By Esther Chisola
Energy Minister Peter Kapala says he will only stop awarding contracts for supply of petroleum products when the tender comes into effect.
And the minister has urged the media to visit his office to check the records at the ministry in order to dispute corruption allegations levelled against him by Oil Marketing Companies President Dr Kafula Mubanga.
Speaking at a media briefing in Lusaka, the minister said Dr Mubanga’s allegations were based on his own opinions.
“That is an opinion of Dr Kafula Mubanga. However, in order to address this issue once and for all, we are inviting the press again to come to our office on Friday to address all issues connected to the allocation, what we call nomination of companies that are to supply diesel through the pipe line. Let me make it very clear, government has disengaged from procuring petroleum products. So, there is this misconception that the ministry is giving contracts to supply the country. There are two systems of supplying diesel, some of the diesel which is about 20-25 percent is coming by road. There is no noise coming out of that. The bulk of the diesel is coming through the pipe line, that is where we nominate you an individual company to come and say okay, can you meet this price,” he said.
The minister further disclosed that Zambia is among least country’s that has cheaper diesel.
“We are asking companies, the companies that we are giving now nominations have quoted below the ERB price because we want to bring the price down. That is why when you compare in the region, you will find that Zambia’s diesel is the cheapest. In all other countries you will see that diesel is usually more expensive than in Zambia but we are utilizing the pipe lines. I repeat, government has disengaged from procuring of petrol and diesel kerosene jet A1. This is a private lead entity. So, the arguments will come on the use of the pipe line where government is making money. So, we invite you to come to the office and we will give you the companies that we have allocated portions of the pipe line to use so that they can (show) their product, they sell, they make their money and government collects their taxes that’s how it is,” he added.
He said government gave nominated companies to deliver their products in a period of one month, and their failure could be blamed on government.
“So, Friday, 14 hours you come to the ministry so that we can even give you the names of the companies that we have given. Some have delivered, some have failed to deliver. So, you will find that the ones that have failed to deliver are the ones who have gone to Dr Kafula to complain that we are not being fair. So, come, we give you the names, we go and verify with those companies. Those who have failed, what was the reason for them failing? Because we normally give one month. So if you fail to deliver, or you fail to dock your ship, it has nothing to do with government because government cannot get involved because once we get involved even finding you a slot for the ship to dock, then you are not fit to be in that business,” Kapala said.
The minister however disclosed that in the meantime, he is the one that nominates the companies and he will only stop doing so once the tender kicks in.
“So, we have disengaged, for now until the tender kicks in. There is a tender that should be awarded very soon, then the Ministry, this one, the one who is accused will stop giving these nominations. If you come to our office, they would be four, five more companies that are waiting to be allocated. Anybody who comes even among yourselves, get organized, as long as you have got the money to bring in let’s say 20 thousand metric tons of diesel through the pipe line, 50 thousand, 100 thousand, if you have got the money, fine, come we will give you. So that it is as open as it can be,” he said. “But when the tender kicks in, the minister will have no power anymore to give allocation to companies. We are just doing this as an adhock because we cannot leave the pipe line dead while waiting for the tender process to kick in. once the tender process kicks in, it is an open access, the PS alluded it to, then TAZAMA will be running with the tenders. By then, I will sit back and watch and will just drive policy to make sure that it is fair game to everybody. So, when the tenders happen, please find time to go to TAZAMA and see how they handle the tender process so that it is as open as possible. We have discussed this with the MOCs in the country, they are happy with what we are doing and the way forward.”
