Shortlisted fuel supplier is broke

Shortlisted fuel supplier is broke

RAVASIA PETROLEUM, FIRM SHORTLISTED TO SUPPLY US$105.7M FUEL IS BANKRUPT

The ministry of Energy has listed 10 companies as best evaluated bidders to supply petrol and diesel. Out of these, six will be given the contracts at the end of the vetting process.

Number one on the list of the 10 listed companies is an entity called Ravasia Petroleum limited.

If Ravasia is given the contract (It is likely to because its being backed by the minister of energy), it will be contracted to supply deiseal and petrol at the total cost of US$105.7 Million.

But here is the problem: Ravasia Petroleum limited is not just broke but bankrupt. In a normal country, Ravasia Petroleum limited wouldn’t even have had the guts to bid for this contract.

We are surprised that the ministry of Energy can even put as number one on the list of evaluated bidders a company that is failing to pay workers and pay its other running contracts because it has no money. How is this broke company going to source and transport 88, 500 metric tonnes of diesel and 44, 500 metric tonnes of petrol if it has no capacity to pay its existing debts and contracts?

Here is one example of how broke and bankrupt Ravasia Petroleum limited is Right now, Ravasia Petroleum limited owes and has failed to pay $1.1 million debt to Kutasha Industries ltd. Kutasha Industries supplied Ravasia Petroleum limited some petroleum products. But Ravasia Petroleum limited has failed to pay even a ngwee.

In June 2021, Kutasha Industries sued Ravasia Petroleum limited in the Lusaka High Court to recover its money.

Ravasia Petroleum limited admitted owing but said it had no capacity to pay back the whole amount. Ravasia Petroleum limited pleaded to the judge that it can only manage to pay back $20, 000 per month. This request by Ravasia Petroleum limited shocked the High Court Judge who said that paying $20, 000 per month means that it will take more than three years to finish paying and this will disadvantage the owner of the money.

The High Court instead ordered Ravasia Petroleum limited to pay $40, 000 per month starting this month, January 2022. This was on 30 June 2021.

See the full judgment attached.

Now this is the company that the ministry of Energy wants to give the contract to source and supply that huge volume of fuel to the government? Is this not risky? This Ravasia Petroleum limited is broke. According to this attached judgement, if Ravasia Petroleum limited defaults paying Kutasha Industries even for just one month, Ravasia Petroleum will be required to pay the entire sum immediately. In case the minister of energy does not know, when such happens, Kutasha Industries can appoint a liquidator to liquidate Ravasia Petroleum so that it can sell the assets and recover its money. What would be the fate of US$105.7 fuel contract with the government? Is someone in government trying to use government money to bail out this broke company? What kind of people sit in the tender committee for them to ignore such information?

Which bank can give this broke firm a letter of credit ? It’s actually supposed to be number one of the Credit Reference Bureau not on the list of oil suppliers.

Let us all help Bally run a clean government.

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