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Reject govt’s manoeuvres to manipulate crude oil tender process, HH urges Zambians

COMMENT - Litasco (LUKoil International Trading and Supply Company) is the exclusive international marketing and trading company of the Russian LUKoil Group.

Reject govt’s manoeuvres to manipulate crude oil tender process, HH urges Zambians
By Chibaula Silwamba
Fri 27 Nov. 2009, 04:01 CAT

UPND president Hakainde Hichilema yesterday urged Zambians to reject the government's manoeuvres to manipulate the tender process in the supply and delivery of crude oil for the 2010-2011 period in favour of Russia's LITASCO, which energy minister Kenneth Konga allegedly negotiated with.

Commenting on revelations that the US $1.4 billion two-year contract to supply and deliver 1,440,000 metric tonnes of commingled petroleum feedstock will not be transparent because the government, through Konga, had already selected Lukoil International Trading and Supply Company (LITASCO) as a preferred bidder and that the ongoing bidding process being done by the Zambia Public Procurement Authority (ZPPA) will just be a rubber stamp procedure, Hichilema warned President Rupiah Banda and his administration against interfering with the crude oil procurement.

He said Zambians would protest against any manoeuvres to manipulate the tender process.

“As Zambians, together, we must say 'no' and not allow one family to enrich itself. If this contract goes on, we must not allow, even if it means going on the streets we will do that,” Hichilema said.

“He President Banda has removed Peter Mumba, permanent secretary of Ministry of Energy so that now he can have a free hand in the procurement of crude oil. He removed David Kapitolo at Tender Board; he removed Max Nkole from Task Force to prepare for massive corruption.”

Hichilema said the MMD government was trying to manipulate the crude oil procurement to get a commission, which they would use for their campaigns ahead of the 2011 tripartite elections.

“Appetite for corruption in the MMD, and more particularly at the presidential level, is amazing. It's so damaging to the economy. There is no need to interfere with the tender process. Zambian people should put their foot down. We must all reject the manoeuvres by the MMD,” Hichilema urged.

“The fuel shortage was the design by Rupiah Banda to cancel all the contracts that late Levy Mwanawasa left so that he can access some commissions along the way. I think this is the time the people of Zambia must say, 'no!' The level of corruption is too high starting from the top. Rupiah Banda tolerates corruption.”

Hichilema said members of opposition political parties and other Zambians should come together to reject the manipulation of tender processes.

“The fuel supply interruption that we experienced in the last two months has been too much. We should not allow Rupiah Banda and his corrupt clique to interfere with the procurement process of crude oil,” said Hichilema.

But a well-placed source in government yesterday revealed that President Banda, using Konga, is determined to award this bid to LITASCO because he started discussions with them around June.

“Just watch this space,” the source said. “This is a done-deal even before bids are submitted. Kenneth Konga has been on the run ensuring that the loose ends are tied. No amount of public outcry will change the President's position on this matter because they have already decided that it is LITASCO. One wonders why ZPPA is even inviting tenders when we all know, at least in government circles, that this contract is going to LITASCO because of State House's involvement. It is a matter of public record that LITASCO participated in the last bid and lost.

“In defending or justifying this rotten deal, they will tell you all sorts of lies because they are determined to give this contract to LITASCO largely for personal benefits although they will tell you they are doing it in national interest.

You guys will keep on exposing scandal after scandal and these people in government will not be scared. Not too long ago, you exposed how State House interfered in the tender process when it pushed for a fuel supply contract for Dalbit. An official from Dalbit was even chauffer-driven in a government Mercedes Benz. That's how arrogant President Banda is on these matters.”

Well-placed government sources told The Post that the government directed the ZPPA to design tender evaluations and specifications that could only be met by LITASCO and that the first cargo delivery was scheduled by January 1, 2010 and yet bids would close on December 18, 2009.

“The other week Hon Konga was in Nigeria and Tanzania on an alleged private visit where he allegedly met officials from this company and it is like they have finalised everything so government wants to bid-rig in favour of LITASCO,” the source disclosed.

“In this process, the ZPPA will be used to rubber stamp and try to legitimise the whole process. Imagine the bids will close on 18th December, 2009 and two weeks later (1st January 2010), a successful bidder will have to supply the first cargo or shipment, meaning that the ZPPA will have no time to evaluate bids that will qualify to the next stage, so it is like everything has been staged-managed.”

Another well-placed government source disclosed that the Ministry of Energy submitted before ZPPA a tender document inviting bidders but there were efforts to doctor the same document in an effort to secure the bid for LITASCO.

“The changes that have been made to the original tender document prepared by the Ministry of Energy and Water Development are: (1) bidders must own or time charter in excess of 30 oil tankers at any given time; (2) the bidder must own or operate a refinery capacity in excess of 1 million barrels per day; (3) bidders must produce crude oil in excess of 1 million barrels per day and (4) bidders must trade in excess of 2 million of crude oil per month,” the source said.

“The above conditions are aimed at eliminating potential competitors who could otherwise supply the requirements for Zambia. All these efforts are aimed at eliminating all competition and are stage-managed to give this contract to LITASCO.”

But ZPPA director general Samuel Chibuye on Monday said making changes to the tender document is a normal procedure. He said ZPPA had received some correspondence from other bidders, without mentioning their names, who complained that the conditions were too difficult, hence ZPPA and the Ministry of Energy and Water Development were looking at those concerns to find a level playing field.

“The changes are not final,” Chibuye said. “We have also received some correspondence from other bidders who are basically saying that we need to revise some of the conditions because they are too onerous and that is a normal procedure. Bidders are free to complain and make changes. On the basis of those letters we received from bidders, we do normally liaise with the ministry so that we can make certain changes.”

Labels: CORRUPTION, FUEL, HAKAINDE HICHILEMA, KENNETH KONGA, LITASCO, PROCUREMENT SYSTEMS, SAMUEL CHIBUYE, TENDER OFFERS

posted by MrK @ 1:52 PM