Zambia has asked Russia’s LUKOIL to procure 90,000 tonnes of emergency crude oil supplies worth $65 million to avert imminent fuel shortages, Finance Minister Ng’andu Magande said on Monday.
Magande said the government had contracted the company’s trading arm, Swiss-based LUKOIL International Trading and Supply Company (Litasco), to purchase the oil following a dispute with France’s Total over fuel pricing.
Total stopped importing crude oil for Zambia owing to the dispute, Magande said, adding that the abrupt halt had been part of the cause of severe fuel shortages experienced in the southern African country early this month.
He said Total, which owns half of the Indeni Oil Refinery, with the balance held by government, has been purchasing oil for Zambia since 2002.
Magande said the government had floated an international tender for a permanent supplier of crude oil to Zambia and that bids would close on Nov. 16 while negotiations with a successful bidder would end by Jan. 1 next year.
“What happened was unexpected… in May Total wanted to increase the price of fuel by 25 percent but we (the government) refused. Then they just told us that they (would) no longer buy crude oil for us and we were in a crisis,” he told a news conference.
“As government, we have gone to the Bank of Zambia (BoZ) to buy foreign currency for the import of 90,000 tonnes of oil and it must be here for processing by 10 November 2007,” Magande said, adding the government would pay Litasco directly.
Magande said Litasco would import the fuel on ad hoc status until Zambia found a permanent supplier.
He said the government was treating oil procurement as an ‘urgent’ matter, to avoid harming economic growth.
“If it means stopping (the building of) some clinics somewhere we will do that to make sure that we have oil,” Magande said.
Total officials were not immediately available for comment.
Zambia’s daily fuel consumption includes 1.5 million litres of diesel, which is used mainly in the copper and cobalt mines, and 500,000 tonnes of petrol.
Magande said Zambia’s fuel shortages this month were compounded by the refusal by an American bank to finance its recent purchase of 60,000 tonnes of crude oil because the source of the oil was Iran, which is facing a U.S. financing embargo.
Magande said Zambian President Levy Mwanawasa had intervened to source funds from a local commercial bank, drawing criticism from the opposition and analysts.
“Foreign-owned commercial banks don’t make decisions here and the only way of dealing with the matter was to speak to our local banks. There is no way we could have left the shortages to continue,” Magande said in response to criticism reported by local newspapers.
This issue will be the worst oil scandal this govt will have on thier hands. We demand that an explaination be given with all honesty to let the Zambians know about such a predicament.Why have personal interests when dealing with public or national issues? Indeni is the one we know to have the mandate to ensure that there is oil in the country. Why play double statndards in matters like this one? Zambia is landlocked and such this issue should be at the top priority so that the economy runs.
it makes me wonder how these guys can run a country if they cannot even order fuel stocks without messing things up!!!!
The problem here is that the MMD administration gov’t sold a strategic company like Indeni to Total which is foreign owned. What total is doing is what the call ‘hoarding’ in business. First the create a problem then also become part of the solution in essence the losers will always be the Zambian people. What we are seeing is the negative effects of privatization in ‘real time’ i.e. as it is happening. This is what happens when you let foreign corporations run the local economy.
Opinion #3
You are very right. These some of the fruits of modern colonization (privatisation / imperialism). We are trapped in a quagmire.
Total and other French oil companies have had a very corrupt history in Africa. Let this be a lesson to this government, which seems only too willing to give away the nation’s strategic assets.
I pose the question again: Where is the discovered oil and how urgent do we need to start or to put up drilling measures? Oil can take your economy several steps backwards. Thank God for the foresight of KK who established the Pipeline and Indeni. Our landlocked position could be catastrophic if we choose not to plan.
Levy was just playing politics, there is no oilin North-Western Province. Nearly all the world’s oil reserves are in sandy areas and if there was any place in Zambia with oil deposits, it would be kwahae and they are not interested in prospecting there, ha!
THE EAGLE IS TRAPPED
Some lies and half-truths are so obvious that they do not need a rocket scientist to be detected. Much as Patriotic Front vice-president Dr Guy Scott might want to defend Michael Sata over his request for US$50,000 from Taiwan for his continued campaign of discrediting China, it is clear that his boss has conducted himself in a very dishonest manner, not only to his party but also to his financiers.In fact, we can go further to state that Sata has not only lied to his fina
…Sata has not only lied to his financiers over his trip to the United States of America, but he has also acted dishonestly to the organisers of the event he is attending by portraying a picture that they have not fully taken care of all his needs while he is their guest at Harvard University.
For those who think that we have unfairly and wrongly concluded that Sata has been dishonest over his trip to the United States, we can restate the facts the way we presented them yesterday.In his letter to the Taiwanese Ambassador to Malawi, requesting for money, Sata claimed that the purpose of the money was for among other things, to help him purchase return air tickets for himself and Dr Chileshe Mulenga who is accompanying him since the organisers had only arranged a one-way ticket.
…Now, we have in our possession Sata’s itinerary which shows that both tickets are return and not one-way as he claimed. And knowing fully well the stringent immigration requirements in countries like the United States, we fail to fully appreciate why the organisers of Sata’s event can choose to inconvenience their guest by providing him only with a one-way ticket especially that it was their initiative.
…In our comment yesterday, we stated that it was incredible that a politician like Sata, who longs to lead our country, could lower the significance of opposition politics to such levels of cheap and dangerous opportunism as he was exhibiting. We questioned why Sata could be proudly telling the world that he had undertaken to do everything within his capacity to discredit The People’s Republic of China so that they concentrate on defending themselves against his attacks and leave Taiwan at pea
…The People’s Republic of China so that they concentrate on defending themselves against his attacks and leave Taiwan at peace. We questioned this kind of thinking because we found it opportunistic because all along in his justification of his incessant attacks on Chinese investment in Zambia, Sata’s fundamental line has been the claim about Chinese investors’ poor attitude towards and treatment of Zambian workers.
…Looking at all these facts, the appropriate conclusion is that Sata’s conduct borders on petty and unbridled opportunism because his stance on China is not driven by a principled position. Sata’s letter is so clear and no amount of denial will alter the truth.
Yes, Dr Scott may argue that it is perfectly normal for diplomats and politicians to use each other to achieve a common cause. That may be correct. However, it is morally wrong for politicians to behave in the manner that Sata is going
…That may be correct. However, it is morally wrong for politicians to behave in the manner that Sata is going about his politics, especially over the China and Taiwan issue.
…From Sata’s letter, it is clear that whatever he has been saying about Chinese investment in Zambia is not what he genuinely believes in as a matter of ideological positioning but because he has to please those who have been lining his pockets. And instead of justifying wrong things, Dr Scott would do himself and other politicians a favour by accepting that it is important for people in his position to realise that it is necessary for politicians to be guided by such imperatives as honesty, m
…It is important that politics is regarded as a tool for achieving the common good and not for personal gratification as we have seen in Sata’s case. Like the Xhosa people say in South Africa: “The eagle is trapped.” When defending oneself, one can inadvertently say something that implicates him. Indeed, Sata and his follower Dr Scott have been trapped and are now implicating themselves.
…Scott argues that Sata was in order to call upon Taiwan to help out financially during his visit to Harvard University because this conference is of considerate interest to Taiwan. He also indirectly acknowledges that Sata could have asked for more money than he required but justifies this by saying that PF could have used that extra money on by-elections since it has no access to government resources like the ruling party does.
…This is the dishonesty in Sata we are talking about. Clearly, Sata has chosen to be used as a destructive agent against China by Taiwan for monetary gain. He did not offer himself to do everything in his capacity to discredit the People’s Republic of China for nothing. He can deny this but his letter to his sponsors in Taiwan speaks volumes. Even Dr Scott’s feeble explanation that the change from US $50,000 could have been used for campaigns in by-elections does not hold water.We say this bec
…We say this because we are sure that very few people, if any in PF, knew about Sata’s request for funding.Dr Scott further argues that it is normal for PF to receive funding from allies like Taiwan since there is no law in Zambia supporting funding of political parties. Truly, there may be nothing wrong for any organisation, political or otherwise, to receive financial help from foreign governments or institutions especially for legitimate causes.
…But it becomes a problem when money is received in the manner and for the reasons that PF has been receiving funding from Taiwan. That’s why Sata and his PF vehemently denied being bankrolled by Taiwan in last year’s elections even when Sata made several trips to Malawi to receive his cut. This is because they realised that the activities they were involved in for that money could not be said to be legitimate.
…For that funding from Taiwan, Sata had committed Zambia to recognise Taiwan as a sovereign state contrary to the country’s position that upholds the One China Policy. He was ready to mortgage Zambia over a few pieces of silver for his personal benefit. But he denied all this, even as he continued to go to Malawi to collect more money from his financiers.If the Malawian government had not declared him a prohibited immigrant, probably we could not have had the evidence that Sata is funded by th
…Sata is funded by the Taiwanese. Now that he is a prohibited immigrant, Sata could not travel to Malawi to collect the money.He had to write and release his personal account details for his financiers to transfer the money.Anyway, the bottom line is that Sata is so discredited that he can no longer cherish the dream of ever ruling this country. If his conscience is not dead, we do not think he can be a proud presidential aspirant with such a record behind him.Zambia deserves better than leade
…Zambia deserves better than leaders of Sata’s character and calibre. We do not think there is a shortage of exemplary leaders in the country.
…Now that he is a prohibited immigrant, Sata could not travel to Malawi to collect the money.He had to write and release his personal account details for his financiers to transfer the money.
Anyway, the bottom line is that Sata is so discredited that he can no longer cherish the dream of ever ruling this country. If his conscience is not dead, we do not think he can be a proud presidential aspirant with such a record behind him.
Zambia deserves better than leaders of Sata’s character and calibre. We do not think there is a shortage of exemplary leaders in the country.
Imwe ba Post, where do u think u get the moral authority to question which country Zambia should deal or not deal with? U think u know it all but hey!!! We know how you helped rig the 2001 elections and before you know it, the truth shall be told and u will have yo day in court. About PF & Sata, well, your writtings are so petty & childish, why cant you devote your reporting and comments on important issues of global trade and climate change and how that impacts negatively on Zambia.
Ba Joze is right its a pity a PF Cader like Kabwe doesnt want to hear the truth, it really hurts when the truth comes out….ask Teta he will tell you what SATA was arrested for in the late 50s it was never on Political grounds , all the information received is that the chap was arrested for stealing a bicycle….please go to the records and find for ur self. Cop in the forefront of stealing bics woow! History is so important.
Cograts Ba Joze for the vital data…Ba PF are shrinking
Ba Jose, your infomation is vital no doubt but have you really thought seriously about China.China is colonising Zambia in a way.We seem to be supporting china blindly.If Taiwan is recognised by the UN why shouldnt we do so also. China seem to be blind folding alot of Zambians and we dont seem to have a foresight.in the next 10 years our economy will be run by chinese but yet here we are embracing them. We need to tell the chinese where to get off.Sata has a vision but we are too blind to see
T boz, dont you think the UN is a manipulated US department???? dont you realise that before the second world war Taiwan was a chinese island? you tell me you dont know? Dont you know that Korea both North and South were one but split after the second world war? in addition you dont remeber that we had East and West Germany??? Came on……………i agree with you that the only threat is to deal with the colonaisation of Zambia economically but thier investment is far greater than whaever engla
Kabwe (28),
I have just realised that my Presido Sata is a mischievous misfit in public affairs in the business of using us bamuposa mabwe to pocket commissions for international rhetoric.Though I’m a blind cadre senses are coming in now and can see a futureless madala corning us. Guy Scot a businessman dependent on GRZ is a kamucheka for lChuchu well embedded for consistent data flow. He is the one filtering data to the Post/chuchu. My Presido is naked and vulnerable to crew.
I agree with writer of this article. He says: I foresee Sata’s blatant political opportunism in international politics curving him into some unscheduled graveyard. Mysterious or fatal international political prostitution doesn’t hold.Certainly sata is not sophisticated for the hell predominant at that level. He is better off fooling Zambians than gambling on the international scene where Gold digging mafias of fortune and big money are aplenty and active.
Yes Dr. Sata’s PhD is coming from Havard University, you can’t compare that to that community college called ‘harding university’. Dr. Sata is a better politician than the entire MMD administration. Yes Sata may have stolen back in the 1950s but he was stealing from the British colonial government, and in our opinion there was nothing wrong with that. Dr. Sata joins a list of real freedom fighters that some of you are insulting today and yet it was him that brought the freedom we enjoy today.
LT can you remove all the above C&P like you did to others C&P, we are not interested in the repeats, becoz everyone here has got access to the post editorials, we need to discuss intellegintly the above topic.
Dr. Sata is full of strategy, he understands that the west are scared of the chinese and he is using that to his advatange. We also know that the Post are paid by the MMD administration and they will do anything to try and discredit Dr. Sata but it will never work. Dr. Sata is a solid man and has plenty of experience to deal with such homos like Fred M’membe. Dr. Sata is making the trips around the world to get support for his soon to come gov’t administration.
Viva Sata, Long Live PF.
Pro Sata,
You mean you have such disabilities even on simple blog English? Please strive to be coherent atleast in public domains. Your deficiencies herein reflect very bad on your President. People might not clear their belief that Sata a thug leads fellow thugs.
Observer,
I’m sure you can understand that I am not white or rather English but I’m sure you got the message that PF is making the next Gov’t. By the way, don’t be too much of an ‘uncle tom’!
What is this obsession with Sata????..
#38 Am I ‘SOME ARE SOME OF US’ from Kalingsdale University, whose only interest is to show off how well I write my English, which I learned at Kalingsdale University and teach u fellow bloggers, becoz I was born white, rather English!!!
Gentlemen leave Sata alone he is a lost sheep. We are in the European union and we know more of what is happening to the world economy. China and India are giving headache to the west. After all China is better than other developed nations when it comes to trade. All the week long the focus has been on china even BBC has repeatedly reported about chinas booming economy. Anyone who is against china is wasting time. The real issue is to tacle our problems like fuel shortages.
GLUCO you are right, you cant give strategical companies to foreigners to run if you do so this is the result. This is the reason why I have been against the selling of ZANACO to that Holland bank. This modern colonisation and imperialism in the name of globalization we kill our economy. One day you will find ourselves in a situation where we are told when one should sleep with your wife. Zambians woke up and be vigilant for betterment of our lives
#41 Let them go on talking about Sata and make him popular once again among the urban dwellers, who have access to internet and read the papers and unpopular to rural dwellers.
All those postings are not mine. That’s the work of FACT umwana wandoshi, kapesula, kakuni, kalingongo.
Are we to assume that Zambia is immune from the current oil price increases???..Oil is currently trading at $86.55 a barrel..!!!..Get real..if you want to drive your car then you will all have to pay market rates!!!..THE REAL ISSUE IS WHY THE GOVERNMENT IS SO SLOW IN ACQUIRING sufficient amounts of oil!!!..perhaps you can send your precious SATA to venezuela to beg for free oil
45 #Chibale dont you know that black gold cake is becoming small. Instead of cooperating pipo like G Walker are imposing sanctions on countries like Iran which supply oil to the world. What do you expect? Increase in oil prices are political intended for few individuals to survive. Instead of doing research and develop other means of scuring gases. This monopoly is dangerous, its greedy.
Jose,Easy and Observer you are just the same person with little or no brain to see things the way they are. Sata is not the only person to ask for donations LPM is also part of the problem.Running a political party is like running a business.Whats why parties with associate themselves with pipo with money to fund their daily running of their political parties whether in USA, Britain or German.Thats why govts are trying to find ways of funding the political parties in a transparent way
The stupidity that bedevils politicians in this country is stinking, one really feels like cutting off Magande and Levy’s heads because they seem to be very big ones just for ornamental “kulibonesha ta” while serving zero purpose. If I were a president of a country and a silly western company blackmails me by creating stupid artificial oil shortages to spark unrest, they will wake up in their home country, the very next day, deported live so. Deport such fools you *****, not Kalaki!
I have noticed a very sorry pattern on this site, why is it that only Bembas do not see wrong in what Sata is doing? They were the same people too who did not see anything wrong in Chiluba’s addiction to mediocrity and theft of public funds. I wonder, had Luapula and the north been a country on its own, it would be worse than Zaire, the entire region seems to beseriously cultured around lies, stealing and all manner of stinking vices, why?
#49 Always dull pipo discuss tribal MBUYA!! and you stink in your mind, who is being tribal here?
I fail to understand the cadre mentality that some chaps have , how can one support a person lying about his booking? how? its shamless its stealing and stealing is wrong. But people are praising SATA for things he does not understand.The Americans will use anyone to win support as long as they dont support something. Its disgraceful for a well known reputable university to choose someone who has no idea of the history of Taiwan and China to give a lecture , its a disgrace!!!
#34 shut up with your Sata bullshit. He is never comming into power as long as there are humans on this plante. Try next millenium to bring your cadre stupidity..
Pro Sata, you have to be mad to continue supporting a clown like Sata. Zambians, please learn from past mistakes. Kaunda warned us about Kafupi’s kleptocracy but we did not listen. Now we know the Cobra is also a bicycle thief yet some are adamant that he is presidential material? Wake up Zambia, we have better people to lead us not opportunists like Sata. Had Sata become President, he could have continued the plunder and Zambia would have been worse than the situation in Zimbabwe today.
Dear company
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