Opposition demands answers on Vitol oil deal
The Independent Patriots for Change has demanded that the energy ministry explain its decision to award international oil trader Vitol a three-month exclusive contract to supply Namibia with fuel. Minister of industries, mines and energy Modestus Amutse announced the supply arrangement with Vitol on Friday, saying the agreement would save the government millions. The lack […] The post Opposition demands answers on Vitol oil deal appeared first on The Namibian.
Black News 
The Independent Patriots for Change has demanded that the energy ministry explain its decision to award international oil trader Vitol a three-month exclusive contract to supply Namibia with fuel.
Minister of industries, mines and energy Modestus Amutse announced the supply arrangement with Vitol on Friday, saying the agreement would save the government millions.
The lack of a transparent tender process has, however, caused public outcry.
“The government must explain why a strategic three-month national fuel supply was awarded without competitive tenders, and what process will govern any extension beyond 30 September,” shadow minister for international relations and trade Rodney Cloete said yesterday.
The contract with Vitol is set to expire in September, after which the ministry is expected to introduce new arrangements for the bulk supply of fuel to the country.
Cloete demanded that Amutse explain the full terms and conditions of the Vitol supply agreement, including the pricing methodology.
“Vitol is not an unknown entity: In December 2020, the company admitted to bribing officials across three countries. This is the counterparty to whom we have entrusted sole control of our fuel supply, in a single confidential contract, with no competitive process placed before the public,” Cloete said.
He also raised concerns about the minister’s dual role in appointing fuel suppliers and overseeing competition regulations.
Nasan Energies, the company recently allowed to acquire 52 service stations, is not permitted to buy fuel from Vitol for a period of five years – a condition imposed by the Namibian Competition Commission.
“The same minister who designated Vitol as sole supplier is, at this moment, the official deciding an application by Nasan Energies to overturn a five-year prohibition imposed by our own competition commission on Nasan sourcing fuel from that very same Vitol,” Cloete said.
He described the arrangement as “a question of basic procedural fairness”.
The post Opposition demands answers on Vitol oil deal appeared first on The Namibian.
