cde chapfika nieeb chairman.jpgThe National Indigenisation and Economic Empowerment Board has set up a committee to investigate the compliance of Masawara FMI under the indigenisation programme with allegations that there could have been a flouting of regulations.

In an interview in the capital, NIEEB Chairman, David Chapfika said an investigating team has been set to look closely at the Masawara deal, adding that there are a number of grey areas.

Under the indigenisation and economic empowerment programme, it was agreed that the firm will cede 10% of its shares to workers while 30 petrol service stations would be sold to existing dealers with some being leased for 25 years.

In a statement, FMI Energy, a subsidiary of Masawara Group said in approving the transaction, the authorities did not stipulate that dealers be granted 25 year leases, adding that the firm intends to give dealers leases with a longer tenure than the current 12 months.

Masawara Group through FMI Energy took over operations from BP-SHELL last year.