Friday, October 19, 2007

Catholics,TIZ question Levy's involvement in procurement of crude oil

Catholics,TIZ question Levy's involvement in procurement of crude oil
By Staff reporters
Friday October 19, 2007 [04:00]

The Catholic Church and Transparency International Zambia have taken issue with President Mwanawasa's involvement in the procurement of crude oil. Reacting to the disclosure by President Mwanawasa that he was involved in resolving the fuel crisis that rocked the country in recent weeks, Caritas Zambia (formerly Catholic Centre for Justice, Development and Peace) director Sam Mulafulafu said President Mwanawasa was setting a dangerous precedent, which could lead to corruption. And TIZ president Reuben Lifuka challenged President Levy Mwanawasa to explain why the government opted for a single sourcing of fuel.

During a press briefing at State House on Tuesday, President Mwanawasa announced that the government had received an offer from a named bank that was prepared to finance one ship of crude oil but the persons who were responsible declined to deal with the bank and they wanted the Tender Board of Zambia to advertise the tenders for the people to import oil to Zambia.

Mulafulafu said it was not right for State House to be involved in business dealings with business persons.

“I agree that poor management of fuel flow in the country is harmful to the economy and livelihoods in general and those charged with this responsibility should be on top of things, otherwise they become irrelevant in their jobs,” Mulafulafu said.

“What I take issue with is the interference in the procurement procedures by the President even if, as he claims, it was meant to resolve the vexing fuel shortage problem.”

Mulafulafu said Ministry of Energy Permanent Secretary Buleti Nsemukila was right in insisting that the procurement be done through the public tender.

“Aren’t these our own financial and procurement rules? Where in the public procurement rules and procedures does it say that a prospective supplier can just go to the state President and cut a business deal?” Mulafulafu asked.

“I think we have gone through this before with the previous regimes and that is why we are where we are now with corruption. A government and leadership that claims high moral ground on issues of corruption cannot encourage business people to be dealing with State House whenever they want to do business with government.”

Mulafulafu said President Mwanawasa’s decision to replace Nsemukila with Peter Mumba, whom he described as a close relative of the President, raised a lot of questions.

“What is this intended to imply?” he asked.

And when addressing trainee journalists at Post Newspapers head office on Wednesday, Lifuka contended that there could have been other banks that would have offered to procure fuel at a more competitive rate.

“I don’t know how many of you (journalists) took an interest when the President yesterday (Tuesday) said that an American bank offered to buy oil on our behalf. How many of you took an interest to find out, say, at what cost and is it comparable with what another company would offer? And if the price they are offering for procuring the oil is comparable, how did government settle for only one buyer?” Lifuka questioned.

He said such type of arrangement of the procurement mechanism raised a lot of suspicion as to how government procures some of the services and goods as well as single sourcing.

“Unless you have very good reasons on why government opted for a single sourcing, such deals can be a conduit for corruption. There is no need for single sourcing of such huge government contracts unless there’s good justification,” he said.

Lifuka reasoned that even with the Zambia National Tender Board Act (ZNTB), one was required to get permission from the ZNTB if one opted for a single sourcing.

“The question is; did the Ministry of Energy and Water Development get authorisation from the tender board to go for a single sourcing or was it because someone was told to get out of my office? President Mwanawasa needs to explain why government opted for single sourcing. We need to be provided with information and full disclosure on what is contained in the contract,” he urged.

Lifuka said the information on what led to fuel shortage was being given in drips because there was a lot more happening behind the scenes. He said the scant explanation, President Mwanawasa gave on what led to the fuel shortage showed that the government lacked leadership.

“We should not allow the levels of desperation to violate the law and the lack of planning on the procurement procedure which could set a precedence,” he cautioned.

And Lifuka maintained that government has not made strides in the fight against corruption. He said there were so many issues that the government was supposed to put in place before condemning the TIZ Corruption Perception Index CPI.

“The CPI is not compiled by the TIZ, it is compiled by different people and organisations including government officials, the media should interpret these documents,” Lifuka said.

“Let government communicate to us what it has done in the fight against corruption. Let them show proof that they have made strides in this fight.”

He said the Task Force on Corruption had a narrow scope of work because it only focused on the ten years of Chiluba’s government.

“Who will investigate the corruption of Mwanawasa’s ten year rule? What came out of the evaluation of the Task Force funded by the British government has not been disclosed. The Task Force has not performed as per expectation and there’s need for a specialised unit to fight corruption because it has a new dimension.”

He wondered which organ would take up the cases that the Task Force was investigating if Cabinet decided to do away with the Task Force.

“There’s need to intensify the capacity of the Anti Corruption Commission if they are able to handle high-level corruption or come up with a specialised unit like the SITET in the UNIP government,” he said.

He also observed that the country had no anti-corruption policy and lacked an action plan on corruption.

Lifuka said the government should come up with a mechanism to provide checks and balances in the contraction on loans and tenders.

“In the Mwanawasa government that is fighting corruption, no law has been put in place to fight corruption. All the laws on corruption are porous and are hanging. For example, the law does not empower ZNTB to blacklist a company that is found wanting,” Lifuka said.

He said the President had excessive powers that could dilute the separation of powers.

“The problem of vesting more powers into one person is that there is propensity for abuse President Mwanawasa is not telling Zambian why he needs more powers. As far as we are concerned, he has excessive powers such that he appoints almost everyone which in turn dilutes the separation of powers,” Lifuka said.

Lifuka said there was need to enact the freedom of information Bill as it would help curb corruption. He said the TIZ would not participate in the NCC because it was providing space for “arrogance of numbers”.

Lifuka said the government should show goodwill in the constitution-making process.
And Mulafulafu said it was strange for President Mwanawasa to insist that his threats to arrest all those daring government on the National Constitutional Conference (NCC) were backed by law because his home affairs minister Lt General Ronnie Shikapwasha, information minister Mike Mulongoti and Attorney General Mumba Malila defended him, saying his statement was misunderstood by some critics.

“Despite the fact that the remarks were heard and seen by all who watched the news clip on his arrival, Malila, Shikapwasha and Mulongoti, in their routine insult to the intelligence of the Zambia people, went on to insist that those who were raising issue with President Mwanawasa on those remarks misunderstood what he said. I suggest therefore, that these three Honourable men join the Archbishop in the presidential tuition class because, according to the President, they do not seem to understand the Penal Code (Cap 87) as quoted by the President,” he said.

On President Mwanawasa’s intention to meet MMD national executive committee over the selection of his successor, Mulafulafu said President Mwanawasa’s move was a repeat of former president Frederick Chiluba’s. He said it was not for President Mwanawasa to anoint his successor because his successor should come out of an uncoerced and unfettered democratic process.

“This paternalistic and know-it-all approach to issues that need genuine consensus has negative consequences on Zambia’s political maturity and development,” Mulafulafu said.

“Today we have most of heads of our political parties either self-proclaimed or anointed by their predecessors and this culture and mentality is carried even in the structures and processes of national governance when such parties are given an opportunity to govern.”

President Mwanawasa said there was no excuse he could give on behalf of the government over the recent fuel shortages in the country. He said his threats that those daring his government over the NCC risked being arrested for treason were not a laughable matter because they were backed by the law.

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