NASAN Energies has allegedly failed to uphold verbal promises it made to fuel retailers to extend a cash incentive for ordering fuel in advance.
The Fuel and Franchise Association of Namibia (Fafa) sent a letter to Nasan Energies on Thursday, raising concerns that Nasan has both made verbal promises not backed up in writing and failed to deliver fuel on time.”
[This letter] records Nasan’s failure to honour those undertakings [verbal promises] or to deliver paid-for fuel within the timeframe expressly committed to by Nasan.
Fafa places Nasan formally on notice,” Fafa chairperson Michael Ludeke says in the letter.
Last week after retailers pushed back against Nasan’s demand to pay for fuel upfront and before deliveries are made, Nasan sent a letter to retailers offering them a “bring the cash incentive”.
Under this arrangement, retailers who order a full truck of fuel and pay at least 24 hours in advance will receive a 50 cent rebate for each litre of fuel.
Nasan organised a meeting with its retailers on Tuesday, where the company allegedly agreed to extend the incentive past the month of June until the end of August.
It was also agreed “that those divested retailers who do not make use of the ‘bring the cash incentive’ would be afforded the same payment terms as previously applied to those retailers while they were supplied by Vivo Energy Namibia Limited, being credit terms of seven days from date of invoice or such other terms as Vivo Energy applied to the relevant site,” Ludeke says.
This means that the upfront payment requirement would be waived.
But Ludeke says Nasan has not put this agreement in writing nor communicated it to retailers who were not present in the meeting.
The letter also states that although several retailers had “acted in good faith” and paid in advance for the fuel, they had still not received it within the agreed upon time.”
The practical consequence is that, having committed substantial working capital upfront to Nasan in good faith and on the express undertakings given by Nasan, the affected retailers are left without fuel, without the promised written confirmation of the agreed terms, and without any assurance that the situation will be remedied.
Several divested retail fuel sites are accordingly dry,” Ludeke says.
Fafa’s demands include putting the promises in writing and either providing fuel on time or providing appropriate refunds for failing to deliver on time. Nasan Energies did not respond to requests for comment by time of printing.
