Home » Business » Glow Petroleum in U.S.$13 Million Fuel Scam

A local fuel company is under investigation for allegedly importing fuel worth tens of millions of dollars on the pretext that it was meant for the Zimbabwe Defence Industries (ZDI). Glow Petroleum, which went on to distribute the fuel to its service stations countrywide, is believed to have defrauded Government of more than $13 million by evading duty and other charges since June this year.

Sources close to the investigations on Tuesday said the company’s director, Mr Aaron Chinhara and one of his managers who has not been named, were picked up for questioning in connection with the scam last week.

They are still assisting police with investigations.

When contacted for comment, Mr Chinhara confirmed that he was questioned by police last week.

“Can you do it (the story) without my input. We don’t have anything to say. Yes I went to the police and they have not opened a docket yet for us to appear in court,” he said before hanging up his mobile phone.

Although the details were still sketchy, The Herald understands that since June this year, the company imported about 37 million litres of fuel.

The officials at the company are believed to have misrepresented that the fuel was for the ZDI.

They then distributed it to their service stations countrywide for resell. Police last week received a tip off and raided some of the company’s premises in and around the city. The syndicate allegedly also involves prominent politicians and businesspeople, according to close police sources.

Last Wednesday, one of the drivers at the company was forced to abandon his tanker at a service station in Southerton area after he was cornered by detectives from the CID Homicide section.

The driver wanted to offload the fuel when detectives received a tip off about the consignment.

Several trucks have since been impounded by police after being abandoned by drivers as investigations on the case continue.

Last week, Glow Petroleum was among service stations involved in a fuel price war in Gwanda as they fought to outdo each other.

Gwanda town has four fuel stations that charge more or less the same price.

Petrol costs between $1.50 and $1,54 per litre, while diesel ranges between $1,37 and $1,42.

It is reported that trouble started when Glow Petroleum service station sold petrol for $1,46 per litre and diesel at $1,36 per litre.

Realising the threat, another indigenous filling station operating under the ZUVA Petroleum brand, reduced its prices to just one cent under Glow Petroleum’s price.

Not to be out done, Glow Petroleum reduced its prices by a further five cents on both blend and diesel to $1,41 and $1,31 respectively.

ZUVA Petroleum brought their prices of petrol and diesel down again to one cent below Glow Petroleum’s price at $1,40 and $1,30 per litre respectively.

Glow Petroleum then reduced its prices further to $1,30 per litre for petrol and $1,18 per litre for diesel, raising questions about how they sourced their fuel.

Source : The Herald

Archives