NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
Chevron faces class action from aggrieved dealers

By News Express on 06/10/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,844


Disgruntled Caltex dealers in South Africa are proceeding with plans to institute a class action suit against US oil giant Chevron Corporation.

The retailers, who on Tuesday held a mass meeting to give an update on planned court action, are accusing the company of turning a blind eye to unethical business practices against dealers, some of whom have been trading under the Caltex brand for decades.

The move comes as the local arm of Chevron is preparing to dispose of its South African shareholding.

The dealers claim that branded marketers appointed as intermediaries between the company and dealers have taken advantage of Chevron’s plan to sell its stake in Chevron SA, with the marketers unilaterally cancelling dealer agreements and selling sites.

Mike French, chairman of the South African Chairman’s Council of Branded Marketer Retailers, said: “With Chevron now selling, they are not too interested and the branded marketers saw an opportunity to seize those sites and not to renew the franchise agreement.”

French said the planned court action was premised on unhappiness that Chevron had allegedly allowed unfair practices to continue despite a clause in their agreements compelling marketers to treat dealers fairly. French said the action would be directed at the branded marketers for not complying with agreements and for removing sites from dealers.

“We’ll be going against Chevron, as well as four of the 10 branded marketer trustees,” French said. A notice of demand was sent to Chevron global CEO John Watson in California three weeks ago, but the company deferred to its local unit.

The South African subsidiary on Tuesday said: “There is no wide-scale cancellation of retailer agreements. The retailer agreements at issue were fixed-term, 15-year agreements that are expiring due to the passage of time, not because of any effort by the branded marketers to cancel them.”

It said it was aware of only one retailer who had raised problems with the branded marketers. But the firm had seemingly washed its hands of the situation. “Only they [the branded marketers] are properly placed to negotiate these commercial contracts with the retailers in their respective clusters.”

French said: “There’s been all sorts of corruption that’s taken place. There’s been retailers who have offered money to Chevron in the past, retailers who offered money to the branded marketers, and Chevron ignored that and, in some instances, ceded sites to the branded marketers and in others sold property to the branded marketers.”

In certain cases, he said, the branded marketers had refused to renew agreements.

He claimed the marketers had also accused the dealers of not complying with black economic empowerment laws. In at least one instance a site was removed from a white person, but it was later discovered that the site had not been sold to a black person but given to a wealthy businessman.

According to Chevron SA, the branded marketer structure accounts for 53% of the total Caltex network. The branded marketer programme was developed a decade ago. There are 10 branded marketers in SA.

•Text courtesy of Business Day (South Africa).

Source News Express

Posted 06/10/2016 05:05:10 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Abia Govt. serves squatters quit notice

2 million Nigerians at risk in Cameroon —...

Hate speech, hate song

Nigeria 5th Eurobond oversubscribed by over 450 per...

Bauchi owes retirees N15b gratuity, says NLC

2013: Abia Governor proposes to spend N134 billion...

Anti-Jonathan prophecy: Bakare disowns journalists

Nigeria loses 4,200 barrels of oil per day...

Yudala promises free browsing, assures of more surprises...

Speaker Dogara celebrates David Mark @70

Breaking News: PTD National Treasurer kidnapped in Kaduna...

Only Supreme Court can remove me as PDP...

 

Latest News BREAKING NEWS: Senate calls for Buhari’s impeachment APC shifts congresses, National Convention Big Brother Naija sponsor, Payporte, in N23m debt mess, begs court to dismiss winding up suit Democracy under threat: Southern, Middle Belt leaders IGP Ibrahim Idris disrespecting me and the Senate — Saraki Shell profits jump as oil prices soar Troops nab militias in Nasarawa, recover arms Abnormal herdsmen behind Benue killings — Presidency Umahi orders arrest of policeman over alleged killing of Okada rider INVESTIGATION: Former DG NEMA, Sidi Ali, maintained 20 bank accounts — Reps Revenue discrepancies: FAAC meeting fails to hold again 2019: Senator Abe joins Rivers guber race

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (340,131 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (335,224 views) Shameless Genevieve Nnaji exposes breasts in public (268,196 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,541 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,337 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,426 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (173,153 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,504 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,321 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,312 views) Lagos plane crash: Journalist releases victims’ names (137,108 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,777 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,077) Business Verdict (40) Columnists (839) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (485) Features (570) Global Business Monitor (267) International (1,929) Interview (149) Live Commentary (28) Love Matters (116) News (34,771) Opinion (917) Pidgin (10) Politics (4,823) Religion (724) Sports (1,487) Stock Watch (28) AMA & Al Jazeera Global Update

 

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement