OIL SMUGGLING  FIRM BANNED

Wed, 21 Jun 2017 09:02:16 +0000

By BENNIE MUNDANDO

THE Oil Marketing Company (OMC) caught illegally importing fuel into the country, Lake Petroleum, has been banned from distributing, importing, and exporting petroleum products pending further enforcement action over its illegal importation of fuel which led to the impounding of its tankers, the Energy Regulation Board (ERB) has said.

And ZRA has confirmed that it is investigating all fuel imports of Lake Petroleum for the last five years in the wake of its illegal activities which bordered on fraud, forgery, and economic sabotage.

In March this year, a combined team of officers from ZRA and ERB impounded 12 tankers belonging Lake Petroleum for abrogating ERB’s directive to suspend importation of fuel by OMCs in January.

Yesterday, ERB director for consumer and public affairs Agness Phiri told the Daily Nation that the company had been directed to stop its operations until the matter was exhaustively dealt with and concluded.

Ms. Phiri said despite a public portrayal from some stakeholders that the case was not receiving the adequate attention it deserved, ERB was on top of things to ensure that it was given the attention it deserved.

“We wish to advise that the matter regarding Lake Petroleum is receiving active consideration. Further, Lake Petroleum has been directed to stop distributing, importing and exporting petroleum products pending further enforcement. Members of the public and interested parties will be advised of the final outcome upon completion of the necessary regulatory interventions,” Ms. Phiri said.

And ZRA has confirmed charging Lake Petroleum a total of K 4.6 million in both assessed taxes and duties as well as a 100 percent penalty in addition to seizing the 12 tankers which it said were in its custody awaiting auctioning.

Meanwhile, it has been disclosed that an officer from ZRA who worked in collusion with Lake Petroleum to manipulate records to help the company evade and sometimes under-value its tax obligation has since been fired.