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Zambia’s Procurement Agency Reject Trafigura, Gunvor

The Zambia Public Procurement Authority has refused to rubber stamp the decision by the Ministry of Energy to award an oil supply deal to Trafigura and Gunvor.

According to sources, the authority is not comfortable with the manner in which the PF government arrived at the decision to award the two companies the multi-billion kwacha oil deals.

The procurement agency is particularly resisting excessive interest by senior PF officials and State House in the handling of the oil procurement deal which they contend fails the test of transparency.

Last week opposition MMD president Nevers Mumba raised a red flag saying State House had allegedly interfered in the tender process prompting the PF government to put the oil procurement process under investigatory review.

Speaking at the Mulungushi International Conference Centre in Lusaka when he was handed the instruments of power for the former ruling party, Dr. Mumba said the 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. Gunvor’s bid would save Zambia $40m compared to the next lowest bidder and $51m compared to the previous supplier. Trafigula Oil Company would supply the 216,920,000 litres of diesel and 21,230,000 litres of unleaded petrol.

In March this year, President Sata terminated the contract of the procurement agency’s director general Samuel Chibuye in the guise of promoting transparency although critics viewed the action as a way of installing a PF puppet to manage public procurement affairs.

 

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