ABOUT 80 private companies contracted by government to drill boreholes in some of the country’s dry rural and urban areas have reportedly confronted authorities demanding that they be allowed to buy fuel for their diesel-powered rigs in local currency.
NewsDay Weekender understands that the State-run oil distributor, PetroTrade, is among the firms getting requests for Zimdollar-priced fuel by borehole drillers, who also want duty-free diesel.
Their demands violate a government policy restricting trade in fuel to United States dollars, which has given importers capacity to ship enough products to meet demand.
In the past few weeks, President Emmerson Mnangagwa has told Zanu PF campaign rallies that government had contracted 80 companies to drill boreholes across the country’s 35 000 villages to improve water accessibility.
Political analysts see the borehole sinking campaign as an electioneering tool by Zanu PF to boost chances of Mnangagwa securing a second term in elections due in a fortnight.
Government sources told NewsDay Weekender that firms on the programme have had access to duty-free fuel, even after recent directives that the facility be cancelled.
Some officials have been querying why borehole drilling firms were being allowed to trample on policies, the sources said.
They cited Prevail International, a firm controlled by Paul Tungwarara, a businessman spearheading the development of Zimbabwe’s US$500 million cyber city in Mt Hampden, among those that have benefited.
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“The duty-free fuel facility is no longer in existence,” a government source said this week.
“But borehole drilling companies like Prevail International have been demanding duty-free fuel despite controversies around the facility. Most companies have benefited from the facility before abusing it. Some of the fuel ended up in private fuel stations across the country,” the source, a high-ranking government official, told this newspaper.
In a letter to PetroTrade dated July 18, Tungwarara said his firm required 400 000 litres of diesel per month “for borehole drilling services and spearheaded by his Excellency, President ED Mnangagwa”.
He said the diesel had to be paid in Zimdollars.
“Prevail International has been awarded a national status tender for borehole drilling services and spearheaded by his Excellency, President ED Mnangagwa,” the letter read.
“However, because this is a fuel-intensive project, we respectfully request your assistance in availing the weekly allocation of 100 000 litres of diesel direct Zimdollar payments bulk fuel. We anticipate that your approval of a weekly Zimdollar allocation towards the purchase of fuel for this borehole [initiative] will enable smoother operations and implementation for the benefit of the nation at large. We appreciate your efforts in our respect and anticipate a favourable response,” he added.
NewsDay Weekender could not get PetroTrade’s response to the request, but Tungwarara confirmed that his firm was looking for duty-free fuel allocation from the State-run oil firm PetroTrade.
“Is there anything wrong with writing that letter?” he exploded after being requested to explain.
“We need that fuel for development, we are drilling boreholes,” the businessman said before launching another tirade.
“Why can’t you look for other stories rather than writing bad stories? You want to extort me. If you want money, just ask and I will assist. Don’t you have other stories to write? Why are you anti-development?” Tungwarara continued.
The businessman’s multi-million-dollar cyber city project in Mt Hampden has also been the subject of controversy.
Tungwarara has been working with billionaire investors on the construction and surfacing of roads at the multi-million-dollar project spearheaded by United Arab Emirates-based business tycoon, Shaji Ul Mulk.
But he has faced accusations of defrauding seven businessmen of US$2 million and allegedly name-dropping Mnangagwa and other top government officials for protection.
This is not the first time that Mnangagwa’s allies have been accused of abusing State funds and facilities.
The Treasury recently launched an intensive investigation on indiscipline rocking Zimbabwe’s fuel industry, where a cartel of fuel companies is out-smarting authorities by providing falsified information on the destination of the precious liquid to avoid paying statutory fees and duties.
