Probe oil sector, security forces urged
THE Energy Forum (EEF) has asked the investigative wings to take interest in the vulnerability of the Zambian petroleum industry to the problem of fuel smuggling.
The EFF says if not checked this misconduct risks destabilising markets, undermine authority and even capture an industry.
Energy Forum Zambia chairperson Johnstone Chikwanda charged that white collar crime was much organised and had become dangerous on grounds that stakeholders had transportation licences, fuel importation and distribution licences as well as more resources and contacts.
Mr Chikwanda commended Zambia Revenue Authority (ZRA) for smashing a high level fuel smuggling syndicate, noting that one of the oil marketing companies in the syndicate was a listed company on LuSE, and should come clean.
He called upon the investigative wings such as the Anti-Corruption Commission and Drug Enforcement Commission to immediately take interest into the matter, as the country risk losing colossal sums of money through smuggled fuels.
Mr Chikwanda said the discoveries were not isolated incidences, but instead a part of the organized cross border criminal syndicates across the SADC region.
“The size of the illegal fuel market is robust not just in Zambia but also in several other countries, which forms part of a transit corridor to access other countries has suffered from this vice in one way of another,” he said.
He alleged that the fuel smuggling was done using different methods which include making false declaration of the actual volume in the tanker, making false declaration of the type of product in the tanker, making false transit declaration as though the fuel was just passing through Zambia but offloaded in the local market and many more.
“PUMA by virtue of the market share which it commands in Zambia falls in the category of an industry statesman who must be participating in guiding and mentoring young OMCs and the industry as whole, and if the company has been giving a ride to trade partners involved in malfeasance, this is very damaging to its own reputation.
Furthermore, if there are some people who have been illegally using PUMA’s name to smuggle fuel in the country, this must be reported to the law enforcement agencies.”
The energy expert noted that the fuel smuggling was costing the treasury millions of dollars per year in lost revenue, saying the size of the illegal fuel market was robust, and that once an industry had been captured by criminal elements, it becomes very dangerous for everyone including those in authority.
Mr Chikwanda encouraged ZRA not to relent but continue to leave no stone unturned in fighting fuel smuggling, and in addition recognised the efforts of the Energy Regulation Board for being alert and pursue reported cases of some OMCs selling fuel at prices lower than the whole price from TAZAMA.