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BURS, BERA close taps on fuel leaks

Caught in the act: BURS and BERA busted yet another illicit fuel smuggling operation in Kazungula on Wednesday PIC: BERA FACEBOOK
 
Caught in the act: BURS and BERA busted yet another illicit fuel smuggling operation in Kazungula on Wednesday PIC: BERA FACEBOOK

The two parastatals signed a Memorandum of Understanding on Monday, with officials vowing to step up their efforts in curbing the illicit trade in fuel.

Investigations by authorities have shown that illicit and undeclared fuel is being regularly smuggled or otherwise secreted into the country, bypassing quality checks and taxes. The growing trend puts motorists at risk, cheats the budget out of revenues and unfairly squeezes the legitimate and law-abiding fuel companies.

“We talk about fuel security but that also comes with a way of trying to control that leakage,” said BERA CEO, Never Tshabang. “The amount of revenue that we lose through illicit trade sometimes is estimated at P4 billion which is equal to the budget of a government department.”

For his part, BURS acting Commissioner General, Phodiso Valashia, said a new chapter had opened for the trading of petroleum products in the country, through the partnership between the tax agency and BERA.

“There'll be no hiding place for those who would want to trade illicitly in Botswana on petroleum products but we want those who are intent on legitimate trade to be assured of our support,” he said.

Under the MoU, the two organisations will leverage their respective experience and strengths, as well as legislative backing, to develop an enhanced system to prevent the illicit import and export of fuel.

Authorities say the illicit trade in fuel in the country takes various forms such as under declaration at the borders as well as the diversion of fuel. Rogue importers bring in fuel claiming it is in transit, but then offer it for sale at rock-bottom prices elsewhere in the country..

Under the partnership, BURS is banking on BERA to check on quantities and qualities, while BERA wants BURS to police the borders and ensure compliance with the country’s laws.