Mugabe may seize oil giants' assets

The Times ^ | December 16, 2002 | Jan Raath

[MadIvan]

PRESIDENT MUGABE of Zimbabwe has threatened to seize the facilities of leading oil companies operating in the country and use them to distribute fuel.

At the annual congress of his ruling Zanu (PF) party, Mr Mugabe said that the Government could “acquire” service stations and storage facilities, compensate the companies to which they belonged and dispense the fuel. There are five multinational oil firms with a presence in Zimbabwe — BP, Shell, Mobil, Total and Caltex — and their assets there are worth millions of pounds.

Lawyers said that such a move would be illegal. One lawyer, who did not wish to be identified, said: “It would be patently unconstitutional. Besides, most of the international oil companies are covered by bilateral treaties from this kind of nationalisation.”

The President’s remarks came two weeks after the Government said that it was drafting a new policy within its so-called indigenisation programme to allocate fuel supplies to the 24 “independent” companies licensed to retail fuel, nearly all of which are owned by senior Zanu (PF) officials.

Fuel reserves in the country have reached their lowest levels in three years, since leading oil companies cut off supplies to the state-owned National Oil Company of Zimbabwe (Noczim) when the Government failed to pay arrears for imports.

In the past week the queues of drivers have lengthened and more service stations have been putting up “no fuel” signs. Vehicles abandoned at the roadside for lack of fuel have become commonplace.

In Chinhoyi, the venue of the conference, fuel was available only for party officials. A journalist was told at a Mobil service station that he could buy petrol only if he could prove that he was a delegate.

Mr Mugabe said that the oil companies were making huge profits while the Government made losses from importing fuel via Noczim, which sells it on to the multinationals to distribute. However, industry executives said that Noczim’s enormous losses were a result of price controls that forced it to sell fuel at the equivalent of about 3p per litre while buying it for about ten times that price.

Mr Mugabe has ignored Noczim’s pleas for a price increase.

Economists say that total state control over fuel distribution would condemn the industry to the same failure affecting much of the country’s agriculture, transport, mining, telecommunications, railways and power industries.

“Mugabe’s thinking is that taps make water,” a Western diplomat said. “If he goes ahead (with the takeover of multinational service stations), the country will dry up far quicker than it is doing already.”

[MadIvan]

It's clear Mugabe has gone around the bend. One well directed laser-guided bomb will end this nonsense.

Regards, Ivan

Flag of Rhodesia

[MadIvan]

Bump!

[twntaipan]

I think Mr. Mugabe's syphalis has gone to his brain.

[Fish out of Water]

Just well versed in Marxism.

[anniegetyourgun]

Yep.

[litehaus]

Wana take a guess how long B4 South Africa announces likewise?

[Cicero]

Mugabe was a Maoist to start with, when he staged his revolt. For some reason I've never seen explained, he behaved himself years. Then suddenly he started behaving like a Maoist again.

[Tacis]

Mugabe will do anything to prove the blessings of colonialism.

[Mike Darancette]

Mr Mugabe said that the Government could “acquire” service stations and storage facilities, compensate the companies to which they belonged and dispense the fuel.

I see Mugabe wants to now work his magic on the energy industry after doing so well in agriculture.

Who will run the service stations, veterans or his relatives?

[MadIvan]

Well now that they are involving American oil companies, Mobil, perhaps now President Bush might take an interest in squashing Mugabe like the cockroach he is.

Regards, Ivan

[MadIvan]

I should point out that hitherto that Zimbabwe hasn't been threatening American interests directly - by doing this, Mugabe just changed all that.

Regards, Ivan

[toddst]

It's clear Mugabe has gone around the bend. One well directed laser-guided bomb will end this nonsense.

Now that Mugabe is messing with oil companies, not just farmers, the chance of his being targeted goes way up. Hope this situation is taken care of soon - by someone.

[The Electrician]

We seem to be watching Atlas Shrugged played out in real time (or, is it the Fountainhead? Haven't read them in a long time, too long).

[Verginius Rufus]

Telling Mugabe his idea is "unconstitutional" is supposed to stop him? It will have as much impact as Candide telling the South American cannibals that eating people is unchristian.

[Capriole]

Well now that they are involving American oil companies, Mobil, perhaps now President Bush might take an interest in squashing Mugabe like the cockroach he is.

I'm afraid that there is a limit to how many foreign involvements even America can take on. And talk about a p.r. disaster--making war on a black nation led by a black man would be ruinous for Bush politically. I don't think you should hold your breath waiting for this to happen, Ivan.

[muawiyah]

Better that they walk off from those assets as fast as they can before Mugabe has them over for dinner!

[Kay Ludlow]

We seem to be watching Atlas Shrugged played out in real time

I've been thinking that for awhile myself!

[MadIvan]

Better that they walk off from those assets as fast as they can before Mugabe has them over for dinner!

Considering the food shortages and Idi Amin as an example, that might be a literal truth.

Regards, Ivan

[Eternal_Bear]

Has anyone checked his refrigerator recently? You just never know these days. Ah, the joys of multicultural culinary habits!

[redbaiter]

I don't see any compelling US interest. No reason for us US to take on the risk & expense of disposing of this nutjob. But what if the oil companies raised an army themselves? Just a thought.