Word for word: what Trafigura told Daily Nation newspaper

Word for word: what Trafigura told Daily Nation newspaper

29th April 2015

Mr. Richard SakalaPuma_Energy_loading_rack

Daily Nation

Lusaka

Dear Sir,

Re: PRESS QUERRY REGARDING TRAFIGURA OIL CONTRACT

We refer to the above and confirm that we act for Trafigura, who have handed us your press query with instructions to respond.

We propose to respond in the same order the issues are raised in your query.

  1. Preamble

Your preamble states as follows:

 

“Subject: Trafigura US$28 million oil contract

Corruption allegations have been raised against Trafigura, the company that has been supplying petroleum products to Zambia for the last three years and has been accused of using former president Michael Sata’s death to syphon money from the Zambia’s treasury.

In 2012, Zambia lost about US$300 million when Trafigura was awarded a US$500 million contract to supply Zambia with 216 million liters of petrol and 21 million litres of diesel and the contract was largely believed to have cost Zambia twice as much.

In 2013, the Zambian Government failed to explain why the country had to pay US$500 million for 216 million litres of petrol and 21 million litres of diesel when the country could have paid US$200 million”

 

Our clients response is that in August 2012, Trafigura was awarded a tender (Tender No. ZPPA/ORD/002/2012) by the Republic of Zambia’s Ministry of Mines, Energy and Water Development for the supply and delivery of 216,920,000 litres of diesel and 21,230,000 litres of unleaded petrol for a one year period.

The tender process was run on behalf of the Ministry of Mines, Energy and Water by the Zambian Public Procurement Authority (ZPPA), an independent regulatory body. ZPPA follows World Bank procurement guidelines and procedures to evaluate bids on both a technical and a financial basis.

In this tender process, ZPPA awarded Trafigura as best technical and financial offer. The supply  contract  was issued following the  Zambian  regulations and the  execution of the said  contract was performed  as per the  contract  requirement. As a supplier the  product  valuation was done  according to the  contract clauses and Trafigura cannot comment  on the  alleged loss of US $200.

 

  1. First query

Your first query states as follows:

 

The Daily Nation has been informed that Trafigura was yet again allegedly dubiously awarded a US$28 million contract to supply the country with petroleum products during the late president Michael Sata’s funeral.

Following the above synopsis, I write to find out the following

 

  1. Could you confirm that Trafigura was awarded a US$28 million contract to supply the country with petroleum products on 12th November 2014?”

 

Our client’s response is that Trafigura confirms being awarded a contract for the amount of USD28 million on 12 November 2014. The product has already been delivered, and the contract was approved by the required Zambian authorities, the ZPPA and the Attorney General of the Republic of Zambia.

 

  1. Second query

Your second query states that:

 

“It has been alleged that Trafigura was at the centre of causing confusion in the ruling party, the Patriotic Front because your ‘preferred’ candidate was not adopted?”

 

Our client’s response is that Trafigura cannot comment on the internal politics of the countries where we operate.

 

  1. Third query

Your third query asks the following:

 

“Could you confirm that that Guillaume Lettessier currently resident in South Africa was served with summons by the Zambian investigative agencies and that he has since been questioned and a statement recorded from him?”

 

Our client offers no comment to this query.

 

  1. Fifth query

 

Your fifth question is:

 

“Is it true that Trafigura refused to supply the country with petroleum products during the time the country was in a crisis of petrol and diesel even after having a Credit Letter from Government?”

 

Our client’s response is that the allegation is false. They state that Trafigura has met its obligations on the contracts it has been awarded by the Zambian Government, and will continue to do so on present and future contracts.

 

It is our client’s hope that you will take into account their side of the story as you publish your article relating to the matter at hand.

Yours faitfully,

SHAMWANA AND COMPANY

Editor’ note: details will follow. Suffice t0 say for now that money has exchanged hands and Dalbit and Kaizer Zulu are behind this move.

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