Saturday, January 11, 2025

Single sourcing and irregular contract awards have become prevalent under PF Government

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Single sourcing and irregular contract awards by highly placed government officials to friends and relatives have become so prevalent that no effective action can be undertaken without exacting political retribution.

According to Anti Corruption Commission (ACC) operatives who have parted company with the commission, such corrupt contracts as the infamous Trafigura oil deal could not be investigated because of the very powerful people involved.’’Trafigura is just a tip of the ice-berg of corruption for which Zambians were being made to pay,’’ He said,.

The operatives cited a recent case in which government was set to lose U$3 million to a foreign company which had been awarded a contract to supply water rigs at a highly inflated price by the Ministry of Energy, Mines and Water Development.

Instead of paying US$ 2.2 million for water drilling rigs the government contracted a company in india where it was to pay UN$ 5.2 million.

But the Ant-Corruption Commission (ACC) has since instituted investigations in this matter in which the ministry allegedly awarded a Indian company a contract to supply rigs at a total cost of US$5,269,258,89 without following tender procedure.

ACC Public Relations Manager, Timothy Moono confirmed having instituted investigation into the matter but could not say how far they had gone in the enquiry.

“I am not in a position to avail to you details of the inquiry on this matter as this would jeopardize the investigations,” he said.

The source disclosed that if the indian company had continued with the contract, the zambian governemnt was going to loose US$3,000,000,00.

He said, “we do not understand why they had to award a foreign company at a very high cost when other drilling companies like A1 drilling were willing to do the same job at a cost of U$ 2,224,333.00.”

“This is what we are saying, the question or our concern is that, why should the procurement departments allow government to lose huge sums of money when there are local companies who can supply the same at lower rates. These are some of the questions that must be taken into consideration,” he said.

The source said that other foreign companies who took part in the bid had higher price compared to local bidders with lower amounts.

The sources disclosed that they had asked the ministry to immediately cancel the tender and award it to the right company with lower bids.

“The list of bidders obtained from the Ministry indicated that A1 drilling company had submitted a bid for the same at a total cost of US$2,224,333.00 with the same specifications and had supplied similar rigs before at the same price,” he said.

Others with lower bids included companies like Reba Industries U$3,120,000.00, Dando Drilling U$ 3,199,816.00 and Baba Driling U$ 4,909,858.52.

The owner of the “winning” Indian company acknowledge d having received the bidder’s acceptance letter from the ministry in November, 2013 and that he was awaiting contract details.

“Yes I can confirm that I have received the bid acceptance letter from the ministry in November, we are now waiting for the actual contract to be given before we start supplying,” he told the source.And Permanent Secretary Charity Mwansa in an interview told sources that her ministry was still having internal consultation processes before awarding the company with the contract, sources said.

“As far as I am concerned there is no contract that has been awarded to that company, the Zambian partner decided to partner with another in India and we are still in the process of scrutinizing in terms of giving it our own specifications before the actual contract is signed,” she said.

11 COMMENTS

  1. Sadly the voters capable of taking PF out of power have no access to online medias. Can the opposition subcontract VJ please -_-

    • true! i just saw kaponyas so glued to the past newspaper so excited to see summer their and how he’s winning against GBM. they don’t know about LT or ZWD. shame

  2. That’ s what you voted for and you are paying the price for voting PF in government. This is just a tip of what is happening on a broader base. Watch out !!!!!!!

  3. If irregularities have been identified, it is just well and good that ACC investigate them. However, providing a cheaper price alone cannot guarantee a contract. The tender price is usually calculated in tandem with the technical proposal. If your written procedure to do the job does not make sense with your calculated budget, you would probably not win the contract even if you are cheaper. I am not saying this is the case but, this article just seems to be dwelling on tender price and totally forgetting about technical method statement. A classic example is if I ask a contractor to price for construction of my house and he comes up with a price cheaper than what is normally expected in the market, I would be very suspicious if this contractor and probably deny him a contract

  4. Single sourcing has surely became a normal trend of doing business by the government, the same people who are PS, ministers and board members are the ones getting businesses. Zesco’s tenders and all business is single sourced by a company of one of the board members

  5. Following this sad revelation, the same CORRUPT Cowboys are telling us they will resuscitate INDECO, ” help the needy Zambian” We all all know the reason why Indeco
    is back on the agenda. It is a ZAMTROP type cash cow for relatives, tribesmen, to milk Zambia @ taxpayers expense, while the common man will wallow in poverty & muck!!!
    The Day will come back when some will have permanent bedrooms in our penal blocks!

  6. The Post News Papers, you were very much on MMD as the most corrupt party and government of all times. M’membe, what can you say on these revelations now that you support Sata and his government? This time you cant say anything because you are supporting your friend Wynter and the reason the DBZ issue is dying a natural death in PF government. Remember things will come to you and it will be too much to handle that u will just collapse. Repent and be born again if you are not yet one.

  7. The PF leadership are behaving as if they will be in government for eternity. They think they are invincible and Sata is God hence infallible. It is just a matter of time before they dance to the same music the have subjected others to. They are busy looting our resources and money with impunity, forgetting that a day of reckoning is on the horizon. They will pay for their actions.

  8. Bidding is not only about the price. A preliminary evaluation is done to look at commercial and technical responsiveness of the bid offered. This may include furnishing of a bid security valid for the period stated in the bidding procedures, completeness of the bid i.e is the bid form signed, is the power of attorney included, have Audited accounts been submitted as required normally for three years, has the bidder carried out similar contracts with a value equal or greater than that being bid for, has the bider any current litigation, etc. Does the equipment being offered met the tech specifs.Then the bidder can be deemed to be substantially responsive to the requirements of the bid and detailed examination of the bid is done on those bids which are responsive. Price is then looked at nex

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