Trafigura reacts to accusations on oil supply to Zambia

Trafigura says it is honouring its part of the deal to supply oil to Zambia but there are certain elements within the oil industry involved in underhand methods and direct theft.

A private investigation has revealed that Trafigura was awarded (pursuant to an open tender) on the 28th August 2012 the contract to supply Diesel and Petrol but that another firm called DALBIT continues to make supplies to this day?  What is Delbit and who owns and why has it continued to supply oil despite the contact being given to Trafigura?

Data provided show that when Trafigura started the supply in early September 2012, Diesel stock in Zambia was 6 days, and Petrol stock was 21 days of the National consumption.

On December 2102, The  Zambia Ministry of Energy did not open the requested Letter of Credit.  Trafigura agreed to discharge    5,000,000 litres of Diesel (Approx  5m$)  without  any  financial  security, according to papers given to the Watchdog.

On March 2013 , Trafigura again  discharged  worth  of 13,000,000 litres of Diesel  during 3 weeks  ( approx. 13m$)  without  any  Letter of Credit.

After 3 weeks of discharge without any Letter of Credit, Trafigura withheld discharging at Ndola Fuel Terminal for 10 days until it had the Letter of Credit in place.

The contract terms stipulated that, the Letter of Credit must be open prior to the vessel discharging in Dar Es Salam but this was not the case.

Since March, the Diesel Stocks are constantly growing up to 23-24 days of the national Diesel consumption.

PETROL

A Trafigura official explained that the Trafigura contract was for only 21,230,000 litres of Petrol in August 2012, This  quantity  had been  supplied from September to  October 2012 . Then Trafigura did not supply Petrol between November 2012 until March 2013.

In February 2013, The Ministry of Energy amended the supply  contract  by adding 106,400,000  litres of Petrol .

From March 2013, Trafigura resumed discharging Gasoline.

Stocks increased during that period from 21 days to 28  days  of the National  Petrol  consumption.

Logistics:

Trafigura agreed to  supply directly Lusaka OMC facility  in order to  facilitate the overall  logistics, increase stocks, avoid backlog in Ndola Indeni Refinery.

Dar Es Salaam Specification is 91 RON , ( while the Zambia supply contract in 95 RON ), this required  a dedicated  petrol storage  facility  which is not  available in Tanzania.

In order to comply with this requirement, Trafigura  dedicated 2 segregated tanks in Beira Mozambique in order to fulfil the Zambian specification in Petrol.

TRAFIGURA used OVER 31% (depending on the monthly volume supplied) of Zambian registered trucks.

Trafigura hired a SPECIAL DEDICATED team of Zambians between Ndola and Lusaka to perform  this contract and a team  to operate from South Africa and Tanzania.

The average price of the Trafigura contract is $1.09 (USD) per litre delivered to Ndola. The pump price is made up of the imported price + local price structure elements covering transport from Ndola to destinations, taxes, retailer margins etc., paid to various service providers and the revenue authority determined by the Energy Regulation Board.

Let us now refer to the press article of the Times of Zambia by Munabeza Muwanei – The Times of Zambia Reported that:

Four trucks loaded with 38,000 litres of unleaded petrol were presented at Indeni Refinery. After the analysis of the product and the compulsory weighting of the trucks, they discharged only 50% of their volume at Indeni Refinery and left without further weighting. How long has this been going for?

Police arrested the four trucks and realised that they contained 50% of the fuel although all the documents showed that they were empty. The four Dalbit drivers have been arrested and three workers from Indeni Refinery suspended.

PEOPLE INVOLVED FROM INDENI –

Lamson Kabalu – Indeni – Weight Bridge Operator

James Phiri – Indeni – Weight Bridge Operator

Jonathan Muleya – Indeni – Weight Bridge Operator

TRUCKS INVOLVED –

T192 CJQ/T330/CJX – Dalbit Petroleum

T241 CJQ/T264/CJX  – Dalbit Petroleum

T721 CJQ/T311CJX –  Dalbit Petroleum

T237AHC/T243/AHC – Dalbit Petroleum

Dalbit is a mere trading company but who are behind them building a storage facility in Lusaka purportedly for the Government. Who awarded them the contract of a bitumen unit at Indeni?

Let the people know the truth of this and other related matters before making false, malicious and libellous allegations through a tabloid which is known to be subsidised by anti-PF elements and culprits with vested interests. Know the truth about the conglomerate Trafigura, visit their web sites and compare all their contenders but satisfy yourself only with the truth!!

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