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Ensure transparency in contracts, Lifuka urges govt

Ensure transparency in contracts, Lifuka urges govt
By Kabanda Chulu
Sunday January 06, 2008 [03:00]

THE government must ensure transparency in all national contracts and should not wait for people to express their views about certain agreements, Transparency International Zambia (TIZ) president Reuben Lifuka has said. And Economics Association of Zambia (EAZ) national secretary Chibamba Kanyama said the engaging of a company from an oil-producing country to supply crude oil to Zambia was a positive development since it would help remove crooked middlemen in the supply of the commodity.

Commenting on the US $1.2 billion two-year contract that the government signed last Friday with the International Petroleum Group (IPG) of Kuwait for the supply of 1.440,000 metric tonnes of commingled petroleum feedstock, Lifuka said there was need to find a more lasting solution to problems being experienced in the petroleum sector.

“It could have been helpful if we had seen the contract details because it is rather difficult to rely on a government statement. However, we are happy with the levels of transparency being shown in this particular contract and this transparency should be extended to all national contracts and government should come out in the open when people express their views about certain contracts,” said Lifuka.

“Actually government should regularly monitor IPG to ensure a reliable and efficient supply of the commodity because it will not be good to experience another fuel crisis.”

And Kanyama said the EAZ was still considering the matter and would next week issue a full statement.

“But our interim comment is that this is a good development especially that government has contracted a supplier from an oil producing nation rather than middlemen because this will help to hedge (protect) against negative impacts in the event of World fuel crisis since companies from oil producing countries are given priority status,” said Kanyama.

And Energy and Financial (ENFIN) solutions managing partner Andrew Kamanga said having a long-term fixed contract would help to guarantee security of supply thereby doing away with shortages of the commodity.

“Finally government has done what used to prevail previously when the same company IPG used to supply ZIMOIL and government should be commended over this but we don’t know what they have agreed on pricing and if it is open ended then it will lead to problems,” said Kamanga.

Labels: EAZ, OIL, PROCUREMENT SYSTEMS, TIZ

posted by MrK @ 3:54 AM