Thursday, April 12, 2012

Some companies shortlisted for supply of oil are corrupt - Lifuka

Some companies shortlisted for supply of oil are corrupt - Lifuka
By Kabanda Chulu and Bright Mukwasa
Wed 11 Apr. 2012, 13:30 CAT

THE fight against corruption will become a mockery if government goes ahead to consider bids for the supply and delivery of fuel products from companies associated with unethical business practices, says Reuben Lifuka.

The Ministry of Mines, Energy and Water Development through the Zambia Public Procurement Authority (ZPPA) has shortlisted 13 companies for the supply and delivery of 216,920,000 litres of diesel and 21,230,000 litres of unleaded petrol.

"We expressed dissatisfaction with the last procurement process which was fraught with allegations of impropriety from senior government officials at the time. Oil supply contracts are usually large contracts which provide opportunities for bribery and kickbacks if necessary measures to run an open and transparent procurement of suppliers are not put in place," Lifuka said.

"We are aware that some of the companies which have been shortlisted, are associated with some individuals who government is pursuing for alleged corrupt activities. It will be a mockery of the whole corruption fight if government went ahead to consider bids from companies associated with unethical business practices. Government should in fact demand that all companies bidding for this contract demonstrate that they have strong anti-corruption measures in place to curb bribery, kick backs and all forms of corruption, in their entire supply chain."

He explained that Zambia was struggling with high pump prices for fuel and if not addressed, the bribery that occurs at the procurement stage was a cost that will eventually be passed on to the public.

"Government, in its desire to lower the fuel prices, can play a meaningful role by ensuring that all opportunities for corruption in the procurement process are eliminated. All companies with tarnished reputations should be blacklisted; this is a standard practice for whitewashing procurement systems in the world," said Lifuka.

"We are taking a keen interest in this procurement process and we have initiated a procurement watch process in order for us to provide necessary checks and balances for the benefit of the Zambian people. We are also doing everything possible, in our own small way, in conjunction with a number of sister chapters throughout the Transparency Movement, to do background checks on the companies that have been shortlisted. This is in an effort to ensure that only deserving companies get the government contract to supply oil to this country."

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