OMCAZ CALLS FOR INDEPENDENT AUDIT OF $800 MILLION FUEL DEBT ACCRUED UNDER PF
The Oil Marketing Companies Association of Zambia-OMCAZ has called for an independent audit into the $800 million debt owed to Oil Marketing Companies to verify its authenticity.
OMCAZ president, Dr. Kafula Mubanga, states that parts of the debt appear questionable and require thorough scrutiny, proposing that the audit should involve the Zambia Revenue Authority-ZRA to verify the quantity of fuel imported, while Indeni and the Ministry of Energy should confirm the actual amount of fuel consumed.
Dr. Mubanga reveals that some of the fuel under scrutiny entered the country as bonded pron arrangement that exempted it from certain taxes, which he says, should not have been the case during the review period between 2019 and 2021.
He has also raised concerns about whether this fuel was ever received by TAZAMA, noting that the debt, originally contracted under the previous Patriotic Front-PF administration, stood at a principal of $250 million and has ballooned to over $800 million due to penalties and interests.
Dr. Mubanga has emphasized that no independent audit has yet been conducted to verify the legitimacy of the debt while acknowledging ongoing negotiations between the government and Oil Marketing Companies, most of which are multinational firms.
PN