Trafigura, 2 others to‘oil’ Zambia
TRAFIGURA, is one of the six companies that have been awarded multi-billion Kwacha contracts to supply Zambia with undisrupted petroleum products for the next two years.
Apart from the Amsterdam-based Trafigura – which has access to approximately US$33 billion in credit facilities – are Tanzania’s Oilcom and Gunvor SA of South Africa.
Trafigura will supply undisclosed amounts of diesel or gasoline while Gunvor SA is said to have beaten the other companies in “low” crude supply quotes, which must be good news for Zambia as it tries to push down fuel pump prices.
Ministry of Energy and Water Development permanent secretary George Zulu over the weekend told the Sunday Mail that the selection criteria was tight in order to ensure corruption was removed from the process following President Sata’s expression of concern regarding the corruption that marred oil supply deals during his predecessor Rupiah Banda’s time.
Under Mr Banda, now visiting professor at Boston University in the United States, contracts were allegedly either prematurely terminated without reason and new ones awarded without following laid down tender guide lines.
One such case of premature termination involved the contract given to Kuwait’s IPG awarded by late President Mwanawasa’s administration that was scrapped under Mr Banda and subsequently given to some East African companies believed to have links with Mr Banda’s fugitive son Henry, who has also been tied to the revoked Zamtel sale. IPG’s contract has been reinstated.
“All I can tell you is that the final decision was arrived at above board,” Mr Zulu,who declined to confirm the Daily Mail information, said. “You see, in the past my predecessors (permanent secretaries) have been followed and interrogated by police on retirement and I don’t want that to happen to me.So, we are doing everything by the law.”
Up to K2 trillion was either misapplied or corruptly used during the last oil supply deals, according to the Wynter Kabimba-led commission of inquiry that recently handed a comprehensive report to President Sata.