FUEL SUPPLIERS’ DUPLICITY EXPOSED
A SCAM in which some suppliers of government fuel are abrogating some provisions of the contract they signed by subcontracting foreign transporters of the consignment mainly coming through Tanzania has been unearthed.
Part 26. 2. 2A of the fuel supply contract provides that 50 percent of trucks that must ferry fuel into Zambia must be local transporters. It reads as follows:
“A minimum of 50 percent of the trucks to be used shall be from locally Zambian owned companies in accordance with Statutory Instrument No. 36 of 2011 of the laws of Zambia engaged on commercial basis.
“The supplier shall on a monthly basis submit to the procuring entity, the list of local owned companies consisting 50 percent. The list shall include details of the trucks being used. All trucks shall comply with the Zambian Standards for petroleum road tankers,” reads the provision in part.
Authorities in Tanzania have passed a law to reduce volumes of cargo transported by road by almost 4 tonnes and came into effect on January 1, 2019, though it was waived until March 1, 2019.
Consequently, most Zambian transporters abandoned the route as their tankers could not meet the new specifications and could not modify their tankers to meet the standards demanded for by Tanzania.
But they argued that their trucks conformed to international standards. They instead asked government to direct suppliers to stop using the Tanzanian route but this has not materialised.
However, records held by Transporters Association of Zambia (PTAZ) indicate that volumes of fuel coming through Tanzania have remained the same despite their tankers not traversing the corridor thereby giving their share to the foreigners.
In an interview yesterday, PTAZ secretary general secretary Benson Tembo called for a thorough investigation of the suppliers who were giving their 50 percent shares and that those who will be found wanting must have their contracts terminated.
“Right now, only about 3 percent of our tankers ferry fuel from Tanzania but volumes have not reduced, which means that foreign companies are not only getting their 50 percent allocation but also 47 from our share. This is done in conjunction with suppliers who are giving them these contracts thereby abrogating the contracts signed with the Zambian Government.
“This is what Tanzania wanted. They wanted to kick us out so that what belonged to us is taken away from us. We knew what we meant when we advised government to compel these suppliers to bring our fuel through Beira in Mozambique where there are no restriction. Now, suppliers and foreign transporters are conniving and taking our jobs away from us and our government is watching,” Mr. Tembo complained.
He said some suppliers were not sincere and that such must be removed because they were a drawback to the growth of the petroleum transportation subsector.