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Amid chaos, Mpofu backs off on fuel
The Standard (Zimbabwe)
July 22, 2007

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FACED with the prospect of a devastating fuel crisis that could cripple the whole country, the government has backed off from a controversial plan to ban fuel coupons, The Standard confirmed yesterday.

The government had given coupon holders two weeks in which to redeem them, creating a wave of panic among oil companies, fuel dealers and garages who rushed to redeem their coupons.

There were chaotic scenes on the streets, as thousands of commuters sought transport to work. Many workers walked long distances after failing to secure transport on Thursday and Friday.

Sources said the crisis at most garages prompted the government to reconsider its decision on the coupons, now rated by industry and commerce as the most convenient way of accessing fuel for 77% of motorists.

Quizzed by business people at the Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting in Bulawayo, Industry and International Trade minister, Obert Mpofu alleged his statement had been misinterpreted.

The government was not scrapping the system altogether. He said, instead, the National Oil Company of Zimbabwe (NOCZIM) would be solely responsible for the retailing of fuel and would continue to service those who failed to redeem coupons within two weeks.

"We are streamlining the usage of coupons through NOCZIM," he said. "All the fuel should be accessed through NOCZIM because we want to make it easier and user-friendly for everyone who has genuinely brought fuel into the country."

Mpofu said anyone with problems redeeming the coupons should contact his ministry, NOCZIM or the Ministry of Energy and Power Development.

He said the government wanted to monitor the importation of fuel, as the deregulation of the sector had resulted in the emergence of a number of unscrupulous dealers.

Business leaders said yesterday they believed the government was reconsidering its position on the matter after holding meetings with the taskforce.

Callisto Jokonya, president of the Confederation of Zimbabwe Industries, said there was no need for the private sector to panic.

"We know the repercussions and have made representations to the taskforce and we appraised them of both the pros and cons of the problem.

"We can comfortably say the issue is under consideration and business must not resort to keeping fuel in their houses as this might result in a national disaster".

Charles Chiponda, vice-president of the Matabeleland chapter of the Zimbabwe National Chamber of Commerce said: "We had a meeting with Minister Mpofu yesterday and he promised to look into the issue.

"He said he was aware that some large companies have many coupons and he assured us they would be given time to relinquish them provided they provide proof that they are genuine and need their case to be genuinely looked into.

"He said the two weeks is just a guideline."

It emerged later the government had not only backed off on the coupons ban, but had also reversed its planned ban on the importation of basic commodities.

This followed an uproar by people who now rely on cross-border trade, for their livelihood.

According to statutory instruments 137 and 138 of 2007, the importation of beef, butter, cooking oil, milk, cheese, sugar, tea, wheat flour, ice cream, fertilizer, cotton lint and hides and skins without a permit would have become illegal on I August.

Individuals and companies wanting to import them would have to be first cleared by Mpofu's ministry.

But Mpofu said he had "recalled" the statutory instrument because it had caused "a lot of confusion'".

"I have recalled it," he said, "so that I can study it and see how it affects our people. We will consult before it is implemented. It is actually an old instrument, which was discussed a long time ago and was only brought back this month.

But Mpofu said the government would continue its price blitz. He singled out Matabeleland businesspeople, threatening they would bear the brunt of the blitz because the region was the "hotbed" of the regime change agenda.

According to Mpofu, Bulawayo leads the list of businesspeople picked up during the blitz - 115 (awaiting verification), followed by Matabeleland North, 288, and Harare, 201.

"It is very painful to state this fact," Mpofu said. "We had a lot of visits to Bulawayo by people like (former United States ambassador to Zimbabwe) Christopher Dell who were spending a lot of time here.

"Their agenda was to remove the government through other means which were not legal."

A number of businesspeople challenged Mpofu, saying most of them had been arrested for petty offences such as keeping expired soft drinks without price tags.

They said in Harare goods worth billions of dollars were recovered from residences and at factories, yet there were fewer arrests.

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