This is the second time the company wins such a tender in competition with other six oil marketing companies operating in the country.

 

Other companies which submitted tenders included Augusta Energy SA, Enoc Africa Limited, Glencore energy UK Ltd, Gunvor SA, Vitol SA Switzerland and Sahara Energy Resources DMCC.

 

PIC General Manager Michael Mjinja told a press conference yesterday in Dar es Salaam that out of the six competing companies, Gapco had the minimum weighted average premium of 46.506 while the maximum was 56.034.

 

He said that, the initial tender was opened end of January 2013 and was definitely cancelled due to irregularities found in the bidding documents. However, he added that the process for the 9thn BPS was repeated on Monday this week after ascertaining petroleum stock levels in the country.

 

However, he has dismissed claims that there were some ‘forgery’ made on the documents when required to clarify reasons for the cancelation but noted that, oil marketing companies were given enough opportunity to rework their requirements following changes of delivery periods. 

 

Describing the various challenges facing the PIC, he said that his company was worried over how the premiums keep on declining and noted that they only prefer to take those ones whose weight average has the lowest price level. 

 

Other challenges he noted is based on the storage capacity which he said is not enough and that his organization is currently working on the issue to see that such a problem comes to an end. Statistics made available shows that, it’s estimated that Tanzania uses a total of 2 million litres of petrol, 3.9 litres of diesel, 550,000 litres of oil jet and 190,000 litres of kerosene per day. 

 

Meanwhile, the PIC management through its tendering committee has suspended the Geneva-based Addax Energy SA from participating in its incoming four tender bids on bulk oil purchases organized by the firm under Bulk Procurement System (BPS) with effect from the month of February this year, it has been learnt.

 

PIC General Manager Michael Mjinja told The Guardian in an exclusive interview yesterday in Dar es Salaam shortly after a press conference that the decision for suspension was made after it was “found guilty” of violating regulations and rules set by PIC that govern the BPS importation system.

 

He said the decision by the PIC management was to stick to the rules and regulations governing petroleum importation procedures and that it would not hesitate to take disciplinary legal actions against the offenders who attempt to bend the contractual procedures for their own benefits.

 

He said the oil importing company had committed the offence in its two previous oil marketing tender bids which it won last year for the 5th and 6th time respectively, and in its last tender the Tanzania Bureau of Standards (TBS) rejected the oil cargo consignment it had ordered from being offloaded at the Dar es Salaam port.

 

Narrating the incident, Mjinja noted that when TBS officials who work in collaboration with other quality certifying companies at the Dar port such as the Independence Survey Ltd discovered that the consignment did not conform to the required quality standards sent a letter to PIC for confirmation. 

 

In view of this, together with this suspension, he also noted that his office had also taken legal measures over the issue as per contract and ordered the company to return the fresh bulk alongside with the extra payment of $0.5 to be charged as fine in addition to every metric tons ordered. 

 

This is the second time PIC is suspending the oil importing company. In early December, 2012 PIC issued a suspension order that prevented the company from participating in its oil tender market for what it had termed as violation of regulations under which the multinational company is said to have delayed delivery during the fourth tender, which might result into serious shortage of Petroleum products in the country.