State to control fuel industry further freedoms eroded

This follows the signing into law of the controversial Indigenisation Act last month, another piece of legislation rubber-stamped by the previous Parliament and left to gather dust for three years before becoming law.

Political observers speculate that the dominant party in the so-called power-sharing administration might have other dubious legislation on the back-burner waiting for Mugabes stamp of approval, as they realise that they cannot force any partisan legislation through the current MDC-dominated parliament.

Both the Petroleum and the Indigenisation Act are designed to aid and abet the well-oiled Zanu (PF) patronage system that has kept the party and Mugabe in power for the past 15 years and more. Characteristics of both acts are the enforced control of industries by the state, via its acolytes in the form of indigenous businessmen.

Analysts say both acts provide opportunities for unprecedented corruption and patronage.

It is also noteworthy that Saviour Kasukuwere, minister in charge of indigenisation, is a major player in the fuel industry through his company ComOil.

Bit by bit, Zanu (PF) continues inexorably along its path of eroding the freedoms of Zimbabweans, said a political observer. In line with the Marxist-Leninist ideology that has been the partys cornerstone since 1980, they seek constantly to bring every aspect of life under centralised control.

The Petroleum Act passed through parliament when the country was suffering enormously from erratic fuel supplies and price fluctuations. It is not clear why it was not signed into law at the time.

Former minister of Energy and Power Development, Retired Lieutenant General Mike Nyambuya, drafted the bill and steered it through the House in 2007.

“His Excellency, the President, in terms of section 1 (2) of the Petroleum Act (Chapter 13:22) hereby fixes April 26 2010, as the date on which the said Act shall come into operation,” an extraordinary gazette said this week.

The law will put in place a legal framework for the licensing of players in the fuel sector and will establish a fuel stabilisation fund.

Just a few months ago, South Africa’s Engen Petroleum and Kenyan oil group KenolKobil bid for BP and Shell assets in Zimbabwe. The deal was scuttled after it met with opposition from various groups who alleged the transaction was in violation of the countrys Indigenisation and Economic Empowerment Act.

As is Zanu (PF)s trademark, the Act is full of fine-sounding rhetoric such as the fuel stabilisation fund will rationalise fuel price increases in line with sudden movements in the exchange rate. However, analysts believe it is nothing more than a cover for further corrupt practises. The regulations also promise to ensure that the sector adheres to the best safety practices as well as fair play, but this is unlikely to be the case.