Cartel bleeds forex auction
TINASHE MAKICHI
A syndicate composed of briefcase fuel companies and fuel players is allegedly accessing forex from the Reserve Bank of Zimbabwe (RBZ) foreign currency auction system under the pretext they want to import fuel into the country.
Business Times has established that instead of bringing fuel into the country, trucks loaded with water are finding their way into the country.
The syndicate also includes some top officials from the Zimbabwe Revenue Authority (Zimra) who are alleged to be relaxing checks at the country’s various border posts eventually giving rise to cases of some fuel trucks being intercepted by the Zimbabwe Republic Police.
This has seen cheap fuel being smuggled from Mozambique, sometimes mislabelled to avoid customs duty, and sold or re-exported for hard currency.
Law enforcement authorities have, however, raised alarm at the recent increase in fuel smuggling cases and efforts have since been intensified to ascertain what has triggered the latest rise.
Preliminary investigations done so far by the Zimbabwe Anti-Corruption Commission (ZACC) together with the Special Anti-Corruption Unit in the Office of the President have unearthed a neatly woven unit involving Zimra officials.
A well-placed source told Business Times that the increase in fuel smuggling cases is now a concern for authorities and there are strong indications some of the companies being implicated in the smuggling of fuel are getting foreign currency from the auction system.
“There are current efforts to ascertain the dynamics around fuel smuggling and the recent increase in these smuggling cases has been a cause of concern,” said the source.
“ZIMRA officials are being implicated in some of the cases but no serious checks are being done at the country’s border posts.”
Added the source: “Surely how can a truck full of water pass through border posts and ZIMRA officials fail to check the contents of the trucks? This has been happening and authorities are now investigating the dynamics around fuel smuggling into the country.”
RBZ Governor John Mangudya recently issued a statement imploring foreign auction participants to uphold principles of good corporate governance and self-discipline to ensure high standards of business ethics and transparency for the stability of the economy in the short to medium term.
In a development aimed at enhancing Zimra’s ability to apprehend fuel smugglers, the authority recently launched an advanced mobile fuel testing system which has since apprehended a fuel smuggler at Chirundu Border Post.
The newly-acquired fuel testing equipment comprises hydrometers, measuring cylinders, dip sticks, dipping pastes and water pastes.
The equipment, which is capable of detecting the nature of the product being imported or exported by a transporter, is a game changer expected to curtail and disarm all fuel smuggling syndicates who have been bringing fuel into the country without paying any duty.
The water paste detects presence of water in the product being tested while the hydrometers measure density to determine whether the product is petrol, diesel or paraffin.
ZACC spokesperson John Makamure said the anti-graft body will leave no stone unturned as it probes fuel smuggling cases.
“We investigate all reported cases of corruption and some fuel smugglers have already been arrested and appeared before the courts. More investigations are underway,” Makamure said.
About 40 fuel companies were recently under investigation by the anti-graft body for using fake bills of entry to smuggle fuel into the country.
This comes after ZACC last year asked a number of fuel companies to explain their dealing in a fuel smuggling investigation that also involved SACU.
The investigation unearthed a well-knit cartel of fuel smugglers that has been using fake bills of entry especially on the Beitbridge Border Post to smuggle fuel into the country.
There are also indications that some of the smuggled fuel is eventually exported to Zambia and the Democratic Republic of Congo.
ZACC and Zimra have been conducting an investigation into reports received, indicating that there has been a massive and expansive operation involving smuggling of significant volumes of fuel, mainly diesel and petrol through a number of our ports of entry.
There are also indications that fuel layers who have been abusing import licenses through importing fuel destined for Zimbabwe but eventually failing to reach the intended destination.
The National Oil Company of Zimbabwe had to institute an investigation on this cartel that has been notorious for importing fuel especially from South Africa at a lower price and end up selling the same product in that same country hence starving Zimbab
