Kapita warns Konga, Rupiah over LITASCO

Kapita warns Konga, Rupiah over LITASCO
By Chibaula Silwamba
Tue 12 Jan. 2010, 04:00 CAT

Energy minister Kenneth Konga and President Rupiah Banda will be brought to book for conniving with LITASCO in the crude oil tender process, UPND vice-president Richard Kapita warned yesterday.

Commenting on The Post expose of the government's attempt to rig the bid for the supply and delivery of 1.4 million metric tonnes of crude oil in favour of Russia's LITASCO, when Konga availed the original tender document to LITASCO official Leon Hayward to make suggestions and changes to it in order to disadvantage competitors, Kapita said professionally that was illegal and culprits were liable to prosecution.

“It's illegal. In business terms that is a no-no. When the other bidders get to know it, they have a right to withdraw. There is no professionalism there, let alone integrity. The whole process is full of scams, deals but we know they are trying to raise some money through procurement of crude oil to Zambia and that should not be allowed by Zambians,” Kapita said.

“It means that you are giving one bidder advantage over others. It means that all that hullabaloo about tendering for so many companies was just a shrug because they already knew who they wanted to give that deal to and probably they already worked out the percentages of their kickbacks.”

Kapita accused President Banda of frequently and deliberately frustrating the tendering for the procurement of oil for his own benefits.

“Zambians must not allow this. Both Konga and Banda and all those involved in these scams will be brought to book when the pact government comes to power next year,” Kapita warned. “I can understand why reputable organisations from other countries withdrew, it's because they knew that there was a preferred bidder who was given all the information so that they can ensure that they can show that it has won. But we know that the process of tender was deliberately frustrated.”

Last week, well-placed government sources revealed to The Post that government, through Konga availed the original tender document to LITASCO through Hayward for the firm to suggest some changes in its favour and disadvantage competitors.

But when contacted for comment, Konga denied any linkage to LITASCO although insiders said he had been working closely with Hayward from June last year when a Zambian businessman introduced LITASCO to President Banda at State House.
Sources revealed that Konga and Hayward met on several occasions in Johannesburg and Lusaka to discuss the oil procurement deal.

A comparison between the original tender document and the revised one showed that the Ministry of Energy and Water Development and the Zambia Public Procurement Authority (ZPPA) made changes on all the points that Hayward disapproved.

When contacted from Dubai, Hayward declined to comment on the revelations.

Responding to a press query, Konga stated that he had no role in the tender process other than giving policy guidance at the Ministry of Energy and Water Development.

“I, therefore, did not give any tender document to LITASCO. The document can be accessed by any third parties (other than the Ministry of Energy and Water Development and Zambia Public Procurement Authority) when they buy it from ZPPA. Given the fact that the document can be sold to anyone who wants it, it is in that sense a public document,” stated Konga.

But a ZPPA source dismissed Konga's explanation.

“Just wait and see, unless something fundamentally changes, this contract is destined for LITASCO and there is enough evidence to show that Mr Konga has been in touch with Leon Hayward of LITASCO,” the source said.