IPC criticises energy minister’s defence of Vitol deal

The Independent Patriots for Change (IPC) says energy minister Modestus Amutse’s reason for awarding Vitol a three-month deal to supply the country with fuel raises more questions than it answers. The IPC statement released on Thursday comes after Amutse answered questions in the National Assembly on Wednesday afternoon regarding the tender. “What the minister revealed under questioning was more damaging than anything the opposition has alleged,” IPC shadow minister for international relations and trade Rodney Cloete says. Amutse said the state oil company, the National Petroleum Corporation of Namibia (Namcor), offered a cheaper price per litre, but required guarantees that the government was unwilling to provide. Cloete questions why the government rejected a discount at the same time that the National Energy Fund is severely depleted. “On the minister’s own consumption figures of 95 million litres per month, the refused discount is worth in the order of N$114 million per year,” Cloete says. Cloete also repeats concerns over the effect of the fuel supply arrangement on competition in the downstream retail sector. Nasan Energies – now Namibia’s third-largest fuel retailer – was allowed to acquire service stations from Vivo Energy on the condition that it does not source fuel from Vitol, a condition Nasan is currently appealing. “The same office chose the supplier, will judge the appeal about access to that supplier and is negotiating with the appellant. This is the textbook structure of apparent bias under Article 18 of the Namibian Constitution,” Cloete says. The party demands in their letter that Amutse table the agreement with Vitol in parliament, discloses the decision-making behind not affording Namcor a guaranteeband provide details on Namcor’s offer. In addition, IPC demands that Amutse recuse himself from making the decision on Nasan’s appeal. The post IPC criticises energy minister’s defence of Vitol deal appeared first on The Namibian .