By Amb. Emmanuel Mwamba
SCANDAL; $35million Advance Payment against Future Power Purchase Agreement at ZESCO
Lusaka- Monday, 16th September, 2024
A company from Dubai, Petrodex Trading, is seeking a bulk supplier agreement with ZESCO to evacuate power to the Democratic Republic of Congo.
ZESCO has already granted it 30 megawatts and it is already trading the power using some named local energy company.
But the deal to buy power and export power to the DRC, has failed both the security clearance and legal basis as both the national security and Attorney General, Mulilo Kabesha have rejected the deal.
Proprietor of Petrodex, french-lebanese national, Rami Ghaziri, is a convict and has been indicted in various jurisdictions for money-laundering and fraud.
Petrodex, says that it strives to become a leading distributor, operator, and trading company for energy products and raw and processed material.
The company says above the 30 megawatts its exporting to the DRC, it seeks more 90 megawatts, by December 2024.
Petrodex has offered ZESCO cash advance of $35 million, provided ZESCO could commit and sign another 90 megawatts, and the company is seeking concessional tariff rates.
“Following our meeting on 22 August 2024 regarding the same subject, where ZESCO highlighted the challenges to agree on our proposal dated 19 August 2024 (proposal attached), we have revised the structure
that aligns better with ZESCO’s vision and its urgent requirement for additional funds to sustain its cash flow.”
“We are willing and ready to advance a pre-payment of $35 million, provided ZESCO can commit to dispatch a total additional capacity of 90MW, over and above our current off-take of 30MW, to be evacuated to the
Democratic Republic of Congo (DRC)”.
“This commitment follows the principles outlined below:
1. Ramp-Up of Power Capacity: Taking into account our current offtake capacity of 30MW into DRC, the power capacity will be gradually increased, from January to May 2025 as follows:
● Till end of December 2024: 30MW (current offtake)
● January 2025: 80MW
● February 2025:90MW
● March 2025:100MW
● April 2025: 110MW
● May 2025:120MW
2. Temporary Discount: Until ZESCO reaches the dispatching of the full additional 90MW capacity for export to DRC to which Petrodex would have already advance $35 million, we request a temporary discount on the ongoing power flow.
The proposed discount structure is as follows:
● $0.02 per kWh discount
● September 2024- April 2025:
● May 2025 onwards: No discount applicable as long as ZESCO would be dispatching the full additional capacity of 90MW
However the Attorney General Mulilo Kabesha has rejected the term sheet submitted by ZESCO and Petrodex, citing various irregularities and informing the Managing Director, Victor Mapani of the urgent need to involve the Minister of Finance as this deal was a breach of the Public Finance Management Act and amounted to accumulating debt and offering discounts for a state-owned enterprise on behalf of the country.
When Petrodex Trading was taken for security clearance, the proprietor French-Lebanese businessman Rami Ghaziri, failed the test lamentably as he is a former convict and he is wanted in various jurisdictions for money laundering and fraud charges.
The Romania’s National Anticorruption Directorate (DNA) indicted French-Lebanese businessman Rami Ghaziri, the owner of the Romanian poultry producer Agroli Group, and nine other defendants, most of them Syrian or Lebanese nationals, on multiple counts of tax evasion, money laundering, and setting up an organized crime group.
The ten defendants allegedly caused the Romanian state a damage of EUR 25 million, according to the prosecutors.
Rami Ghaziri has been referred to by the local media as “the chicken king” as his group is one of the biggest poultry producers in Romania. The Agroli group controls Avicola Crevedia, Romania’s first poultry farm opened in 1959, Avicola Tartasesti, and a fodder factory.
The DNA has indicted Ghaziri has indicted for creating a criminal group, tax evasion, and money laundering.
The French businessman was also in prison serving a sentence in another case. He was convicted to three years in prison on June 15, in 2016, for buying influence from former Romanian prosecutor Angela Nicolae. He was found guilty for paying Nicolae to help him dodge prosecution for tax evasion.
In the case that was recently sent to court, Ghaziri had been investigated for setting up two organized crime groups together with the other defendants, between July 2010 and August 2012, according to DNA.
The defendants used a chain of ghost companies, creating a damage of over RON 107 million (EUR 25 million) to the state budget, according to the prosecutors.
Between September 2010 and October 2012, Rami Ghaziri, together with the other defendants, submitted 54 requests for VAT reimbursement or compensation based on fictitious transactions.
They received EUR 19 million.
In 2012, the defendants Zayed, Alzaid, Moubarak and Chraif signed a contract for selling a plot of 42,000 sqm at an overvalued price for concealing the true origin of the money resulted from tax evasion. They sold the land to a company managed by Rami Ghaziri.
The DNA prosecutors seized the properties belonging to two companies owned by Rami Ghaziri.
They also blocked the shares owned by Ghaziri and Kharrat in several companies.
The French businessman was in prison serving a sentence in another case. He was convicted to three years in prison on June 15, 2016, for buying influence from former Romanian prosecutor Angela Nicolae. He was found guilty for paying Nicolae to help him dodge prosecution.
If this is true, then it’s disastrous. Why can’t zesco export directly to the DRC ? Do we need a third party for export to a neighboring country?
We have a businessman in state house. And his way of business is brokerage in turn he only demands for a share through A to Z to avoid soiling his name. You will continue seeing such deals as long as he remains in state house. And as proof number 1 he will NEVER declare his assets.
What is there to be labeled a scandal? Is it a third party buying power from Zesco and then export? Or is it that they are exporting power at a time of extreme load shedding? Mwambas writing skills are pathetic, full of innuendos and lacking on substance.
Yes his writing skills are as questionable as mine. One Mwamba wants to be the center of attention instead of delegating the issue to a person who can better do the task.
However, this doesnt nagate the facts that the article suggests. And I quote “But the deal to buy power and export power to the DRC, has failed both the security clearance and legal basis as both the national security and Attorney General, Mulilo Kabesha have rejected the deal.”
What Mwamba further doesnt provide is, who is the local company that is acting as agent for Zesco or the Lebanese doubious individuals?
A check as to who these characters are.
We have an influx of foriegners that masquerade as Zambians or persons with the right to stayin Zambia when laws have been flouted in the documents they have. Kabesha is right in questoning the manner Mapani does business and he forgets that he acts for and on behalf of a public body. His proximity with the powers that be undermines the Board Chair and places the institution in further quagmire than the power shortage that we have.
I would suggest Ba Mwamba if you have people leaking information to you. Let the professional do the writing. Let them help you fill in the blanks. Ba Mapani maybe its time for you to leave. From the blantant abuse of authority by employing family to this. Clearly instead of serving Zambians. You seek to gratify yourself.
Ba Mwamba who is this Zambian company and let them return the money that they were paid in advance. This is a repeat of the Zindaba and RATSA debacle again. And people dont seem to learn
Mt mwamba you have managed to confuse me, if the deal has failed because of government concerns, where is the $35million advance coming from.
Further more as you have stated the deal has failed how can ZESCO be exporting to DRC
I always follow your posts becausenyou seem to be privvy to information that the general public is not aware of. Can you explain how that comes about
What amazes me is UPND cadres on social media platforms are comical and ignorant. Guys I wish you could go back to school of thoughts, clinical thinking and analytical thinking as you used to be. Where are people like senior citizen now director in the ministry of education.
This article by Mwamba is about how thugs or criminals are coming to Zambia to take advantage of our power struggles. What is the point of producing power and thereafter you give a third party to sell your power to get more profit?
Zambians want to see ZESCO start investing in renewable energy, power generation that will stand a test of time. Today you are in power eating, travelling, sending your kids overseas to study, the Mark Simuwe buying ranches, trucks which they never could afford.
They have forgotten that if before them decided to sale ZeSCO they would have sold it but this is one of the most profitable companies owned by the government. MD salary is possible three times that of the president. When the company is going through difficulties why can’t the MD or senior management cut their salaries/bonus.
This is why the parliamentary committees in Britain or Congress , senate are powerful to hold the most powerful people accountable
Instead of chastising people read the article again.
Mr Mwamba what you are not telling us is when the initial 30 megawatts deal was entered into.
Since the proposed additional deal or the proposed extension deal you say has been rejected how do you call it a scandal? It is a non-issue in my eyes because you can’t something a scandal when it has been rejected.
Exactly and who the local company that Zesco is dealing with.
Who did Zesco pay the US35million dollars?
Witch hunting and failed to find the witch.