Maravi

Lubinda demands probe of Glencore oil supply contract

Lubinda demands probe of Glencore oil supply contract
By Chibaula Silwamba
Fri 19 Mar. 2010, 04:30 CAT

Patriotic Front spokesperson Given Lubinda yesterday demanded that the Office of the Auditor General, ACC, DEC and Zambia Police must investigate the government's awarding of a crude oil supply contract to Glencore Energy UK Limited, which will lead to Zambia losing US $32million (about K230billion).

Commenting on revelations that Zambia will lose about US $32 million after awarding a contract to Glencore Energy UK Limited to supply and deliver 1.44 million metric tonnes of crude oil for the 2010/2011 period, Lubinda demanded that energy and water development minister Kenneth Konga must come out clean on this transaction and explain to Zambians what motivated the awarding of the contract to the fourth best bidder, Glencore Energy UK Limited.

“Obviously when they were doing the assessments of the bid it must have been very well clear for everyone who was involved that Glencore was offering the worst bid,” Lubinda said. “What considerations were taken to award Glencore when there are others that gave better offers? The reasons must be laid bare now.”

Lubinda, who is also president of African Parliamentarians Network Against Corruption (APNAC), said Konga must come out clean on this matter and explain to the Zambian people what motivated their awarding of the contract to the fourth best bidder.

“Why didn't they give it to the first three? What did Glencore offer, which the others did not offer? For any person to go into a shop to buy an expensive product when there is available on the market a similar product at a lower cost raises suspicion of impropriety by the person who is buying.”

Lubinda said the transactions must be probed.
“This requires immediate investigations by the Office of the Auditor General. The Auditor General should not wait until the end of the year to audit this transaction.

The Anti Corruption Commission (ACC), if it is worth its name and integrity, must delve into this matter,” Lubinda said. “Even the Drug Enforcement Commission (DEC), anti money laundering unit of the Zambia Police must investigate this matter and inform the citizens the circumstances under which Glencore was given that contract. Failure by government investigative institutions to investigate this matter will be confirming the fact that all these institutions will only operate at the behest of the President, they will not act unless the President directs them to do so.

That is not the intention of Parliament when it created these institutions. The intention was that these institutions will be activated to swing into action when matters such as this are revealed.”

Lubinda said investigative wings were under test.

“It is not only the political leadership of the MMD that is at the test, the investigative wings have also been put on a test,” he said. “They can move in immediately and conduct a forensic audit because Zambians are not going to sit back and watch their country bleed so much of its taxpayers' money.

That expensive contract will obviously increase the pump prices of fuel and will affect the economy. This will lead to spiral inflation because the government is going to try and recover the money.”

Lubinda said the MMD government had no interest in protecting Zambia's resources.
“The MMD government in all their transactions, they have all other interests except the interests of the country,” said Lubinda. “All these issues that are occurring are being recorded and time will come and that time is very near when all these people that are making all these decisions will be asked to account for such decisions. When that time comes, it will not only be the politicians, it will also include the technocrats.”

Sources close to the just-concluded crude oil supply tender process revealed that the government awarded the contract to Glencore Energy UK Limited, which was the fourth best ranked bidder, after abandoning plans to engage Russia's LITASCO following public outcry that ensued subsequent to The Post's expose'.

“The truth is that, according to the calculations of average prices, Glencore Energy UK Limited was fourth and was US $23 per tonne higher than the next best offer. On 1.44 million metric tonnes, this represents a loss of US $32 million to the Zambian treasury,” the source said.

Late last year, The Post revealed that State House had tasked energy and water development minister Kenneth Konga to ensure that the contract was given to Lukoil International Trading and Supply Company (LITASCO).

Labels: CORRUPTION, FUEL, GIVEN LUBINDA, GLENCORE INTERNATIONAL AG

posted by MrK @ 2:12 PM