Zambia’s Oil Procurement Companies Under Investigation

Under pressure from critics, the Patriotic Front government has agreed to put the recently awarded contracts to Trafigura and Gunvor for the supply of oil to Zambia under review by the investigatory wings, who will look into whether or not the proper tendering process was followed.

The action comes in view of newly elected MMD party president Nevers Mumba’s claim that State House interfered in the tender procedure.

Speaking at the Mulungushi International Conference Centre on Friday, Dr. Mumba said that the Trafigula oil scandal would soon bring the PF Government to its knees.

“This oil saga will soon surface and we advise the Minister of Energy to ignore any political interference in this deal and reverse the unfortunate development,”  Mumba said.  “This singular act will result in the Zambian tax payer loosing US$43 million per year without adding the subsidy on pump price. We are aware of that phone call that was made on that fateful day to influence the decision.”

Gunvor was selected to supply and deliver 1.4 million tonnes of crude petroleum feedstock, while Trafigula Oil Company would supply the 216,920,000 litres of diesel and 21,230,000 litres of unleaded petrol.  Lawyers for Gunvor have stated that the company’s bid would save Zambia $40m compared to the next lowest bidder and $51m compared to the previous supplier.

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