CMED Fuels Logo
CMED Private Limited is a state owned enterprise that provide and operate transport, plant and equipment hire services. Established in terms of the commercialisation Act of 2000, the company deals in fuel supply, procurement of vehicles, and training and testing of drivers.[1] In 2014, the company was involved in a fuel scandal where it was reported that it lost US$3 million in a fuel deal that went sour after failing to adhere to procurement procedures. The scam implicated some of the company's top managers who were sent on forced leave.

Goals

The company deals offers a number of services which are Equipment Hiring, Fuel Selling and Distribution, Driver Training, Reconditioning and Transport Hire. It has the following goals:

  1. To be a customer focused organization .
  2. To continuously improve internal business processes through the aggressive use of ICT.
  3. To inculcate an innovative and learning culture within the organisation.
  4. To achieve financial sustainability.[2]

Scandals

In February 2014, the company made headlines when it was reported that the company was swindled UU$300 in a botched fuel deal. CMED allegedly paid US$3 million upfront for the supply of three million litres of diesel by First Oil.[3] The deal however went wrong leading it to spill first in court then in Parliament. The deal also sucked in two other state-owned firms – Petrotrade and National Oil Infrastructure Company (NOIC). A Hong Kong fuel company , Micro Petroleum allegedly received $2,7m for the purchase of the three million litres, but never delivered the product. In May the scam deepened with the company summioned to parliament. The company's loss control manager, Kapini Chigogo told Parliament’s Portfolio Committee on Transport and Infrastructural Development that managing director Mr Davison Mhaka did not follow the procedures when he picked the supplier. He alleged that Mhaka picked First Oil to supply fuel without going through the State Procurement Board. One Mr Chigogo who was against the deal and reported the matter to the police, allegedly received death threats over the evidence he gave in Parliamnet. Fuels manager Brian Manjengwa was then sent on forced leave on full benefits four months ago to pave way for internal investigations.[4] The forced leave was based on the non delivery of the fuel.

In 2010, the company failed to account for 19 vehicles that allegedly vanished in Harare. This led the government o set up an inquiry which revealed poor record keeping at the company. A Value for Money Report compiled by the Comptroller and Auditor-General revealed that this poor record keeping was the very cause that saw company losing track of 19 vehicles in Harare alone. The vehicles' movement from the company's head office to Harare province, was untraceable according to the report.[5]

References

  1. Introduction, 'CMED', Retrieved: 19 May 2014
  2. Our Goals, 'CMED', Retrieved: 19 May 2014
  3. Richard Chidza, Bank financed fuel scandal, 'The Zimbabwe Mail', Published: 8 Jan 2014, Retrieved: 19 May 2014
  4. Peter Matambanadzo and Zvamaida Murwira, US$3m scandal rocks CMED, 'Herald', Published: 19 May 2014, Retrieved: 19 May 2014
  5. Chris Muronzi, CMED fails to account for vehicles, 'The Independent', Published: 10 Jun 2010, Retrieved: 19 May 2014