ACC takes keen interest into multimillion Dollar contract awarded to minister’s ‘friend’

By Patson Chilemba 

The Anti-Corruption Commission (ACC) says it has taken keen interest into the matter where Agro-Fuels, a company whose owner Sashi Patel, is said to be friends with Energy minister Peter Kapala, was awarded a multimillion Dollar contract for the supply of petroleum products.

Impeccable sources have told Daily Revelation that the Energy permanent secretary chaired TAZAMA awarded the contract to Agro-Fuels for the cleaning services and transporting low sulfur diesel when the country was transitioning to transporting diesel through the TAZAMA Pipeline.

Energy permanent secretary (Technical) has not responded to assertions that the contract was awarded without the board’s approval, three days after Daily Revelation started making efforts for her to respond.

Usually her

 lines goes unanswered, and the only time she picked up the call, she indicated she was in a meeting and would revert after that. The other time the call was answered was when someone, possibly her aide picked up, and said he would mention to his boss to call after she had done with the meeting, but nothing has come forth just yet.

There have been reports that the ACC was looking into the matter, and when they were gotten in touch with said they had taken keen interest into it.

“I wish to acknowledge receipt of your press query dated 4th October, 2023 in which you wanted to find out whether the Anti-Corruption Commission is investigating alleged irregular awarding of contract for the supply of diesel and cleaning of the TAZAMA pipeline to Agro Fuels, by the Ministry of Energy,” ACC head of corporate communication Timothy Moono stated. “In response to your query. I wish to state that the Commission is currently not investigating this matter but has taken keen interest in the matter. I thank you for your inquiry on this matter.”

The TAZAMA Board is chaired by Energy permanent secretary (Technical) Himba Cheelo.

Questions are being raised on how the company was ‘single-sourced’ to carry out the works without the knowledge of the board which should have sat to decide on the matter as per procedure.

“Complaints are also coming through other oil marketing companies like Total and Engene on how the contract ended up in the hands of Patel, given his close links with the minister,” one of the sources familiar with the matter told Daily Revelation.

This is one matter, activist Brebner Changala recently commented on, challenging the Anti-Corruption Commission to be transparent by disclosing the investigations against Agro-Fuel, a company that was running Indeni.

“Can the Anti-Corruption Commission deny or confirm whether Agro-Fuel company is being investigated on the $100 million allegations over the transportation of crude oil between TAZAMA and Indeni Pipe Line. We want to know if there are any investigations in that regard,” Changala demanded.

Daily Revelation a few days ago spoke with Energy minister, Peter Kapala, who argued that the contract was tendered for, but when asked about the board not approving of the award, said he was not into micromanaging to find out whether the board sat to approve the contract.

Asked on information that he was friends with Patel, Kapala argued that he would rather the investigation is done before commenting.

“You see what I mean? Because I am close to all oil marketing companies, so I don’t know how close is close. You see what I mean? If I may put it that way. And you see it was a tender. It was I think four, five companies tendered. They settled for Agro-Fuel to supply the product,” Kapala said. “The cleaning was done by ourselves TAZAMA. So if there is an investigation going on, so let’s just wait for the investigation to be concluded, otherwise we are going to prejudice the outcome.”

Asked on information that there was no board meeting to decide on getting Agro-Fuels over this same contracts, Kapala said: “If I will be doing operational things in TAZAMA, Indeni, Zesco, those are operational issues. For us we provide the guidance, the policy that listen now ‘let’s do this’. I am not going to be asking them ‘oh, did the board approve? Oh, did the board sit? Oh where was the board? Let’s have the minutes.’ That’s micromanaging. We drive the policy. So if there is an investigation we welcome it so that everybody is in the clear.”

“I couldn’t say more because of the investigation. We can come and discuss once the investigation is done. So who is carrying out the investigation?” said Kapala.

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