Zambia’s fuel debt to Suppliers ‘Increasing Inorder to Reduce’.
MBS16.02.2025
Last week the Minister of Energy Makozo Chikote stated in Parliament that Zambia’s fuel debt was $597 million in 2021 (when the PF exited government) and now stands at $735 million as at Dec 31, 2024. Instead of the UPND government reducing the debt as the promised to, they have instead increased it by 23%. Their kokai theorem of “Increasing in order to Reduce definitely” definitely at play.
Arithmetics are not adding up given that they essentially removed subsidy on fuel since 2021 and been selling fuel to motorists at market prices . This on top of the fuel levy (tax) that is slapped on consumers and toll gate fees gives the treasury millions of dollars surplus funds to have theirs fuel books.
So why has the UPND government not been liquidating the fuel date. Surely if they have money to undertake expensive unnecessary face redesign of the Kwacha, they also must have money to repay the fuel debt.
Other than in the fertilizer industry, the fuel sector is one area that has seen huge corruption and scandals since 2021. Talk of the Agro fuel and its owner Sashi Patel grande corruption scandal. In 2021 they were given to run the Tazama pipe line from Dar es salaam to Indeni. The then not in use pipeline had stock worth millions of dollars that needed or needs to has to be inside the pipeline at any point in time whether the line is operational or not. Agro fuel sold the stock they found in the pipeline and pocketed the money sharing profits with whoever.
Then Government had to avail new funding to restock the pipe line so Sashi (a close associate of those in the corridors of power) can restart the pipeline operations. So he was funded for the start up stock to be in the pipeline and for the one offloaded at Indeni for the last 4 years. Then a few weeks ago the National was told his contract had been terminated as if they were told when he was contracted. On top of the first pipeline stock Agro fuel inherited and did not pay for, they made huge ‘stinking’ USD profits out of government and externalised.
This huge loot of money scrupulously made last 4 years by Agro fuel is what should have been used to liquidate the now almost doubled fuel debt between 2021 and 2025.
The UPND government has had the capacity to liquidate this and all other local debts but they are just not good payers of what they owe to people or companies. They are WIIFU (What’s In It For Us) masters before they can pay anyone otherwise they will never pay.
This has led to some oil companies owed to sue this government in international courts. The likes of Sahara energy sued and won in a Belgium court. Won’t be surprised to hear bailiffs in action on the international scene against Zambia.
Corruption gone grande in Zambia and the fuel procurement by Agro fuel is a classic example. The non payment and ballooning of the oil debt by government despite their promises to do so pre 2021, is another classic example of their “ Increasing in order to Reduce” faith and belief. How else to describe a debt to fuel suppliers growing from $597M to $735M in 4 years. Grande Corruption.
Miles B. Sampa, MP
President
Patriotic Front (PF)