Good Africa News Zambia not allowing Corruption
DiamondWorks Has No Zambian Oil Contract, Govt Says
June 3 (Bloomberg) -- Zambia's government denied extending an
oil supply contract with DiamondWorks Ltd., and said Vice
President Enoch Kavindele was fired because he received a gift of
$102,000 from the company. DiamondWorks shares fell.
Vancouver-based DiamondWorks last Wednesday said Kavindele's
office told the company's Trans Sahara Trading Ltd. unit the
contract to supply Zambia with 500,000 metric tons of oil had been
extended. The government fired Kavindele later that day without
giving a reason.
President Levy Mwanawasa said he would not allow ``my
leadership to receive gifts which are offered with strings
attached,'' in a letter to Kavindele that was distributed to the
media.
Zambia has been short of motor fuel since Mwanawasa
terminated the agreement with DiamondWorks earlier this year,
citing unspecified irregularities. The country has promised to
fight corruption in return for $1.3 billion from western donors,
including the International Monetary Fund and World Bank.
Theo Watson, a legal adviser to DiamondWorks in South Africa,
said he couldn't comment on the alleged gift. He said he wasn't
aware the contract had been canceled.
``The Zambian government has no contract, officially or
unofficially with Trans Sahara trading,'' said Austin Sichinga,
permanent secretary in Zambia's energy ministry, in an interview.
DiamondWorks shares had risen 22 percent in Toronto since it
announced the transaction at the close of trading five days ago.
They fell 8 cents, or 4.5 percent, to C$1.65 as of 11:13 a.m.
Toronto time.
Zambia is in talks to buy crude oil from South Africa, Iran
and Saudi Arabia to supply its sole refinery, Indeni. Over the
next 15 days, Indeni is expected to process 50,000 tons of oil.
Emmanuel Kasonde, Zambia's finance minister, was fired on the
same day as Kavindele. In his letter, Mwanawasa said Kasonde had
awarded a contract for the import of 40,000 metric tons of corn to
a local transport company, Sable Transport Ltd., without
consulting the cabinet.
The Zambia National Farmers Union had asked the government to
halt imports because of an anticipated good harvest.
--Anthony Mukwita in Lusaka and Antony Sguazzin in the
Johannesburg bureau (27)(11) 286-1934, or asguazzin@bloomberg.net,
through the London bureau (43)(1) 513-2660. Editor: Morris, King |
