ERB Suspends Exxon Petroleum Energy’s License Over Fraud Allegations
The Energy Regulation Board (ERB) has suspended the operating license of Exxon Petroleum Energy Limited due to alleged fraudulent practices.
The company, owned by Dr. Kafula Mubanga, President of the Oil Marketing Association of Zambia (OMCAZ), faces numerous lawsuits from various companies for failing to supply fuel.
Recently, Judge Chilombo Maka ordered Dr. Mubanga to pay Luapula Energy Limited K3,506,195.90 for 52 tankers of petroleum products obtained on credit.
Exxon Petroleum Energy Limited failed to clear the outstanding debt and did not defend itself in court. Attempts to recover the debt through bailiffs were unsuccessful as the company’s bank accounts are overdrawn.
Judge Maka held Dr. Mubanga responsible for settling the debt due to his role in running the company.
Additionally, Surya Energy Limited has sued Exxon Petroleum Energy Limited, demanding payment of K500,111.00 for the non-supply of 40,000 liters of fuel from the Tazama pipeline in Tanzania.
In February this year, another default judgment was issued against Exxon Petroleum Energy Limited in favor of the ERB for K620,444.17 in outstanding statutory fees.
