ZPPA announces bids for crude oil suppliers
By Chibaula Silwamba
Sun 17 Jan. 2010, 04:00 CAT
LITASCO is among the seven companies that submitted bids to supply and deliver 1.4 million metric tonnes of crude oil to Zambia for the 2010-2011 period.
Opening the bids that were submitted at Zambia Public Procurement Authority (ZPPA) office in Lusaka on Friday, ZPPA acting director of purchasing goods and services Shadreck Shawa announced that seven companies had submitted the bids.
The bidders are Russia's Lukoil International Trading and Supply Company (LITASCO), Kuwait's Independent Petroleum Group (IPG) company, Kenya's Gulf Energy Limited, Glencore Energy UK Limited, Vitol SA, Trafigura and Addax Energy SA.
IPG was the crude oil supplier to Zambia for two years, from 2008 to 2009 and the contract expired on December 31, 2009.
Shawa read a notification of non-participation from Kobil Petroleum Limited.
After this, the bids will be taken to the Ministry of Energy and Water Development for evaluation.
Shawa said the winner of the bid is expected to be announced after about a month.
Last week, well-placed government sources revealed to The Post that the government, through energy minister Kenneth Konga, availed the original tender document to LITASCO through its official Leon 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 Rupiah 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 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.
“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.
Labels: LITASCO, OIL, PROCUREMENT SYSTEMS, ZPPA
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Sata vows to re-nationalise Zamtel once in power
By George Chellah
Fri 15 Jan. 2010, 04:01 CAT
PATRIOTIC Front (PF) leader Michael Sata yesterday vowed to re-nationalise Zamtel after ascending to power in 2011.
The Zambia Development Agency (ZDA) has announced that the four companies that submitted bids in the first round of the Zamtel privatisation process had qualified to the second stage of the bidding process.
The companies that have been short-listed are Bharat Sanchar Nigam (BSNL) Limited of India, LAP Greencom Limited of Libya, Unitel of Angola and Altimo Holding of Russia.
During Hot FM radio's Hot Seat programme yesterday, Sata said he had no regrets over his stance on the re-nationalisation of Zamtel.
“Zamtel belongs to the people of Zambia. Zamtel… is only a question of 13 months before it becomes for the people of Zambia. We will ask the people of Zambia to buy shares in Zamtel. This thing, it will be re-nationalised and no compensation, no compensation! I will re-nationalise it and there will be no compensation,” Sata said.
When reminded about his critics' assertions that he was scaring away investors, Sata responded: “But the investors… we have investors Zain, they are here. I am not saying I am going to re-nationalise Zain, there is MTN, I am not saying I will re-nationalise them. But Zamtel belongs to us, Zamtel and Zanaco belong to the people of Zambia and leave it, that's a hot potato uwaikatako apya!”
Sata said Dr Kenneth Kaunda, despite his mistakes, left the leadership of the country with infrastructure in place.
“…When comrade Rupiah Banda came… instead of improving on Zamtel, he wants to get rid of it because what he wants is his pocket,” Sata said.
On Indeni Oil Refinery, Sata said repairing or bringing new equipment to the refinery was not impossible.
“Scrapping it off, I do not agree because Indeni can continue limping whilst we are extending to bring in a modern refinery, which will refine crude oil. If we can bring in a modern refinery to refine crude oil then we can even buy crude oil from Angola,” Sata said.
“Put up another capacity in Katete where we can bring a pipeline from Mozambique into Katete.
Then the whole Eastern Province does not expect fuel from Ndola to go to entire Eastern Province… At the moment Indeni has been supplying fuel to Malawi. But that pipeline from Mozambique to Katete can take over the supply of fuel to Malawi.”
Sata also said he did not see the reason Zambia hasn't got a refinery nearer to Dar-Es-salaam. He promised to slash some fuel taxes.
“On fuel there are more than 25 taxes and we will slash all those taxes because our policy is lower taxes because if you reduced the taxes you create more employment. This increase of 15 per cent we are going to see loss of jobs. For example, every bag of mealie-meal which is going to pass there will be 15 per cent because no miller is going to absorb 15 per cent on behalf of anybody,” he said.
On LITASCO, Sata said President Banda was very lucky.
“The late Mwanawasa drafted him to be his Vice-President and then later on to become President in a questionable manner but he wants to change everything. The reason why he wants to change everything, comrade Rupiah Banda believes in maximum enjoyment, minimum or no responsibility at all,” Sata said.
“Zambia since independence in 1964, we have had our source of fuel and our source has been the Middle East. Russia is very far away from the Middle East…”
Sata described the whole LITASCO transaction as corrupt.
“Why does comrade Kenneth Konga insist that we should go and buy...there is some little commission that's why they are insisting to bring in the Russians. Can Konga or whoever is involved, is it the reason why they want to make him Vice-President?” Sata asked. “Can he tell us why has he abandoned Kuwait, why has he abandoned Iran, why has he abandoned Iraq and all the people in the Middle East including Libya? Why have we abandoned all those people?
It's just a question of corruption, nothing else. They are cashing in…they know they are in a hurry to go and as they are in a hurry to go, that's why at the moment they want to silence PF and the Catholic Church.”
Sata also said the government media were working extremely hard because they knew that PF was getting stronger.
“The government is very jittery. They think they can intimidate me, they think they can intimidate PF,” he said.
And Sata charged that home affairs minister Lameck Mangani was issuing National Registration Cards (NRCs) in secrecy.
“…Zambia belongs to all of you and as Zambia belongs to all of you…the children whom you are denying NRCs cannot get employment,” he said.
Sata said Forum for Leadership Search executive director Edwin Lifwekelo has drifted to the ruling party because of poverty.
“Government is working hard to work with disgruntled people. Now they pick these two university dropouts, that Kabwata and Antonio Mwanza former UNZASU president they are getting some khaki envelopes somewhere…We are not going to attend National Constitutional Conference (NCC) and we shall meet Mwanza in court,” Sata said. “The youngman Mulongoti was nominated, as nominated Member of Parliament, he is supposed to yap like he is doing.”
Sata said poverty had made even educated people to be preoccupied with semantics.
“For example, we have the so-called NCC… that NCC if they are going to rush and say they want to have a constitution on which we are going to run the elections, what type of constitution is that going to be?” Sata asked.
“They want a degree holder to be Speaker…the current constitution a person qualifies to be speaker if he qualifies to be a MP, are they going to tell us that all MPs must be degree holders? We are going back to the colonial days. The so-called graduates who are in that NCC have hijacked the whole process. We are not getting anything in that constitution for the people.”
Labels: LITASCO, NATIONALISATION, SATA, ZAMTEL
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Kabimba calls for tribunal over Konga’s conduct on LITASCO
By George Chellah
Thu 14 Jan. 2010, 04:01 CAT
LUSAKA lawyer Wynter Kabimba (right) yesterday observed that energy minister Kenneth Konga’s alleged conduct on the crude oil supply contract to LITASCO warrants a tribunal.
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 to Zambia in favour of Russia’s LITASCO, Kabimba described the incident as an act of misconduct.
“The information that has been so far reported about the Minister of Energy Mr Konga, if that information has any substance, this is a matter for a parliamentary and ministerial tribunal under the Parliamentary and Ministerial Code of Conduct Act, along the lines of Dora Siliya education minister,” Kabimba said.
“… Because under that Act, it is an act of misconduct for anybody who has inside information in position of a minister or a member of parliament to disclose that information to an outsider by way of giving that outsider pecuniary advantage, which is exactly what Mr Konga has done.
“So I think it will only be fair in the interest of the people of Zambia and the interest of justice that a complaint be filed before the Chief Justice for the tribunal to be constituted to probe into this matter further.”
Last week, well-placed government sources revealed to The Post that the 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 Rupiah 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,” said the source.
Labels: KENNETH KONGA, LITASCO, WYNTER KABIMBA
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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.
Labels: KENNETH KONGA, LITASCO, RICHARD KAPITA, RUPIAH BANDA
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It’s criminal for Konga to give inside information to a bidder, says Lubinda
By George Chellah
Mon 11 Jan. 2010, 04:01 CAT
PATRIOTIC Front (PF) spokesperson Given Lubinda yesterday said
it is criminal for energy minister Kenneth Konga to give inside information to a bidder.
Reacting to the revelations that government, through Konga, availed the original tender document to LITASCO through its official Leon Hayward so that LITASCO could make or suggest some changes in its favour and disadvantage competitors, Lubinda cautioned Konga against such questionable transactions.
“He Konga has no immunity and he must be careful that he will be prosecuted the very day Rupiah Banda leaves State House, Konga will go in for prosecution. So he must stop facilitating such dubious deals and he must come out clean on this issue of LITASCO. It is unacceptable even under the Zambia Public Procurement Authority (ZPPA) Act. It is a crime to give inside information to a bidder,” Lubinda said.
“It is a criminal offence for which Konga could actually face arrest. Konga could actually be indicted now, not even after Rupiah has lost the elections. But now Konga could actually be indicted and he must be careful because we in the opposition could initiate immediately a tribunal to investigate him because that's abuse of office. So can he please drop this hot metal, let him throw it on the laps of Rupiah Banda so that he comes out clean. Otherwise he will face the consequences alone.”
He said everything the MMD under President Banda tries to do is always shrouded in very suspicious events.
“You can look at how they tried to coerce journalists and the media on their self-regulation. All of it was mugged with a lot of underhand methods, bribery, intimidation… everything they do even in the area of contracts, they do things using underhand methods,” Lubinda said.
“Isn't this an explanation for Rupiah Banda's refusal to dismiss Konga over the scandalous handling of the fuel crisis. Now it renders credence to the fact that Rupiah Banda could not take action against Konga because of this ongoing deal. This has been a deal that has already been agreed on between Rupiah Banda and LITASCO and Konga is the purveyor.”
He said President Banda's government was determined to conclude the LITASCO transaction.
“It is for the present and future benefit of Rupiah Banda. Rupiah Banda is preparing himself for and after 2011 that's the reason why he is forcing us to enter into contracts of such long-term nature under very dubious and suspicious circumstances. Under Rupiah Banda State House has been turned into a contract awarding office, that's where deals are negotiated, it's no longer at ZPPA,” Lubinda said.
“It is now at State House and all the time, there are some people who are involved. Can Konga please tell us which other Cabinet minister or MMD steward was involved in the discussions in South Africa? This is a person who has no business at all in transactions of Zambia, particularly in oil but he was the first one to enter into these negotiations.”
He said this rendered support to recent media reports, which were carried about President Banda preparing Konga to take over from Vice-President George Kunda.
“This is a big financial transaction and Rupiah Banda would even sacrifice George Kunda to keep the transaction going. For as long as Konga is retained and he is given more power, that is the reason why Konga has become so arrogant! This explains why there is such closeness between Rupiah Banda and Konga. This is typical of Rupiah Banda. He will see that he creates blue-eyed boys, blue-eyed girls around issues that affect him personally,” Lubinda said. “My advice first is to the civil servants because ultimately, it is the civil servants that shall implement this contract. Let me caution them, those who are coming out and informing the public are doing it for the good of Zambia and for the good of posterity.
But those who shall facilitate such transactions, one day posterity will judge them very harshly. So let them stand up like others, let them stand up in defence of Zambia, in the protection of the resources of Zambia.
“As for Konga and Rupiah, I want to say to Konga he has no immunity and he should not think that he is going to be covered by the blood of Rupiah Banda. Rupiah Banda's immunity shall be removed whether he likes it or not and what about Konga who has no immunity?
He shall face the consequences. He has just to take a leaf of what happened to Chiluba and his blue-eyed boys. Chiluba now he is walking the streets courtesy of Rupiah Banda and George Kunda. But Chiluba's blue-eyed boys are having to suffer the consequences, he too Konga is setting himself a very dangerous trap.”
On Saturday, the government's attempt to rig the bid for the supply and delivery of 1.4 million metric tones of crude oil in favour of Russia's LITASCO was exposed.
Labels: CORRUPTION, GIVEN LUBINDA, KENNETH KONGA, LITASCO, ZPPA
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COMMENT - Interesting. Rather than being open to all, the government's oil contract was actually amended to suit the government's favorite bidder, by the government's favorite bidder themselves. How is this an open and transparant process? And why was LITASCO given so much leeway to begin with? What is it, that made LITASCO so attractive to the government? How much did they pay James Banda or other individuals in government. By the way, this is the flipside of letting INDENI run into the ground. Massive corrupt oil deals, to be followed by the 'privatistation' of INDENI, I am sure.
Govt’s attempt to rig bid for oil supply exposed
By Staff Reporters
Sat 09 Jan. 2010, 04:01 CAT
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 has been exposed.
Well-placed government sources have revealed to The Post that government, through energy minister Kenneth Konga availed the original tender document to LITASCO through its official Leon Hayward so that LITASCO could make or 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 Rupiah Banda at State House.
During a meeting at State House in June, President Banda assured LITASCO that it would get a contract to supply crude oil to Zambia and he involved other government officials to work with LITASCO on this matter.
The sources said several meetings had been held in Johannesburg, South Africa and Lusaka between Konga and LITASCO through Hayward. The source said one of the meetings Konga held in South Africa was in the presence of a named official from State House.
“Discussions have been going on for some time and evidence is there to show that Mr Konga has been in touch with Leon Hayward on a number of occasions,” the source said. “So when the Ministry of Energy prepared the original tender document, Mr Konga availed it to Leon Hayward to make changes to the eligibility conditions in the bid document, which could make LITASCO the only one to meet the conditions. In his handwriting, Leon Hayward made some changes to the original tender document, making LITASCO the only firm that could meet the tender conditions.”
A comparison of the original tender document and the revised one, accessed by The Post, 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.
On page four of the original tender document, Hayward underlined the 'eligibility bidders 2.2.1', which read: “Bids are invited from reputable Oil Trading Companies with more than five years experience in crude oil and/or petroleum products supply for the supply and delivery of 1, 260, 000 MT plus or minus 10 per cent of commingled petroleum feedstock in cargo lots of 60, 000-90, 000 MT at the buyer's option.”
In the revised tender document, which was made after Hayward's comments, the clause was changed to read: “Bids are invited from reputable oil trading companies with experience in crude oil and/or petroleum products supply for the supply and delivery of 1, 440,000 MT plus or minus 10 per cent of comingled petroleum feedstock in cargo lots of 60,000 - 90,000 MT at the buyer's option.”
On page six of the original tender document under bid prices, Hayward wrote: “Good!”
The bid price was, therefore, maintained in the revised tender conduct.
On page seven of the original tender document under documents establishing bidder's eligibility and qualifications, Hayward wrote: “new but good” and underlined it.
Consequently, this condition was also maintained in the revised tender documents.
On page 14 of the original tender document under award criteria, Hayward demanded changes.
In the original tender document the award criteria read: “2.27.1 the client will award contracts as follows: technically responsive bids will be ranked on the comparison of evaluated CIF Dar-Es-Salaam bid prices, for the 1, 260, 000 MT which will be the basis for award.”
However, Hayward wrote: “see over side.”
And on the over side overleaf, Hayward wrote the following suggestions: “The tender will be awarded to the bidder that: (a) is technically responsive, (b) lowest price. However: It is the client's right to place an emphasis on bidders who will serve the strategic requirements of the country in the long term. This includes bidders who owns refineries, produce and trade large volumes of crude oil and are substantial participants in the international oil trading market.”
On page 16 of the original tender document, where it was written: “ITB2.11, the price quoted shall be: CIF Dar-Es-Salaam”, Hayward commented: “Good”
On the same page of the original tender document, where it was written: “ITB2.15 Bid security shall be US$1million”, Hayward underlined it and wrote: “Question? Used to be $2 million.”
Consequently, this condition in the revised tender document was changed in line with Hayward's suggestion to read: “ITB2.15 bid security shall be US$2 million.”
In the original tender document, under preliminary evaluation, Hayward commented: “New good.”
On page 18 of the original tender document providing for bid security of US $1 million, Hayward underlined it and wrote: “$2million?”
This condition was consequently revised in the revised tender document in line with Hayward's suggestion.
It, therefore, read: “2. Bid security of USD 2 million.”
The other conditions in the original tender document under technical and financial evaluation, Hayward commented that they were new and good.
On page 19 and 20 of the original tender document under technical evaluation score card, it read:
“No.: 1.4.
Criterion: have traded in Zambia in the last one-year for at least 50 million USD.
Maximum point: 25.
No.: 1.5.
Criterion: have a registered affiliate in Zambia.
Maximum point: 15.
No.: 1.6.
Criterion: have an agency in Zambia.
Maximum point: 5.
No.: 1.7.
Criterion: Must have a registered affiliate at Cargoes Entry Point (Tanzania).
Maximum point: 15.
No.: 1.8.
Criterion: have an agency in the port of entry - Tanzania.
Maximum point: 10.
No.: 1.9.
Criterion: at least five years in crude oil trading.
Maximum point: 10. ”
But Hayward wrote: “No! This is only for IPG.” IPG is LITASCO's main competitor and won the last tender against LITASCO.
Consequently, in the revised tender document, these conditions were deleted and only left those that were not objected to by Hayward.
Hayward rejected other conditions on the technical evaluation score-card, stating that they were “not practical.”
Therefore, about five maximum qualifications conditions that were rejected by Hayward were consequently left out in the revised tender document.
Hayward also rejected a condition which stated that, “Note 2: bids from sellers with no affiliate or without a registered company in Zambia will be considered non responsive.”
Following Hayward's suggestions, amendments were made to the original tender document by inserting his proposals to the final tender document.
When contacted on phone from Dubai this week, Hayward declined to comment.
“I am not allowed to talk to press on behalf of the company. We have people who do that for us,” said Hayward, who admitted that he is an employee of LITASCO.
Told that he was being contacted directly instead of the press officer because his handwriting was on the tender document, providing suggestions to the Ministry of Energy and Water Development on the changes LITASCO wanted to be made to the document, Hayward responded: “I don't know what you are referring to. But as I have said, I am not allowed to speak to the press on behalf of the company.”
And responding to a press query from The Post, Konga stated that he had no link with LITASCO.
“I refer to your query dated 4th January, 2010. Please note that I have no direct role in the selection of a supplier for Zambia's crude feedstock (oil) for 2010 to 2011. Procurement issues are handled by the Ministerial Tender Committee (MTC) chaired by the permanent secretary,” Konga stated.
“The tender document you referred to was submitted to the Zambia Public Procurement Authority (ZPPA) by the Ministerial Tender Committee (MTC), which in effect is a sub-committee of the Zambia Public Procurement Authority (ZPPA).
Upon receipt of the document, Zambia Public Procurement Authority (ZPPA), as per its mandate, thought that the selection criteria was not adequate and hence amended them, after which were given to prospective bidders, including LITASCO. This is a normal process at Zambia Public Procurement Authority (ZPPA), which is the overall authority over public procurement issues.”
Konga further stated that later on, ZPPA in consultation with the Ministry of Energy and Water Development agreed to amend the selection criteria, which was also circulated to all the bidders.
“As is the normal practice, the Ministry of Energy and Water Development, Zambia Public Procurement Authority (ZPPA) and interested prospective bidders met on 18th December, 2009 in a pre-bid meeting. During this meeting, prospective bidders further gave their comments on the tender document,” Konga stated.
“The proposals that the Ministry of Energy and Water Development and Zambia Public Procurement Authority (ZPPA) found acceptable have been incorporated as a further amendment to the bid document.”
Konga stated that the minutes of this meeting were available at ZPPA for public scrutiny.
“As you can see from the above, I have had no role in this process, other than giving policy guidance at the Ministry of Energy and Water Development. As per the regulations, the Ministry of Energy and Water Development has no direct contact with prospective bidders. All correspondence is through Zambia Public Procurement Authority (ZPPA),” Konga stated.
“The above, notwithstanding, you may wish to note that it is the Ministry of Energy and Water Development that is the client and, therefore, the client has the right to ensure that the result of the tendering process meets the interest of the country.”
Konga stated that was, however, done according to the laid down procedures.
“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,” Konga stated.
“Please note that even if the Ministry of Energy and Water Development wanted, it is not possible to pre-select a supplier under international competitive bidding.
Further, note that until the closing date, it is not possible to tell what and the type of companies that will bid. How then would a person plan to disqualify companies that you do not even know?” Konga asked.
“As indicated above, the public procurement process is transparent enough to guard against acts that may lead to selection of a wrong supplier. Other than the process described above, there are other stages that lead to actual selection of a supplier. The actual evaluation is done by a committee whose work the Ministerial Tender Committee has to approve.
“Thereafter, the Zambia Public Procurement Authority (ZPPA) has to approve the Ministerial Tender Committee's recommendations. In any case, some details of the bids submitted are publicly announced at the time the tender closes.”
But a ZPPA source dismissed Konga's explanation.
“Instead of answering directly the question that you put to him, the minister started lecturing to you about tender procedures and actually lied that the document you have is a public one which can be accessed by anyone who can make comments on it,” the source said.
“The document that was passed to LITASCO by the minister was in a draft form and therefore does not qualify to be referred to as a public document. The two documents you are talking about do not have tender numbers. This shows that they are merely draft and not public documents. A public document is one with a tender number and is advertised. So let the minister give you the tender number on those documents to show that they are public documents.”
The source said President Rupiah Banda, using Konga, is determined to award the contract to LITASCO.
“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.
“The question is, why is Mr Konga only in touch with LITASCO and not other bidders or IPG, the current supplier? And why should the minister be involved in this process instead of the permanent secretary and other technocrats? The truth of the matter is President Banda is deeply involved in this using Mr Konga. Let them deny that they met LITASCO officials at State House in June last year and that from that time Mr Konga and officials from State House have met LITASCO at different times.
“And ask them where one of the President's sons is at the moment and what he is doing there. We know all these things. The President is determined to give this to LITASCO and Mr Konga is only implementing the boss' wish. That's why he in untouchable. Let the President deny meeting LITASCO and discussing this contract. That's why Chibuye the ZPPA director general was put there; it was for him to play the President's game as they are doing now: rigging bids.”
Labels: CORRUPTION, KENNETH KONGA, LEON HAYWARD, LITASCO
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Konga drops plans to award LITASCO crude oil supply deal
By Chiwoyu Sinyangwe
Sat 02 Jan. 2010, 04:01 CAT
ENERGY minister Kenneth Konga has dropped plans to award LITASCO a crude oil supply contract in preference to another foreign firm after his earlier scheme with the Russian company was exposed, sources within the Ministry of Energy have revealed. But Konga said he is not involved in the transaction.
And Zambia Public Procurement Authority (ZPPA) has said all companies that participated in the recently aborted tender process for crude oil supply will have to re-apply under the current bidding process which is expected to close next week on Thursday.
The government last month suspended the process of hiring a foreign company to replace Kuwait oil giant Independent Petroleum Group (IPG) whose two-year contract for the supply and delivery of 1.4 million metric tonnes of commingled petroleum feedstock comes to an end this month.
The government announced the suspension of the deal, saying the move allowed for adjustments to the tender specifications and gave recently appointed permanent secretary in the Ministry of Energy, Teddy Kasonso, time to acquaint himself with the 24-month contract.
It is, however, believed that the cancellation of the earlier tender process followed the exposure by The Post of Konga’s manoeuvres to award the contract to LITASCO.
But in an interview last Tuesday, Konga denied having a hand in the crude oil procurement deal and said only ZPPA had the full control of the processes of public procurement.
“I am sure that you are aware that LPG’s contract to supply crude comes to and end at December 2009. So the government is advertising to request for new suppliers.
Those are the speculations and information somebody was giving you but procurement procedures through the Zambia National Tender Board (now Zambia Public Procurement Authority)…they haven’t even spoken to the prospective bidders, but you somebody told you we have selected LITASCO or some other company even before tender procedures.
So, I don’t know how we can agree because there are procurement procedures that the government has to follow before it attract the bidder,” said Konga. “…I am not responsible for procuring, the tender board is…my ministry just comes up with guidelines and then we submit our request to the tender board.”
Labels: CORRUPTION, KENNETH KONGA, LITASCO, MINISTRY OF ENERGY AND WATER DEVELOPMENT, OIL, PROCUREMENT SYSTEMS, ZPPA
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Sata accuses Shikapwasha of admitting tender manipulation for LITASCO
By Chibaula Silwamba
Sun 06 Dec. 2009, 04:01 CAT
PF president Michael Sata has said chief government spokesperson Lieutenant General Ronnie Shikapwasha has admitted that the government was trying to manipulate the tender process in favour of Russia’s LITASCO to supply and deliver crude oil to Zambia.
Reacting to Lt Gen Shikapwasha’s denunciation of his remarks on LITASCO, Sata said Lt Gen Shikapwasha ignorantly admitted the government’s manoeuvres to manipulate the tender process.
“Shikapwasha did not deny that the government was tampering with the tender process to favour LITASCO. What Shikapwasha was trying to do was to justify that the whole Europe gets oil from Russia. That is admission. What he was doing was admission,” Sata said. “Shikapwasha suffers from an incurable complex because he was justifying that Europeans get fuel from Russia, so why can’t we also get fuel from Russia?
That is why Shikapwasha has even abandoned late president Levy Mwanawasa’s legacy. No wonder tomorrow you will find that he has changed his name to Tembo Shikapwasha or Banda Shikapwasha.”
He said Lt Gen Shikapwasha behaved the way works and supply minister Mike Mulongoti behaved when he commented on the controversial acquittal of former president Frederick Chiluba.
“Like the other time you remember Mulongoti confessed that the government acquitted Chiluba. Shikapwasha, while he was trying to be honest by saying ‘yes the government’, he was trying to justify [LITASCO),” Sata said.
He said Lt Gen Shikapwasha, in his media statement, failed to answer the questions that were being raised about the irregularities in the government’s plans to give a contract to LITASCO.
“When he condemned me, he said the whole Europe gets fuel from Russia. Now, the reason why Europe gets fuel from Russia is that Russia is nearer to where they are than the Middle East. But we in Africa we are much more nearer to the Middle East than Russia,” Sata said. “I am now glad that we are being proved right that corruption won’t take them anywhere.
This government must realise that it’s not only me and Hakainde who is talking about corruption; even the donor community is not very comfortable. The Irish Ambassador was advising Rupiah Banda yesterday Thursday and everybody continues reminding Rupiah Banda about corruption.
“Even the chiefs are coming out in the open to say how they are suffering. They want somebody to liberate them. Mr Rupiah Banda and people like Shikapwasha and Mulongoti should think twice.”
Sata urged Zambians to continue holding the government accountable on the crude oil import.
“We have to continue hitting them because if we don’t hit them we are the people who are going to suffer because we are the people who are going to pay more for the fuel which will be coming from wherever, taking into consideration transportation costs,” said Sata. “Because of his ignorance, unknowingly, Shikapwasha has come to confirm what I was saying about the LITASCO issue.”
On Wednesday, Lt Gen Shikapwasha defended LITASCO, saying it was not a conman company but a reputable one. This was after Sata said the government intends to corruptly award the tender to LITASCO, which is just a “conman company”.
However, Lt Gen Shikapwasha did not state whether or not it was true that the government was trying to use Zambia Public Procurement Authority (ZPPA) to rubber stamp the selection of LITASCO, which energy minister Kenneth Konga has allegedly negotiated with, as a preferred bidder to supply and delivery of 1.4 million metric tonnes of crude oil.
Well-placed government sources 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 eliminate competition and allow LITASCO to be awarded a contract because the company staff had met President Banda at State House in June where it was assured that it would be given the tender.
But due to public pressure, the Ministry of Energy has postponed the deadline for the tender process in the supply and delivery of crude oil for the 2010-2011 period, following The Post's expose’.
The source said the rescheduling was meant to give the government time to review the tender documents in an effort to address the issues that had been raised so far.
“Even then, we do not feel what the dates they are proposing will be sufficient,” the source said. “The rescheduling of the tender process is a welcome move although we are yet to see if they are going to attend to all the issues that you have exposed. And thanks to The Post otherwise President Banda could have quickly pushed for LITASCO if you did not expose this matter. But just continue on alert because these people, especially State House, are determined to give this tender to LITASCO.”
Ministry of Energy and Water Development permanent secretary Teddy Kasonso on Friday declined to comment on the crude oil importation.
“I don’t work for The Post. Let me work first. I am in a meeting. Call me later,” said Kasonso before cutting the phone line.
Labels: CORRUPTION, LITASCO, RONNIE SHIKAPWASHA, SATA, TENDER OFFERS
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Govt postpones tender process for supply, delivery of crude oil
By Chibaula Silwamba
Fri 04 Dec. 2009, 04:01 CAT
THE Ministry of Energy has postponed the deadline for the tender process in the supply and delivery of crude oil for the 2010-2011 period, following The Post's exposé of the government's manoeuvres to manipulate the process in favour of Russia's LITASCO.
And chief government spokesperson Lt Gen Ronnie Shikapwasha has defended LITASCO, saying it was not a conman company but a reputable one.
In an interview yesterday, Zambia Public Procurement Authority (ZPPA) director general Samuel Chibuye confirmed the rescheduling of the date for concluding the tender process.
“The ministry has requested for some adjustments because the PS new permanent secretary Teddy Kasonso needs to acquaint himself with the process so that a lot of things which will be done, he will be able to understand them. So there are some adjustments to the pre-bidding meeting and the closing date for the tender as a result of those issues,” Chibuye said.
“The new deadline is… In fact, we are trying to do some adverts, but currently the proposed date from the ministry is 31st December, 2009 and that is also subject to the bidders themselves saying 'is that okay with them or not'. So far that is the new date. Initially the deadline was 18th December, 2009. Now pre-bidding meeting is 18th December.”
However, Chibuye stressed that those dates would have to be agreed upon by all parties including the bidders.
“If they bidders accept that date, then it will be final but again depending on the issues that will be raised because the bidders might say, ‘it is Christmas time, it is holiday time, is it possible to extend?’ Again that has to be discussed with the ministry. Depending on how the ministry feels, how comfortable they are...” said Chibuye.
But when contacted earlier, in connection with the adjustments to the bidding process, Kasonso pleaded ignorance on the process.
“Bidding what?” Kasonso asked.
“I am in Livingstone. There is no confirmation to make. Go back to ZPPA.”
When reminded that Chibuye had referred the query to the Ministry of Energy, Kasonso said: “Anyway, I am in Livingstone, call me when I am in Lusaka tomorrow today.”
Well-placed sources disclosed that the Ministry of Energy had rescheduled the tender process as a result of the exposé in The Post about the government's intentions to unduly award the tender to LITASCO.
The source said the rescheduling was meant to give the government time to review the tender documents in an effort to address the issues that had been raised so far.
“Even then, we do not feel what the dates they are proposing will be sufficient,” the source said. “The rescheduling of the tender process is a welcome move although we are yet to see if they are going to attend to all the issues that you have exposed. And thanks to The Post otherwise President Banda could have quickly pushed for LITASCO if you did not expose this matter. But just continue on alert because these people, especially State House, are determined to give this tender to LITASCO.
“So you guys don't give up. Remember what happened last year? When you raised a lot of dust about Dalbit, the government withdrew just as they have done in this case. But when the dust settled and you guys stopped following up that matter, Dalbit was awarded the contract to supply finished products.”
Oppostion political party leaders that include PF's Michael Sata, UPND’s Hakainde Hichilema, FDD’s Edith Nawakwi and PF spokesperson Given Lubinda have condemned the government’s manoeuvres to manipulate the tender process in favour of LITASCO, which energy minister Kenneth Konga allegedly negotiated with.
But Lt Gen Shikapwasha denounced Sata for calling LITASCO a conman company. He said Sata’s accusation against the government of scheming to get kickbacks from LITASCO must be dismissed with the contempt it derseved.
“The statement is just a mere reflection of Mr Sata’s total ignorance of the oil industry. It shows how uninformed Mr Sata is about the major players in the oil industry. LITASCO, the company Mr Sata made reference to, is a reputable company, contrary to Mr Sata's lie that it is just a conman company.”
Labels: FUEL, LITASCO, OIL, TENDER OFFERS
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Rupiah’s inability to manage the country worries Nawakwi
By Chibaula Silwamba
Tue 01 Dec. 2009, 04:02 CAT
PRESIDENT Rupiah Banda and his government’s inability to manage the country is worrisome, FDD leader Edith Nawakwi said yesterday.
And a government source yesterday revealed that State House is fully behind LITASCO and that one of the immediate assignments for the newly-appointed energy permanent secretary Teddy Kasonso is to ensure that LITASCO is awarded the tender to supply commingled petroleum.
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 energy minister Kenneth Konga, had already selected 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, Nawakwi questioned the secrecy surrounding the purchase of crude oil.
“This inability of the government under Rupiah Banda to manage our country to the satisfaction of the Zambian people is worrisome. We, and many people, have said that the fuel shortage is artificial and I still emphasise that it is an artificial shortage. There is absolutely no way that the government could use the shutdown at Indeni as a reason for this shortage. Now as you can see, it is showing itself in the manner in which the government wants to procure feedstocks and products for this country. Ideally there should be transparency,” said Nawakwi, a one-time Minister of Energy.
“If the government wants to be respected and wants to eliminate suspicion, my suggestion is that they should do what other people have done in the past; invite the support of the World Bank to assist them with tender documentation and floating of these tenders. In many cases in a country like Zambia, if you procure your feedstock or products in a transparent manner, the World Bank can even refund you for the money which you are using because your argument will be that you are taking money from social services to finance an expensive product at the time when the world is facing a crisis.”
She said in 1996-97, the Zambian government would tender for oil procurement and thereafter take the invoices to the World Bank and the World Bank would give cash for what was spent.
“It’s called retroactive financing. You pay and you are reimbursed. But the World Bank can only do that if your tender procedures are above board, not under these arrangements where all of the sudden there is this one delivering maize, the next day you don’t know which face is dealing in oil,” said Nawakwi.
And senior government official yesterday revealed that State House’s hands were too deeply involved in the LITASCO transaction and ZPPA’s hands were tied because they are just receiving instructions.
“As you know, this company was introduced to President Rupiah Banda at State House around June and he committed himself to ensure that LITASCO is awarded the tender,” the source said.
“They all know that what they are doing is wrong and a lot of people have smelt corruption. That is why they want to justify this rotten deal that they want to by-pass the current supply IPG and go directly to LITASCO because IPG buys from LITASCO. That is a big lie. LITASCO’s own production is the type of crude called ural, which is only marketed in Europe. They do not produce any of the crude that Zambia needs. Their refineries also do not produce the type of Naptha and condensates that Zambia need. If you recall, LITASCO had to buy Naptha from Iran when they last supplied in 2007. The ship was stuck at Dar es salam for a long time and this cost Zambia millions of dollars in demurrage costs.
“LITASCO has to buy out all the products that Zambia needs from the gulf region where they do not produce anything so their claim that if they supply direct to Zambia they can be cheaper is absurd. LITASCO also bid for the supply of fuel under the last tender but lost the bid to IPG on account of pricing, among other reasons. The main reason why LITASCO is favoured this time is because of the interest that President Banda has in the matter. Let the President deny this point.”
Labels: EDITH NAWAKWI, LITASCO, RUPIAH BANDA, ZPPA
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Rupiah has a lot to learn
By Editor
Mon 30 Nov. 2009, 04:00 CAT
One of the tragedies of life is that people rarely learn from the mistakes of others.
It is often said that experience is the best teacher.
It seems humans want to commit their own mistakes before they learn. This is tragic. We say this because it will be so much easier if we could all learn from history and the mistakes of others and avoid doing the things that led to those mistakes.
Learning from the experiences of others is a much cheaper and better alternative to making the same costly mistakes. But learning from others requires humility and a correct assessment of oneself. Pompous people who are invariably dishonest are not able or willing to learn from the mistakes of others because they think they are clever and better than anybody else.
When Rupiah Banda became President, he had three previous presidents to learn from. Rupiah's predecessors had both positive and negative lessons to impart. Rupiah had a choice to make, he could either learn from the experiences of his predecessors and avoid some of the pitfalls into which they fell or chart his own course.
Rupiah has chosen to chart his own disastrous course, he is not prepared to learn from the mistakes of his predecessors. If anything, Rupiah is embracing some of the worst vices that characterised the presidency of Frederick Chiluba.
Chiluba's presidency has a lot of lessons for any leader who is determined to avoid the pitfalls and evil trappings of power.
Chiluba after having been handed a popular mandate chose to abuse public trust and gave in to a lot of excesses that come with power. Chiluba did not want to have anybody near him who criticised his leadership or worse still anyone who pointed out the shortcomings of his leadership style.
He purged the MMD and left himself surrounded by those who were prepared to tolerate his despotic rule unquestioningly. Unlike Rupiah who has to face an election in 24 months time, Chiluba had all the time to consolidate his hold on power and silence most of his critics. He managed but where did this lead him?
Chiluba did not have anyone close to him who could stop him from abusing his office when he was determined to do it.
He thought that there was no limit to what he could achieve because of the immense executive power that he wielded. By this time Chiluba had forgotten where the real power lay - with the people. To him his whims and personal preferences began to define the will of the people. Whatever he wanted was what was the will of the people. Arrogance and pomposity charecterised the way he dealt with public affairs.
Chiluba's unchallenged control over all state power and institutions led him to commit one crime after another. It is the excessive hegemony over power that Chiluba enjoyed that led him to steal and abuse public resources.
His personal wishes and desires were called matters of state security upon which public resources could be spent without any restraint. This explains why millions of dollars of public funds were spent on his suits and other articles of clothing. There were no boundaries in the way that Chiluba operated - party matters and state matters were mixed deliberately to facilitate the abuse of public resources.
Public resources were routinely commandeered under the pretext of funding the MMD party political activities when, in fact, Chiluba and his tandem of thieves were busy lining their pockets with public funds. Corruption amongst the higher echelons of public servants was an acceptable form of income supplementation. They could steal and abuse public resources without fearing any legal consequences. Impunity defined the way they ran public affairs. Chiluba was very sure that there would never be a day of reckoning. He did not even bother to do anything to hide his excesses; after all, he was the president.
Contrary to what Chiluba thought, a day of reckoning did come - the will of the people triumphed. Chiluba has been prosecuted for his abuses and many in his tandem of thieves have been convicted.
It is this Chiluba that Rupiah has called a damn good president and gone on to befriend. Rupiah is entitled to choose his own friends but as head of state his choices speak volumes about his character and the way he is running the affairs of the country.
We are not surprised that some of the same noises and allegations of corruption and abuse of public resources that characterised Chiluba's presidency have made a very strong come-back since Rupiah came to power. The same stubborn preparedness to ignore the public that characterised Chiluba is evident in Rupiah. Obviously, Rupiah seems to have learnt some lessons from Chiluba but not very good ones.
This is why the number of scandals that have rocked Rupiah's presidency does not seem to be diminishing; if anything they are on the increase. Many of our people remember that Chiluba started running important economic affairs from State House to the exclusion of state systems that are designed to protect public resources. Those closest to Chiluba became the controllers of all the major decisions about any meaningful public procurements. It is this abuse of power that landed Chiluba in the mess that he is in today.
One would have thought that Rupiah would avoid this pitfall.
But Rupiah has gone a step further, and his family seems intent on benefiting from his tenure as President in every way possible. We doubt whether the civil servants and other public officials who are responsible for public procurements are in a position to make any important decision without the interference of Rupiah and his family.
This state of affairs calls for vigilance amongst all the public officers who are working with Rupiah. They need to ensure that they do correct things and not allow themselves to be sucked into any illegal arrangements. There is need for these friends of ours to learn from the experience of those who worked for Chiluba.
Many of them have been paraded in our courts because of the illegal things they did when they worked for Chiluba. When the day of reckoning comes, it is each one for himself. The people who may have been giving you the instructions to do wrong things will refuse to take responsibility.
This is what has happened with Chiluba and his tandem of thieves. A lot of these people decided to abuse their positions because their boss was abusing his position. But where has that left them today? We know for a fact that some of them deeply regret the things they did against our people whilst working with Chiluba and have come to despise the very man they once considered a hero.
The experience of the Chiluba technocrats should serve as a warning to our friends who have accepted jobs in Rupiah's government. The only safeguard they have is to do the right things. We are not naïve we know that it is difficult for many of these people who work for Rupiah to challenge their appointing authority. Challenging Rupiah or even telling him that something cannot be done because it is wrong may mean losing a job.
We know that some people have already lost jobs for no other reason except trying to do what is right in a government that demands total obedience to instructions whatever they might be.
Losing a job can be a devastating experience. But going to jail because one feared losing a job is even more devastating. It is better to lose a job and pick up the pieces of one’s life thereafter than to do things that could land one in jail simply to keep a job that you could even lose anyway.
We know that many of our people who are working in the public service are working in fear. We feel sorry for our country men and women who have the misfortune of working in the Zambia Public Procurement Authority (ZPPA).
Things must really be tough. It is not easy to work for a government and a president who seems determined to have a hand in every meaningful procurement - their jobs must hang on a very thin thread - they could be fired anytime.
If Rupiah had learnt anything from Chiluba, he would have done everything possible to distance himself and his family from government business. But this does not seem to be the case. Rupiah believes that his family has a right to be involved in government business whilst he is President.
Which public officer is going to deny the president's son a right to government business knowing that the father supports their involvement in business with government? The position Rupiah has taken has opened him to the abuse of the authority of his office, which will land him in trouble.
We know for a fact Rupiah has been facilitating business transactions between government and some of his friends. It is not long ago when we reported that the people who were involved in a tender to supply oil to Zambia were being facilitated by State House and VIP government transport was made available to them when they were in the country to negotiate the deal.
We also know of the LITASCO oil transaction where it seems tender processes are being rigged to favour this company. Rupiah will do well to reflect and stop looking at government as a source of business whilst he is President or else he will land himself in more trouble than even Chiluba did. Rupiah must learn lessons from the mistakes and crimes of Chiluba.
Labels: LITASCO, RUPIAH BANDA
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Lubinda queries Rupiah’s involvement in oil deal
By Chibaula Silwamba
Sat 28 Nov. 2009, 04:01 CAT
PF spokesperson Given Lubinda yesterday charged that President Rupiah Banda has turned State House into the centre of procurement negotiations like crude oil tender the government wants given to Russia’s LITASCO.
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 energy minister Kenneth 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, Lubinda advised everyone involved in this procurement to come out clean.
He also challenged the ZPPA to publish the conditions of the tender to allow all competitors to compete on an even footing without exchanging things midnight to suit the government’s preferred bidder.
“The problem we have is that Mr Rupiah Banda has turned State House into the centre of all procurement. Mr Rupiah Banda has reduced himself from being State President to being chief negotiator for contracts,” Lubinda said.
“That is why you see many people trooping to State House to go and fix and mix and whisky the contracts such as the one we are talking about. What ZPPA are saying that they can vary the conditions of tender during the process of tendering is nothing but just a pack of falsehoods.”
Lubinda said in this particular case, he had no doubt that ZPPA wanted the tender process to favour LITASCO.
“I want to challenge those who are in Parliament who are involved in this; we know that there is one or two individuals working with their friend … and we know that person to be known as chief rigger. When this man is involved in anything, it is because he is thinking about how to perpetuate his stay in politics,” said Lubinda.
“Therefore, I have no doubt that they are doing this with the intention of mobilising resources in preparation for the 2011 elections. This is just an MMD fundraising oil venture but the Zambian people must stop Rupiah Banda and MMD from doing that.”
A well-placed government source revealed that President Banda, using Konga, is determined to award the bid to LITASCO because he started discussions with them around June.
Another government source said 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.
But ZPPA director general Samuel Chibuye said making changes to the tender document is a normal procedure.
Chibuye said ZPPA had received 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.
Labels: GIVEN LUBINDA, KENNETH KONGA, LITASCO, OIL, PROCUREMENT SYSTEMS, ZPPA
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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
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Govt wants to change crude oil suppliers
By Kabanda Chulu and Chibaula Silwamba
Thu 26 Nov. 2009, 04:01 CAT
GOVERNMENT is intending to use the Zambia Public Procurement Authority (ZPPA) in a bid-rigging exercise for the supply and delivery of 1.4 million metric tonnes of crude oil in favour of a Russian company which energy minister Kenneth Konga has allegedly negotiated with.
But ZPPA director general Samuel Chibuye on Monday said making changes to the tender document is a normal procedure.
Well-placed government sources revealed that the US $1.4 billion two-year contract to supply and deliver 1,440,000 metric tonnes of comingled petroleum feedstock would not be transparent because the government, through Konga, has already selected Lukoil International Trading and Supply Company (LITASCO) as a preferred bidder hence the ongoing bidding process being done by the ZPPA would just be a rubber stamp procedure.
The sources disclosed 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.
“Last 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.”
Konga could not be reached for comment because he is reportedly out of the country on a private visit to India and United Arab Emirates.
The two-year contract to supply and deliver comingled petroleum feedstock was awarded to the Independent Petroleum Group (IPG) of Kuwait but is coming to an end next month, hence the need to invite expressions of interest to all prospective bidders. LITASCO participated in the last bid but lost to IPG.
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 eliminate competition.
“This is meant to source a preferred supplier of feedstock, in this case 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 Chibuye on Monday 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.”
Asked about the concerns on the four changes and after the four amended conditions were read to him, Chibuye responded: “Correct! That is what I am saying. We have received letters from other bidders who are saying those conditions are too onerous, they conditions will be too difficult for some of them. So we are trying to level the playing field. That is what they requested and we have no problems with that.”
He, however, said ZPPA had to involve the Ministry of Energy and Water Development in revising the conditions.
“We can't do it on our own, we have to liaise with the users which are the ministry so that at the end of the day we agree on the level that we are going to use. If they are too onerous, obviously we have to take that into account,” Chibuye explained. “Sometimes we are accused of giving business to smalltownfields, so it's a delicate balancing act. Where do you draw the line? So those are the issues we are discussing with the ministry right now.”
Asked about the concern that the tender document was amended to include the four conditions aimed at disadvantaging other bidders to pave way for LITASCO to get the contract, Chibuye said that was not true.
“No! No! That is not the issue because usually what should happen is this that the bidders, what has happened is exactly what is the normal process. When the bidder buys the document, in fact, they are free to inspect the document before they buy but even when they buy, it's a bulky document. Some of them don't have the time or the expertise to inspect but when they came across those issues they raise them with both us and as well as the ministry. Our duty is to consider those. We don't normally waive them off and say, 'look! We can't change.' Those are not cast in stones,” Chibuye said. “So we are within the period within which those changes or those communications with the bidders can be made and that is what we are doing right now.”
Asked about State House's alleged links to LITASCO and its suspected efforts to influence the tender procedures, Chibuye said he did not know anything about that.
“I don't know. No! No! At the end of the day what we want to do is transparent and credible tender process,” said Chibuye. “At the end of the day, people will be able to see and that is why we are saying when people complain, our job is to listen and see if those complaints are genuine and if they are, then we make the changes as necessary and that is
Labels: FUEL, KENNETH KONGA, LITASCO, OIL, OMCs, PROCUREMENT SYSTEMS, ZPPA
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