED fuel scandal rages on with First Oil Company pleading with the parastatal to give it more time to import the product more than a year after it won the tender after it allegedly lied that it had three million litres at its Msasa tanks.
This is a violation of the contract it entered with CMED on March 05, 2013.
In a letter to CMED last month, First Oil Company managing director Mr Alex Mahuni said they were making frantic efforts to import the diesel.

“It is with sincere regret that we revert back to you for purpose of providing an update regarding the previously held positions on restoration, recovery and delivery of product (diesel) to CMED (Pvt) Ltd by First Oil Company (Pvt) Ltd. Our silence was motivated by the desire to bring fresh progressive updates rather than repeating ourselves,” reads the letter.

“It is with pleasure that we are happy to advise your good office the change in circumstances which previously affected and prevented us from being fully able to execute performances in the proposals we furnished you with.” Mr Mahuni blamed a Chinese company for the delay of supply of diesel to CMED.

“Our project and SPV has been fully enabled to commence trading. The operating licence and the necessary logistical agreements are in place and for that we are indebted to the indulgence of the Ministry of Energy and Power Development, who took special regard to the need to avail to us the opportunity to make good our obligation to CMED (Pvt) Ltd after the unfortunate and criminal default by the supplier, Micro-Petroleum Global,” he said.

Added Mr Mahuni: “As the business conditions have become conducive, we are working hard to have schedules of product importation upon which we can premise and firm up our commitment to CMED (Pvt) Ltd.

“We therefore request that you indulge us a bit further while we finalise this process. We further suggest that we have fortnightly bulletins of updates as this will reinstate the transaction in anticipation of delivery and performance. This update is made on a without prejudice basis and is meant to address our moral commitment to the transaction regardless of litigation happening elsewhere.”

The scam has since sucked in National Oil Infrastructure Company and Petrotrade chief executive officers Messrs Wilfred Matukeni and Tanaka Sikwila, who confirmed in writing to CMED that First Oil had three million litres of fuel at its Msasa depot when its tanks were dry.
This prejudiced CMED of US$3 million which the parastatal had borrowed from ZB Bank to procure the three million litres of diesel.