fuel_tanks.jpgThe deal entered into between a local energy firm, Masawara FMI and government has come under scrutiny for failing to adhere to the country’s indigenisation and economic empowerment programme.

FMI energy entered into an agreement with government where the firm agreed to give 10% shares to workers under the employee share ownership trust, 30 petrol service stations would be sold to existing dealers while the rest will be leased for 25 years.

Dealers and workers say the conditions have not been met with the firm only achieving 26% of the required 51% shareholding structure.

Dealers council representative, Mr. Conias Mwenje said some of the dealers have been given 30 days to vacate the premises which is against the indigenisation implementation plan agreed with government.

Workers representative, Mr. Todd Badza said the failure by the firm to comply with the indigenisation programme is working against them as they are being retrenched instead of getting the 10% shareholding.

Affirmative Action Group Chief Executive Officer, Dr Davison Gomo said government should reverse the deal as the failure by the firm to comply will set a wrong precedence.

Masawara FMI took over operations from BP Shell last year in a move where workers and dealers were supposed to benefit from the deal for over 20 years.