Dar es Salaam, Tanzania — Some Oil Marketing Companies (OMC) have raised concern that their representatives in the PIC Board of Directors were planning to disrupt and distort the Bulk procurement system.
This they claim is in order to go back to the old fuel importation system.
Inside information that East African Business Week was able to obtain indicate that the multinationals want the old importation system because all OMC's buy products at different prices.
Thus, the companies are able to practice and enjoy "Transfer Pricing" and in this way contribute greatly to the capital flight of the hard earned forex.
Under the current Bulk Procurement System (BPS), all products are imported together in bulk and the country enjoys more competitive pricing through economies of scale.
"The pricing under BPS is the same for everybody regardless of the quantity one imports" revealed an insider source.
It is difficult for these companies to practice any transfer pricing hence they resolve to try and disrupt the entire process and system.
Confirmed reports from the government indicate that some of the OMC's which are playing such dirty games had been working hard behind the scenes to oust the current General Manager of PIC Michael Mjinja.
The chairman of the disbanded Parliament's Public Organization Account's Committee (POAC), who is also an MP for Kigoma North constituency (Chadema), Zitto Kabwe, told this paper that he was aware of the saga.
"We have heard that some oil companies are planning to disrupt the current BPS system. I am not sure if they will succeed or not," he said.
The Permanent Secretary, Ministry of Energy and Minerals, Eliakim Maswi said the government was aware of the matter and the person being referred to.
"It is not possible to hide anything from the Government. We know the person being referred to. The person works in the same PIC management, not educated, very little experience.
"The person had previously worked with Addax and so forth and has been challenging the GM to try and take over that post. And we know that that person has been backed by some of the people on the PIC Board," he noted concluding that---whatever the case maybe, "We shall win," said Maswi.