THE recently appointed Petrotrade board of directors is up in arms with the state entity’s management amid reports the board halted some controversial and costly contracts that have been awarded to some suppliers without due diligence, Zim Morning Post has heard.
Sources said sparks flew last month as the management tried to arm-twist the board so that the controversial deals could be endorsed.
Sources close to the development said the Petrotrade management had approved the purchase of vehicles from Croco motors as well as the construction of two service stations at exorbitant and unrealistic prices.
“Petrotrade had already awarded Croco Motors a contract to supply vehicles without assessing the availability of funds for a struggling company like Petrotrade,” an insider told Zim Morning Post.
“Petrotrade has been losing its market share and cannot justify the need to purchase three double cabs and one fortuner for its managers.
“To make matters worse these managers are in acting capacities and it means soon the board will appoint substantive personnel. This means those who will be getting these cars will leave with them yet the company is making losses.”
The source said Petrotrade, at its peak, operated 93 service stations and the company has since closed most of the stations and currently is operating only 27 service stations.
“Such a company cannot afford to buy new vehicles when it is not performing well,” said the source.
“This speaks a lot on the nature of contracts that have been done by the management in the past six years without a board,” the source said.
Insiders also said the board disapproved the proposed construction of two service stations valued at US$4 million.
“There were plans to construct new service stations valued at US$4 million. This, again, raised eyebrows as the board demanded to know the kind of service stations that were to be built at such a cost.
“In one of the meetings the board had estimations that a single service station, with a food court, would cost between US$250 000 to US$400 000 and not US$2 million.”
“What has surprised many people is that the two controversial deals were signed days before government appointed a new board,” opined the source.
In June government appointed a new board for Petrotrade after a five-year period of operating without the governing board.
The board was appointed in line with the Public Entities Corporate Governance Act Chapter 10:31.
Speaking during the inauguration, Energy and Power Development Minister Zhemu Soda challenged the new board to hit the ground running as the appointment was long overdue.
He said the board had a critical task of rectifying a number of matters which were pending due to its absence in order to achieve the Ministry’s vision of universal access to sustainable and modern energy in the country by 2030.
The board is chaired by Tinomudaishe Chinyoka who is being deputised by Zanele Dube and other members include Gladys Mumhure, Simbabrashe Eric Mhuriro, Ferida Matambo, Lilian Timveous, Getrude Marabada, Godfrey Ncube and Dakarai Mukuku.
Efforts to get a comment from Petrotrade acting chief executive officer Godfrey Ncube could not materialize as questions sent to him were not responded to.
