Sunday, March 3, 2024

Government backs its Trafigura Oil deal


Chief Government Spokesperson, Kennedy Sakeni
Chief Government Spokesperson, Kennedy Sakeni

Information and Broadcasting Services minister Kennedy Sakeni says as far as government is concerned , the contract to procure oil for the country was awarded correctly and transparently to Trafigura, contrary to reports in some sections of the media.Mr. Sakeni has for this reason invited members of the general public with information to the contrary to freely approach relevant wings of the Government and put their case across.

ZANIS reports that the Information and Broadcasting minister said this in a statement , in Lusaka, today.

“ As a matter of fact, the public may wish to know that Trafigura is the company that bought BP Oil company in Zambia, now operating as Puma (Z) Limited, “ he said.

He explained that the company is therefore highly reputable and credible in the oil industry worldwide.Whatever is being insinuated around the company’s oil procurement deal with Zambia are mere assumptions with no aorta of truth in them.He explained that the oil pricing structures in Zambia and its neighbouring countries may not be at par depending on distances from seaports. Others may be selling at higher or low prices.

“ Otherwise, I would not like to say much on the issue to avoid giving credence to what are clearly wild allegations, “ he said.

He said government remains unflinchingly committed to transparent and accountable utilization of public resources for national benefit.Government recently signed a one year US$500 million contract with Netherland’s multinational commodity trader, Trafigura, for the supply and delivery of finished petroleum products because Zambian investigative wings have cleared the company.

However ,the Netherlands based Oil firm was embroiled in an investigation into Justice minister Winter Kabimba who was accused of taking bribes over the contract.

According to the Guardian( Trafigura categorically refutes any allegation of corruption at any stage before, during or after the award of this tender and welcomes the investigation by the Zambian Anti-Corruption Commission.”The company added that it had never made any payments to Midland Energy.

Kabimba is a director of Midland Energy and the Guardian has seen copies of the company’s incorporation documents which list the minister as a board member and shareholder. The company was registered on 10 January 2012, four months after the current government came into power.

Local reports suggested that the allegations against Kabimba have been made by sources close to Zambia’s defence minister, Geoffrey Mwamba. Among the claims are that he recently travelled to Lebanon to collect the payment on behalf of Midlands Energy.

However, the Anti- Corruption Commission (ACC ) has since cleared the minister of the allegations over the Trafigura Oil deal.
[ZANIS/the Guardian]


  1. Mwandi Wynter Kabimba enjoy the money,no one can pin you down you have played your cards right and have an ear and stamp of approval from the president.Its your time to enjoy dirty money.For alas like grass it shall be gone soon and all you have worked for will be given to someone else.In the meantime ‘Its party time’

  2. And that’s how the cookie crumbles!!! We will finally have the true figure of how many were involved, just watch out….U cant hide a wrong/corrupt contract forever!!

  3. Zambians look forward to the day these PF criminals will be prosecuted with their criminal money they have stolen from Zambians.

    They all deserve death by shooting to their little heads.

    Sakeni should know that he wont be left free, sakeni should have known by his previous experience at the Red Brick House.

    Zambians hates these PF thugs who like Kabimba & Sata are sending their PF thugs to kill Zambians in ritual killings.

    Having won free and fair elections in 2011, they have forgotten that it was Zambians who voted for them. They think its their little illiterate ignorant witch doctors who made them to be voted for!

    They are chimpanzees in the maize field! Stealing!

  4. Ba Sakeni instead of buying from a Netherlands based company, which is not an oil producing company, why not buy directly from the producers or one of the OPEC members; even from Angola? Your logic of distance as one factor pushing the cost of local petroleum products does not make sense. It would be much cheap to deal at government to government level with oil producing countries e.g. our neighbour Angola and that way you will cut on expenses. The same Trafigura (which is just a middleman) may be buying oil from Angola then to Netherlands and supplying to Zambia, and hence the high cost of our fuel.

    • You must be a very dull analyst, do you understand or know the composition of the oil from Angola?? Do a proper research and stop yapping…

    • Mr Dre, Let us give counter arguments with maturity. Anyway, sharing the same platform with teenagers can be a problem sometimes. You just end up being insulted (like you have done). Don’t tell meTrafirura is the only or at least the cheapest source of oil? Buying petrol or diesel from a Gas Station, lets say in Venezuela or Kuwait and shipping to Zambia is cheaper than the deal the government has entered in with Trafigura (even though it is at wholesale price). Search what kind of company Trafigura is and its poor environmental record? Don’t be surprised if they supply us with high sulphur content diesel or substandard petrol…

  5. @ The Analyst from Tokyo , what are you talking about? You are completely mixed up with your analysis. Trafigura are traders and not oil producers. Angola produces crude oil which is exported to USA where they have the capacity to process such heavy stuff. Trafigura buys finished product and looks for customers. Please do some research and understand how the industry works.

    • I am not sure if there is a law which forbids the Zambian government from buying the petroleum products where Trafigura buys? You seem to be more informed than I am; thanks for that. You can educate me on that. As for the heavy oils from Angola it is possible to retrofit INDENI to handle heavy crude oils (the cost of retrofitting is almost equal to the cost of buying opposition MPs and sponsoring bye elections). The fact is many countries in the Middle East refine their oil and a government to government agreement (or MOU) is certainly possible. By the way the Angolan government offered to supply refined oil products but due to reasons best known to GRZ, the deal never pulled through. Do some research as well so that together we can help our beloved country save some money. Thanks

    • This debate…Indeni Refinery was hurriedly built in the seventies, just like TAZARA, hurriedly put together with no long term goal. It reprocesses co-mingled diesel, petrol and paraffin. It is not a normal refinery, maybe that is why these products are marginally more expensive in Zambia than any other Countries in the region.

  6. Aren’t they the company that dumped radioactive waste in Ivory Coast? Shows how much they care for Africa.

  7. Google the word Trafigura and you will see how corrupt they have been. They are well know for being corrupt and dealing with corrupt regimes.

    • @CCC you are right. How can a company that was cited for dumping toxic worst in Ivory Coast (leading to deaths) be said to be of high integrity. When BP were spinning off their African investments they were mainly interested in the return on the investment not on the integrity and credibility of the buyer. So, to argue that after all BP even sold them the Africa assets is just a sign of dullness. One wonders what sort of intelligence officer this man was in his day in OP. These people have learnt from the mistake of late FJT and RB that they’ll only receive corruption money in cash and probably offshore.

  8. This is boring, and the only interesting aspect is that this story has only been picked up by LT. Slow day for news LT? The article in the Guardian is from December last year, I thought news is supposed to be about something new??? I have a life!!

  9. The question really is; Couldn’t we have engaged a more credible company for such a contract? Trafigura has a scandalous reputation – i) Dumping toxic waste in Ivory Coast for which it had to pay compensation as some people died. It was also fined for the same in the Netherlands ii) Was apparently involved in the Iraqi Oil for food scandal iii) A toxic waste explosion in Norway iv) A dodgy oil deal in Malta v) Attempts to gag the press and parliament in the UK over the toxic scandal. All this info. is available when you goggle the name. Just wondering whether this Zambian deal has some pecuniary benefits for some people in govt.

  10. The question is, members of the Zambian In Poverty, was it in order for Mr Wynter Kabimba to do this deal for Zambians as Party Secretary General of PF. At the GBM opened his mouth regarding Mr Wynter Kabimba being investigated over the Anti-corruption and DEC he was not a MINISTER in Government. Sadly Zambians In Poverty he was being allowed to attend Cabinet Meetings.

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