Maravi

Govt signs $500m oil deal with Trafigura

Govt signs $500m oil deal with Trafigura
By Kabanda Chulu
Sat 01 Sep. 2012, 10:10 CAT

GOVERNMENT has signed a one year US$500 million contract with Netherland's multinational commodity trader, Trafigura, for the supply and delivery of finished petroleum products because Zambian investigative wings have cleared the company.

And energy permanent secretary George Zulu has claimed that the MMD government paid for six shipments of crude oil from Nigeria that have never been delivered.

Responding to questions from journalists after signing the contract for the supply and delivery of 216 million litres of petrol and 21 million litres of diesel yesterday in Lusaka with Trafigura - Puma Energy's parent company, Zulu said the engagement of suppliers for both finished and petroleum products and feedstock had gone through a transparent process.

"We have been accused of engaging in corrupt practices but we have done the best we can in the interest of the people and this is why the PF government brought back the abuse of office clause to deter serving officers from engaging in these vices," he said.

"We have received no such report from people and the security wings, in fact, the companies were cleared and we could not have engaged them if they were not cleared. The police, ZPPA (Zambia Public Procurement Authority) told us to go ahead and negotiate and the Attorney General's office gave advice at each and every stage."

On the Nigerian issue, Zulu could not explain clearly why Zambia sought to import crude oil from Nigeria when Indeni Refinery was built to process specific crude oil feedstock especially from the Arabian regions.

"The agreement to procure oil from Nigeria has been in place for the past few years except that the previous regime treated this matter in a confidential manner such that we are not sure whether the nation benefited from this arrangement," Zulu said.

"I was sent to Nigeria and what I found is shocking because there is a man…who is claiming US$5 million commission since he facilitated the deal but I can't say more and I urge security wings to look into this matter."

When asked about quantities involved, how much was paid and the period the incident occurred, Zulu said Zambia paid for six shipments worth 90,000 metric tonnes each under the MMD government.

"Nothing has been delivered but Zambia paid for these commodities; I have figures and documents showing that our Ministry of Finance paid but this money never reached the Nigerian Oil Company," said Zulu.

Labels: MMD, OIL, TRAFIGURA LTD

posted by MrK @ 2:28 PM