Multiple fuel smuggling scams are being run in Zimbabwe with cheap fuel being smuggled from Mozambique, sometimes mislabelled to avoid customs duty, and sold or re-exported for hard currency while fuel bought in Zimbabwe for local currency is suspected of being smuggled out and sold for hard currency.
Recently, the Zimbabwe Revenue Authority arrested two men
for smuggling into Zimbabwe five tankers of petrol, a total of 221 000 litres,
using forged papers that designated the contents as crude de-gummed soya bean
oil, which is exempted from duty.
This comes hard on the heels of an announcement by the
Zimbabwe Anti-Corruption Commission (Zacc) that fuel was being smuggled into
Zimbabwe from Mozambique and reshipped to South Africa, Zambia and the
Democratic Republic of Congo.
The development also explains, investigators believe, why
some fuel dealers can afford to sell fuel in foreign currency at prices much
lower than those set by the Zimbabwe Energy Regulatory Authority (Zera), which
allows only modest mark-ups on properly-taxed directly-imported fuels.
Complex cartels are reportedly importing fuel from
Mozambique at prices in the region of 50 US cents a litre before taking it to
neighbouring countries using forged export documents. Zacc is now demanding
explanations from some 42 fuel companies of their fuel dealings.
Two suspects were arrested last month, the first on these
sort of charges, for smuggling 221 000 litres of petrol from Mozambique via
Forbes Border Post in Mutare.
They allegedly forged the import papers and misrepresented
to Zimra officials that they were importing soya bean oil, duty-free.
Malvern Mugodoki (38) an agent working for Vernson Freight
Pvt Ltd and Wellington Kusalaweka (34), who operates from Hurudza House in
Mutare, were arrested on fraud charges. Mugodoki and Kusawela were freed on $10
000 bail each. However, the names of company or companies that imported the
fuel were not mentioned in court.
According to the State, Mugodoki, a clearing agent,
received petrol import documents from three truck drivers — Beven Munyaradzi Mavhaza,
George Muzimbawake, and Langton Mabee — for processing.
He was tasked to facilitate the clearing of three trucks:
registration number AEZ 3183 loaded with 45 000 litres of petrol, AEU 9772 with
41 000 litres and AEG 7618 with 45 000 litres.
After receiving the papers, Mugodoki allegedly connived
with Kasalaweka to alter the original import documents where the product was
indicated as petrol so that it reads ‘crude de-gummed soya bean oil’, exempted
from paying import duty, the court was told.
“They went to Kasalaweka’s workplace at Hurudza House in
Mutare where they forged the import invoices to indicate the product was crude
de-gummed soya oil,” reads the court documents.
The pair later subcontracted Southern Business Services
clearing agents, who are authorised to clear tankers, to do the work.
The subcontracted agents handed the forged documents over
to Zimra officials for processing.
“Acting on the misrepresentation, Zimra produced the
manifests for the three trucks,” reads the papers.
Later on Zimra received information that the tankers had
petrol and that its officers had been duped.
Manicaland police CID together with Zimra officers swiftly
reacted and impounded the trucks.
A check on the load proved the product to be petrol. The
two were arrested and charged with fraud.
While seized with the case of three tankers, police also
received information that two other tankers ferrying were awaiting fraudulent
clearance by the same suspects.
The two trucks ferrying about 90 000 litres of fuel
purchased by some two Harare-based companies were also impounded.
Manifests showing the false declarations and the computer
used in the fraud were held as exhibits in respect of the first three tankers’
case.
The original import papers for petrol were recovered from
the house of one of the suspects’ girlfriend while copies of the fake papers
presented to Zimra were recovered at Southern Business Clearing Agents’
premises in Mutare.
Zimra spokesperson Mr Francis Chimanda said the Mutare case
was the first one since reports on fuel smuggling filtered last year.
“Recently, five tankers were seized at Forbes Border Post
for false declaration. The tankers were reported to be transporting crude soya
oil while they were transporting fuel.
“Fake documents were submitted in support of the
declaration. Zimra keeps records of all seized goods and in that record there
is no fuel seizure as the most recent fuel seizures are the beginning on
fuels,” he said.
However, Zimra has made a total of 60 seizures of different
other goods at Forbes Border Post since January this year.
Zacc chairperson Justice Loice Matanda-Moyo is on record
saying her investigations, the police and Zimra were jointly investigating fuel
smuggling.
“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.
“Investigations carried out thus far reveal the existence
of a criminal fuel smuggling syndicate involving entities that are registered
in Zimbabwe and in a neighbouring country.
“This criminal project has been in operation for a period
of two years and its activities have caused financial prejudice to the
Government of Zimbabwe and that of the neighbouring country,” said Justice
Matanda-Moyo.
Early this year over 25 million litres of fuel smuggled
from Zimbabwe were intercepted by police in South Africa.
The original source of the fuel is unknown; it could be
diverted fuel bought in Zimbabwe dollars or re-exported cheap fuel smuggled
from Mozambique.
Zacc has since asked 42 companies registered in Zimbabwe to
furnish investigators with documentation relating to their fuel dealings.
The companies are: Global Oil, Com Oil Petrol, Victoria
Falls Truck, Unique Jay, Nansane (Rosmitrick), Bankable Resources, Silver Air,
Timkase Investments, Dexfueld Pvt Ltd, Chilota Mine, Mann Aggregates, Matriflex
Oils, Bresville Investments, Fastlane Petroleum, Couderay Oil, Outrech Comm,
Plulixey Petroleum, Bantu Africa Mining, Valley Field Holdings, Takunda Fuel
Services, Musa Petroleum, Einstein Energy, Kinsey Mining, Emirates Valley,
Afrifor, Megabest, Nelich Investments, BOL Supplies, Traderose Investments,
Coalvart Enterprises, Kit Kat Enterprises, Skybuild Construction, Elkrus Pvt
Limited, Getmack Fuels, Falika Pvt Ltd, Bustque, Talebrant Investments,
Peritus, Downtown Fuel, Valbazen Enterprises, Quick Gases and Roomi Truckshop.
When customs duties were raised significantly at the end of
2018 to bring Zimbabwean pricing into line with regional norms, there were
suspicions based on the dramatic rise in fuel purchases in Zimbabwe that fuel
was being smuggled out of the country and sold on black markets in the region.
The recent exchange rate fluctuations and the premium paid
on the black market for foreign currency have enhanced fears that the same
problem may be resurfacing. Herald
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