THREE companies with highest political connections have corruptly been  awarded the tender to procure oil for Zambia without following normal tender procedures, making the current evaluation process expected to be held this month as mare formality. One of the companies was introduced by the son of a leader; another was brought and introduced by a well known businessman in the Banking sector.According to Investigations, the tender of oil supply attracted 15 companies and 14 qualified after one supplier was disqualified on the
basis of late delivery of bid submission, but three companies represented by powerful political interests including one notorious banker who funded the PF elections campaign have eportedly been awarded the contract. Three big companies Dunvor of Switzerland, Dalbit of Kenya and Glencore of United Kingdom are among the bidders for the contract of
the supply of oil. One company is alleged to have promised government a saving of US$40
million which offer has been accepted and is being worked into the persuasion process.Competitors have questioned the morality behind the offer to
government, saying the oil company was not being genuine in the manner it was conducting its business using patronage formulas.Competitors say the trading company had no control of oil prices on the international market and could not determine and fix oil which wascontrolled by OPEC. The source also revealed that another company which did not bid for
comingled feedstock oil which was a bid requirement also known a Murban Crude as per requirement had successfully been shortlisted tobe among the three possible suppliers for th period 2012-2014. The sources who attended the tender opening on 23 March, said some of the prominent bidders which included a company that had previously been single sourced tendered for diesel as a finished product at US$1,191.20 per metric tonnes and petrol at US$1,372.46, with other companies not offered the same condition. Other companies that have tendered, Agipol Africa quoted diesel at US$1, 261.01 and petrol at US$1, 367.45, Addax Oryxl tendered for
diesel at US$1, 252.49 and petrol at US$1, 468.56. Trafigula tendered for diesel at US$1,304.70 and petrol at US$1,418.56, IPG tendered for diesel at US $1, 420.66 and petrol at US $1, 554.71 and Kenol Kobil tendered for diesel at US$1, 294.53 and petrol at US $1, 416.87. A technical analysis of the bids is to be conducted before considering the financial proposals, and that according to the evaluation criteria, the bidder with the lowest price at the financial evaluation stage would be considered the most responsive. The sources said all companies were required to bid in all the option or categories as required by the law but three foreign companies selectively chose not to and offered the PF government US$40 million.  “This company claims that the Zambian government will be able to save
money if the tender was offered to them, just because they are being
aided by senior PF officials who traveled to Switzerland early this
year. That cannot happen because they don’t control the prevailing
market prices,” said the source.
The source explained that, for a price evaluation based on using option two of the feedstock combination – 65 per cent Murban Crude and 26 per cent Gasoil and nine per cent Naphtha, the three other companies would have been disqualified. “Having seen the list of successful bidders, to our disappointment, we have also noticed that a United Kingdom oil company has joined in the
bid by some businessman from the Banking and Financial Sector. This is the company which was awarded a controversial energy bid under the Mwanawasa regime through a named businessman,” said the source.
The source said some companies set to be evaluated had created tensionin Bolivia and Iran as a result of their conduct in the supply of oil.
But government through its Minister of Energy Christopher Yaluma have expressed ignorance interfering in bids and tender procedures sayingthe whole process was still under scrutiny by the Zambia Public Procurement Authority (ZPPA) before being handed to his ministry.

This has forced stakeholders in the oil procurement industry to make a passionate appeal to the Zambia Public Procurement Authority (ZPPA) to seriously scrutinize companies bidding for the same tender to avoid corruption practices which have already emerged.

Mercuria, Gunvor, Glencore, Crown Well, Dalbit and Kenol Kobil oil companies have been shortlisted for the evaluation to supply 1 440 000
metric tonnes of oil for the period of 2 years. The rest of the list of companies consists of Trafigura, Addax Energy, VITOL, IPG and Agipol Africa Ltd.

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