Transparency International Zambia has taken time to study the expose in the Post Newspaper of the manuvres by Government through the Ministry of Energy and Water Development to bid rig and facilitate the award of contract to the Russian entity LITASCO at the expense of an open and transparent tender process. We find it unfortunate that the procurement process for supply of petroleum products to Zambia has in recent times being shrouded in controversy. We have previously registered concern at Government’s propensity to single source or even tailor public tenders in order to suit preferred bidders. It cannot be denied that such preferred bidders are not necessarily the best or cheapest but they are provided an opportunity to do business with Government for some immediate or later day benefits.  In the case of the LITASCO – it is extremely sad that an international company of its standing is allegedly involved in unethical business conduct and we are sure that as LITASCO SA  is fully aware of steps being taken by the Organisation for Economic Co-operation and Development (OECD) through the OECD Convention on Bribery of Foreign Public Officials in International Business Transactions (OECD Convention) to address the supply side of bribery and essentially criminalise the bribery of foreign public officials in international business transactions. It is puzzling therefore that an international company like LITASCO is allegedly prepared to overlook minimum standards of integrity associated with International Competitive Bidding processes.

Coming to Hon. Kenneth Konga- we are sure that he is fully aware of the conduct expected of a Cabinet Minister or any public official for that matter. Unfortunately, we find his explanation for bid rigging totally inadequate - if anything, he deliberately fails to answer the question why he as Minister took particular interest in this procurement. He further does not explain whether it is the duty of the Minister to convey tender documents to would be bidders for their comments as he suggests. And lastly, the Hon Minister, would have been more credible in his explanation by providing details of the tender numbers of the two tender documents he is claiming to be public documents. Hon. Konga is a lawmaker and just in case he has forgotten the provisions of the Public Procurement Act of 2008, we wish to remind him and those he is working with that Section 40 (1) that states, “  A public officer shall keep confidential the information that comes into the public officer’s possession relating to procurement proceedings and to bids, including any bidder’s proprietary information.

Section 40 (2) (a) (d) further provides that , “Without prejudice to the generality of subsection (1), a procuring entity shall not, except where required to do so by an order of court, disclose any information relating to procurement proceedings and bids where the disclosure would amount to a contravention of the law; and inhibit fair competition in public procurement .” It is our considered view that Mr. Konga’s alleged behaviour is in contravention of the law through his alleged engagement with LITASCO and therefore could be liable for prosecutions in the court of law.

Related to this, therefore, is Section 74 (1) (b) which provides that , “ A bidder or supplier participating in public procurement shall -not commit or abet corrupt, fraudulent, collusive or coercive practices,” The alleged revelations suggesting that LITASCO was in close contact  with Mr. Konga may be considered an act of fraud or of using coercive practices in order to remain the only preferred bidder.

Transparency International Zambia demands that President Rupiah Banda should take responsibility for this issue and provide a clear explanation to the Zambian people on what is happening in the oil procurement and whether he did in fact give assurances to LITASCO as alleged that they will be awarded the contract to supply oil to Zambia. Secondly, we demand that a comprehensive investigation be undertaken and we challenge the Anti-Corruption Commission and other investigative wings to rise to the challenge and follow this issue to its logical conclusion. Thirdly, we ask the Zambia Competition Commission to take interest in this matter because the attempts at bid rigging are meant to inhibit fair competition. Fourthly, we demand that all those that are found wanting should be prosecuted to the full extent of law and without consideration of their political standing. Fifthly, we demand that a transparent mechanism be put in place in terms of selecting a contractor to supply oil and all those companies that have used underhand methods including bid rigging- should be debarred from participating in this tender process.

In the meantime, Transparency International Zambia has issued an international alert to its sister chapters in Russia, Europe and United States to follow the actions of LITASCO closely and we will initiate an international campaign against LITASCO if these allegations prove to be true. For Hon. Konga, we will firstly give an opportunity to the ACC to do its work and for President Banda to take action against him if this is necessary but we will follow this case keenly and if need be, we will consider other legal options to address these allegations of impropriety..

Ronald Mwelwa Tembo
Information and Communication Officer
On Behalf of Transparency International Zambia