demanding explanation as to what measures were taken against Dubai based Sahara Energy Resources DMCC which supplied the country with substandard fuel twice between December last year and May this year.
In an order dated July 28, 2016 signed by Ewura Director General, Felix Ngamlagosi, the regulatory body has also given PBPA seven days to explain why shouldn’t severe punishment be imposed on the agency for ignoring to respond to two Ewura letters over the same company.
“As you are aware, on 25th December 2015, petrol (PMS) cargo that was received through MT Ridgeburn John B (BPS 40) as supplied by Sahara Energy SA failed TSB tests and was not allowed to enter into the Tanzanian market,” the Ewura order reads in part.
Ngamlagosi’s order, which in fact constitutes a court summons, further demands that PBPA explain reasons behind ignoring its letter dated January 21st 2016 which required the Agency to inform the regulator on disciplinary measures taken against Sahara Energy for the December 2015 adulterated fuel consignment which was rejected by Tanzania Bureau of Standards.
The order further required PBPA to appraise Ewura on disciplinary measures taken against Sahara Energy for supplying the country with contaminated Jet A1 last May when its vessel MT UACC Ibn Al Atheer discharged the consignment at Dar es Salaam port.
“After the second incident, Ewura on May 17, 2016 through letter Ref. EWURA/45/30/Vol. II/50 instructed PBPA to appraise it on the cause of the said incident and actions taken by PBPA to ensure that the country does not experience shortage of Jet A1 and kerosene. PBPA was required to quickly submit to Ewura written explanation regarding the matter. However, to date, no explanation has been submitted as required,” the order reads in part.
The regulatory body went on to demand explanation from PBPA as to why despite all such violations of the country’s petroleum importation law, Sahara has not only escaped punishment which includes being blacklisted for 10 years and payment of 20 percent of the value of the consignment supplied as penalty, but has actually been cleared of wrongdoing.
“Nevertheless and on a surprising move, on July 26, 2016 Ewura received a copy of a letter from PBPA that was addressed to Sahara informing them that PBPA has reinstated Sahara to participate in BPS tenders,” Ngamlagosi’s order noted.
Five oil marketing companies which received the contaminated Jet A1 last May have been complaining against Sahara’s failure to compensate them for the loss caused but PBPA acting Executive Director, Michael Mjinja has said Sahara has fully cooperated in the matter.
In a letter addressed to Sahara Energy’s Managing Director, Mjinja stated that, “Kindly be informed that following the report issued by the joint fact finding team, your compliance/adherence to the government directives (to evacuate contaminated Jet A1 and clean all tanks and pipelines which have been contaminated), your commitment to adhere to the Tanzanian laws, rules and regulations and cooperating with the government institutions dealing with bulk procurement system, the Agency has decided to reinstate you to participate in BPS tenders.”
Speaking to The Guardian over the matter last week, Minister for Energy and Minerals, Professor Sospeter Muhongo who had suspended Sahara Energy last May and order that apart from cleaning up the contaminated facilities, the company was also supposed to compensate the five oil companies and resupply a clean consignment.
“This matter should be reported to PCCB to find out if there is anything relating to corruption,” Prof Muhongo said in a text message while revealing that major changes will be undertaken to the current BPS by Ewura to get rid of presence of a cartel.
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