Africa-Press – Eswatini. Galp Eswatini has been alleged to be refusing to remove its property at the Big Tree Complex in Mahhala, Matsapha, following cancellation of the lease agreement to operate at the complex.
The cancellation of the lease agreement prevents Galp Eswatini from trading at the Big Tree Complex premises.
As such, the petroleum wholesaler is wanted out to give way to another wholesaler to take over the filling station.
This is contained in a letter seen by this newspaper, in which Ncamase Investment accuses Galp of resistance in that it is refusing to remove its property from the complex.
Ncamase, the proprietor of the Big Tree Complex where Galp Eswatini operated a filling station until three years ago, has taken up the matter with Eswatini Energy Regulatory Authority (ESERA).
In the letter addressed to the Authority dated March 8, 2024, it is alleged that Galp was refusing to decommission the filling station after the lease agreement was cancelled on February 19.
The filling station operated by Galp was the anchor tenant in the complex and a lot of other businesses were dependent on the traffic to the filling station.
The filling station ceased operations in July 2021.
According to the letter to ESERA seen by this publication, the sudden cessation of operations resulted in a drop in traffic to the complex and a number of businesses have either closed or relocated to other shopping centres in Matsapha.
It is said the complex has become less competitive because of the loss of traffic from the filling station and is currently only half occupied.
Immediately upon acquiring the complex from previous owners, the new shareholder started engaging Galp to resume operating the filling station.
It is further alleged that the previous shareholders had highlighted that the loss of business was due to the closure of the filling station, and this had a negative effect on other tenants.
It also made the complex uncompetitive relative to other competitor complexes, ESERA has been informed.
“Put in another way, the closure of the filling station constitutes a threat not only to the viability of the business of Ncamase as owner of the complex but other businesses which are tenants in the complex,” reads the letter signed by Issufo Calu, the Director of Ncamase.
He said Galp was allegedly engaged by Ncamase to open the filling station on or about September 2023 and Galp made an undertaking to revert by end of October on when it would resume operations.
Calu said the understanding was that this would happen at the beginning of November 2023.
However, despite the engagement and the promises, Calu further alleged, Galp failed to open the filling station and it remained closed.
On January 29, 2024, after four months with no communication from Galp or whatsoever, a notice of breach of the lease agreement to Galp was issued.
In terms of the lease between Galp and Ncamase, Galp was obliged to keep the filling station open to the public at all times and the failure to keep the filling station open was a breach of the lease agreement.
“Galp failed and or refused to rectify the breach by opening the filling station and Ncamase proceeded to cancel the lease agreement between it and Galp,” Calu further alleged in the correspondence.
In the letter cancelling the lease agreement, Galp was advised to remove its property from the premises.
“Galp has indicated that it will not remove the property from the leased premises,” it is alleged.
“This means that Galp is refusing to decommission the filling station.”
Galp Eswatini Managing Director Bruno Lorenco Marques, when contacted about the matter, preferred not to comment as he said this was a private issue between two private companies.
“This is a private matter. I do not feel comfortable to discuss private disputes in a public forum, more so as this issue forms part of a court process,” Marques politely said, adding that he saw no value in discussing such matters which according to him were not of public interest.
The court process Marques is referring to is the protracted case with Big Tree Filling Station, in which the company is accused of refusing to supply fuel, rendering the filling station inactive. While that matter is pending in court, the dispute with Ncamase over a lease agreement has been a new development.
Another company engaged to run filling station
Eswatini Energy Regulatory Authority has learnt from the Big Tree Complex Director Issufo Calu that a new company has been engaged to take over operations of the filling station.
Ncamase Investments, the proprietor of the Big Tree Complex, says they have engaged another petroleum wholesale company to open the filling station.
Calu said the wholesale company was ready to open the filling station as soon as possible.
He said it was in the best interest of Ncamase, as business and other tenants in the complex, that the filling station be opened as soon as possible. Calu also said it was of national interest that the filling station be opened to ensure supply of the fuel in Matsapha industrial area. In the letter directed to ESERA and copied to Eswatini Environment Authority (EEA) Calu said opening the filling station would also restore the jobs that were lost when Galp stopped operations.
He also said it would also restore business confidence in the complex and help create employment when the complex is fully occupied.
“We are requesting the Eswatini Energy Regulatory Authority to approve the decommissioning of the site, which will allow for Ncamase to recommission the site with another wholesaler,” Calu submitted in his letter. The contractors are ready to commence the decommissioning immediately, he said
“We request that you deal with this matter expeditiously to avert the harm suffered by Ncamase,” the letter states.
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