National Oil Company of Zimbabwe
The National Oil Company of Zimbabwe (NOCZIM) was established in 1983 (in Harare) to ensure the procurement, storage and distribution of fuel and petroleum products for the Zimbabwean market. In 2011, the company was restructured as it was labelled as one of the numerous government owned companies which were sinking and in dire need of reformation. .
Establishment and Expansion
The company was established in 1983 and and it was registered under the Companies Act Chapter 23 Section 4.[1] It was wholly owned by the government. Its main objective was stipulated as being the sole procurer of fuel and petroleum products in the country. [1] The company was also mandated to store and distribute such products to oil companies in the countries such as BP, Shell and Total amongst others.[1]
In 2002, the company entered into a partnership agreement with Tamoil Trading (based in Libya), as a means to curtail fuel shortages which began to be rampant in the last quarter of 1999. [2] Mr Amos Midzi who was the then Minister of Energy and Power Development was credited for bringing about this lucrative deal whose proceeds remain obscure. This saw the re-branding of the company informally into Tamoil Zimbabwe.[2] The deal was short lived and they were erratic supplies of fuel and petroleum products. During this time, the company had incurred debts amounting to about US$345.[3]
In 2011, the company was divided into two companies with separate duties. [4] The company had long been earmarked for possible restructuring as it was targeted as one of the government owned companies which was failing to remit revenues to the national treasury. The then Minister of Energy and Power Development, Mr Elton Mangoma, stated that, NOCZIM was losing money all because the government was reluctant to restructure it. [4]
Mismanagement Scandals
As early as 1999, it was reported that the company was being led by people (civil servants) who were incompetent.[3] This in turn resulted in the erratic supply of fuel and petroleum products in the country. During the last quarter of 1999 it was reported that the company was no longer able to keep the required stock of 60 days.[3] Those in the executive as well as the board members were implicated as being behind the company's failure to fulfil its mandate.
In May 2010, the company failed to remit taxes amounting to US$150 million to the Zimbabwe Revenue Authority.[5] During the same month, it was reported that US$35 million had disappeared from the company's coffers. It was allegedly claimed that there was embezzlement of the company's money. An audit was conducted to account for the disappearance of this money but the results of the audit are still yet to be known.[5] The company is still recuperating from the losses it has been making since 1999.
Trivia
National Oil Infrastructure Company of Zimbabwe (Pvt) Ltd. engages in the transportation of petroleum products using the pipeline from Beira in Mozambique to Msasa depot in Harare. The company handles various products, including diesel, petrol, jet A1, ethanol, and illuminating paraffin. Its clients include locally incorporated registered oil companies with ZERA and international fuel traders[6]
References
- ↑ 1.0 1.1 1.2 NOCZIM - National Oil Company of Zimbabwe, Petrol Plaza, published:29 Sep 2010,retrieved:29 July 2014"
- ↑ 2.0 2.1 National Oil Company of Zimbabwe enters partnership with Tamoil, Alexander's Gas and Oil Connections, published:28 Nov 2002,retrieved:29 July 2014"
- ↑ 3.0 3.1 3.2 Krispen Mashange, Occasional Paper 16: An Assessment of Liquid Fuel Policies in Zimbabwe, AFREPREN, published:2007,retrieved:29 July 2014"
- ↑ 4.0 4.1 Zimbabwe reforms state-owned oil company, United Press International Inc, published:14 Jan 2011,retrieved:29 July 2014"
- ↑ 5.0 5.1 Gibbs Dube, Suspecting Fraud, Zimbabwe Government Commissions Audit of National Oil Co., Voice of America, published:5 Oct 2010,retrieved:29 July 2014"
- ↑ "Company Overview of National Oil Infrastructure of Zimbabwe Pvt Ltd". News24. Retrieved October 26, 2017.
