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Failure to redeem over US$800 million to players in the petroleum sector by government has reportedly led to the shutting down of some Oil Marketing Companies (OMCs).
These allegations are coming from the OMC’s president, Kafula Mubanga, who claimed that some of its members were shutting down their operations as they did not have resources to continue operating.
Claims of government owing OMCs were last week confirmed by Finance and National Planning Minister, Situmbeko Musokotwane, who said ways of dismantling the debt were currently being explored.
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Reacting to this statement in an interview with journalists in Lusaka on Saturday, Mubanga said: “At least the minister did allude to the fact that they are trying to address the domestic debt that have affected oil marketing companies. Some of them are out of business because they are being owed so much.
“So, we hope that the process will take place as soon as possible. Others, their property has been taken, this needs to be addressed because the OMCs are in a serious situation.”
Mubanga complained that government had taken too long to address the matter, hence the need to act for the betterment of the sector.
“The debt owed by government is huge and if it was cleared the OMCs that are no longer in the business would have sustained their operations.
“Government should consider clearing the debt so that the OMCs facing financial challenges can revive their operations,” Mubanga pleaded.
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