Minister of Finance Bwalya Ng’andu has said that Zambia’s procurement system is flawed and needs to be overhauled. Dr. Ng’andu said that he will be taking a bill to parliament to amend the Procurement Act.
Speaking during the Sunday Interview with ZNBC’s Grevazio Zulu, Dr. Ng’andu said that he did not subscribe to Zambians being given 20 percent of road contracts while 80 percent is given to foreign contractors. The Minister of Finance said the procurement Act should instead prioritize Zambian contractors.
Dr. Ng’andu challenged Engineers that have the capacity to carry out infrastructure projects to work together by bidding for procurement contracts in infrastructure development, adding that time has come to ensure money spent on infrastructure projects is paid to locals to ensure it remains in circulation.
Meanwhile, Dr Ng’andu has said that the government will revise the 2020 national budget because the revenue base has reduced substantially due to a number of factors, such as the recent floods, drought, and the current Coronavirus pandemic, which has put pressure on the country’s revenue base.
Dr. Ng’andu said that arising from the floods and drought, the government had to respond in order to mitigate the impact by finding resources to cushion the emergency food supplies for displaced persons and repair of washed away bridges
Dr. Ng’andu said the government also responded impulsively towards the Coronavirus pandemic which has slowed economic activities by way of providing relief to economic sectors whose business has been affected by it.
Dr. Ng’andu said that the government expects to see a large financing Gap of about 29 billion Kwacha, adding that the expenditure side of revenue has collapsed.
And Dr. Ng’andu said that he will ensure that he drives Zambia’s debt position to a level that is within the country’s’ capacity to service it without putting too much stress or strain on its ability to meet the day to day running of Government.
The Finance Minister also disclosed that the government is talking to lenders to restructure its loans adding that it has completed the process of seeking professional advisors on the debt process who will assist in the restructuring process.
Dr. Ng’andu also disclosed that the government has managed to convince donors to understand that while the Covid-19 pandemic is real, the country still has people with normal illnesses such as malaria, HIV, and AIDS which should not be ignored while fighting the pandemic.
Dr. Ng’andu disclosed that the government wants to ensure the health system remains sustainable.
Not only that, ZPPA has been rendered impotent by PF cadres. Kata mulomo is the order of the day. Please refer to Syed Walid before you comment. It’s a government of the vultures by the vultures and for the vultures. The Piffle Government
Is this the reason why those pf cadres who attacked the radio stations in muchinga province are pushing for people to only talk about covid forever so that people with opposing views don’t provide checks and balances, this covid found mealie meal prices at K200, kwacha to dollar at K16, fuel at K14 per litre, uyu mulendo covid should not make us forget about gassing and political violence too. The problem with muchinga province people after pf won in 2011, baona monga banaikila ma eggs pa mupando for ruling this country.
Appoint me as Director General ZPPA & you will restore confidence of Zambia’s procurement environment to the whole world. I brook no no sense.
Good man, Ngandu. Always sobre and genuinely humble. I’m loving him
This is the calibre of a truly patriotic minister of ours. Unlike the upnd who will sell all our resources to the west if they ever came to power. Although the minister’s points are very valid, I would like to point out that Zambians will also need to change their attitude to business and services provision. We have a laidback attitude which is not conducive to such business. Although most of you have animosity towards the Chinese,you can learn a thing or two from their work ethic. Kz
There is no other government happier with covid than lungus ……….
The economy was in trauma care before covid , now they have the best excuse to borrow, beg and not perform…..
And ……..BTW…..
KZ
Tell lungu we have not forgotten about the gassing of our people , more than 50 innocent civilians were lynched and burned in our towns because of a direct result of your gassing our citizens all that just to ban UPND …………
“Speaking during the Sunday Interview with ZNBC’s Grevazio Zulu, Dr. Ng’andu said that he did not subscribe to Zambians being given 20 percent of road contracts while 80 percent is given to foreign contractors”. The 20% sir is a policy introduced by your government, are you implying that you do not agree with what your own government has set out as a policy decision, or maybe you are not aware that this is a government position and not one introduced by procurement entities, institutions or indeed the engineers.
Most Local Contactors have performed substandard jobs. Even when local contractors have not performed according to specifications, the contractors have gone scot free. increasing the percentage will do more damage to Zambian economy unless, the cause of substandard jobs are addressed. It would be good if Zambia Contractors can perform to specifications and be given more than 20%.
I think Ng’andu is outbid his depth, he does not understand economics. Surely, it’s the generation, not expenditure, side of revenue that has collapsed. Now they are admitting we are in a debt crisis, I mean, Why seek professional advisors to talk to lenders to restructure our loans if we are confident we can repay them? And what are their terms of engagement?
You bet they have appointed their friends as advisors, friends who know nothing! Just like Chiluba sent Derrick Chitala and Dean Mung’omba ri Paris to renegotiate loans but the chaps incurred monstrous hotel bills and consultancy fees exceeding the loan they sought to reschedule! These baboons, they’re primates and can’t negotiate at all.
Everything is flawed in Zambia, the only money that gets to stay in Zambia are salaries workers earn. Contracts in Zambia go to chinese and mines go to foreigners meaning profits from these go out of Zambia whilst ZDA gives these foreign owned companies tax exemptions for 5 years. We should not be crying foul when companies like mopani and metalrex arm twists the govt into having their own way for the sake of keeping jobs for the zambian person. Effective problem solving is ensuring that something never repeats itself again, if it does the problem was simply alleviated, so the only way Zambia can rise is if we stop Depending too much on Aid and FDI, make Zambia a trade zone instead of an extraction Zone. Our people need to own investments and not jobs all the time. Lets weed out…
The problem is with ministers who kickbacks from foreign contractors. Dr Bwalya Ngandu’s proposed amendment will face backlash as his fellow PF ministers won’t support the amendment. The other issue is our brothers who want to get rich overnight, they price contract include range rovers, farms and equipments, girlfriends and other concubines etc. All they think is themselves. Very unpatriotic. Any try your luck Doc mind this will be last chance.
PF must go!
Well said Sir, Now go and execute. Ignore voices of discouragement!!
@ Kaizar, I totally agree with you. The Chinese have a very good work culture and work with a time frame. Whereas Zambians tend to disappear halfway through once accorded a contract and will only show up once a Minister conducts a spot check visit. Hence contract bids being given to the Chinese because they will deliver!!
Finance Minister consider paying retirees at PSPF.
They is trend going on that the current PF administration not aware of,
cite professor Daniel Dennett ”Over billions of years, on a unique sphere, chance has painted a thin covering of life—complex, improbable, wonderful and fragile. Suddenly we humans . . . have grown in population, technology, and intelligence to a position of terrible power: we now wield the paintbrush. (MacCready 1999, p.19).”
“Dr. Ng’andu also disclosed that the government has managed to convince donors to understand that while the Covid-19 pandemic is real, the country still has people with normal illnesses such as malaria, HIV, and AIDS which should not be ignored while fighting the pandemic.”LT Transparency is the quality of being easily seen through.
Balamitamfya tata, Pf is allergic to speaking the truth and/or doing what is right. Remember PS Kasolo? Police officers in Sesheke?
Takuli ku tina iyo.. just tell it as it is. There’s a conundrum here as bloggers have observed: foreign contractors will clearly do a professional job because they can’t afford to ruin their investment opportunity/reputation in a foreign country. On the other hand, you have some local companies who are not as duty conscious because they can always declare bankruptcy and easily form a new company.
In this case, I feel the principles of a free market economy ought to be applied – quality and performance should determine the procurement process and not state intervention.
This makes me go crazy guys.. You well know that when you give a contract to a foreigner huge sum of money will go out of the country. To this open fact you have paid lip and eye service in that the 20% still goes to a Zambian dubiously as those who win the 20% contract have no capacity to do the works. They just leave it to the major contractor to decide how much they are given. The cause is corruption. One wonders why Zambia Army and ZNS are not used to do road constructions cheaply given that Zambia security-wise is stable. The Army and ZNS can do better works than these corrupt contractors (local and foreign). Please let us put the country first and we must stop being selfish.
Am sure he has finally finished forming his own construction company, who can question a PF contractor for sub-standards work? when the contract was directly awarded at state house. That will simply increase PF cadres stealing base. This is not done in good faith boss, already you have been inflating these contracts and get kick-backs, now you feel you don’t need China man in the middle, you want the all lot to yourself? pure greed bastards.
These are the consequences of tribalism. There are many capable companies owned by people from other parts of the country but because they are not part of the Bisa, Bemba and Njanja axis of evil tribal bigotry, they are always ignored and 20% contracts are all awarded for the axis that often fail. Now you complain mambala iwe! It’s like you, you do not qualify to be Minister if Finance at all, uou only qualification is being called Bwalya Crocodile!
Firstly, @ Judge Better, Ngandu hasn’t been minister very long, it’s unfair to blame him for the government’s stance on road contract awards.
I should say that I admire the man for speaking out about things that are not right, every other minister is quiet.
As far as things go, 80 percent ought to go to Zambians and the 20 to foreigners, that’s how it should be, it’s our country after all.
2ndly, in a rare instance in which I agree with NEEZ UPND strategist (aka Kaizer Zulu) that there is much that Zambians ought to learn from foreigners, we have bad attitude when it comes to work.
Additionally, Sata was the voice of reason when it came to contracts and how they were awarded to foreigners, the man cried out and even moved RDA to state house in order to ensure balances. Whether he did that or not is unclear, what is though, is that ECL has greatly benefited by corruptly awarding contracts. The Eswatini land deal is a clear picture for everyone to see, the man was offered a mansion by someone whose company has several contracts with RDA.
Even Amos Chanda, then Press Aide for StateHouse, admitted this and said there was nothing wrong with the President receiving such a gift!
Just Google Eswatini mansion President Lungu and see the story.
“….challenged Engineers that have the capacity to carry out infrastructure projects to work together by bidding for procurement contracts ”
What is flawed is your govt….its also an open secret that officers who work govt procurement offices that award these contracts also moonlight as bid writers for Chink firms.
Indeed PF have now found a scapegoat for the run down economy- Covid-19! Unfortunate for them, apart from their Muchinga thugs, everyone knows the economy was dead way before the covid came on the scene. As for local contractors, it’s a tall order as contracts are awarded to politically aligned individuals. Look at this PS at defence, he got a contract to build a maternity ward in kabushi, he was paid in full but failed to deliver for 6 years only to reappear after he was rattled out of his hiding hole by Bowman Lusambo. That bwana minister is the reality on the ground.
True. But sadly the record of Zambian contractors is poor. Maybe a law that compels foreign contractor firms certain percentage of indegineous Zambian ownership. Later after picking the skills and discipline of operating contractor firms, then you can offer lion’s share of contracts to Zambians.
The only Minister who gives hope from this cabinet. After the damage the first finance minister for PF did of being strategy less but just borrowing and borrowing and with his supervisor failing to manage his appetite for borrowing, , this one brings a lot of fresh air, however the damage may be far beyond as there is no international confidence from those who can help us.
Using laws to suppress good performance is 1diotic. In all fairness, based on price local contractors, already have an advantage over foreign contractors. They only have to prove themselves with performance.
Forcing people to transport goods by rail when trains can hardly move at 20 km/h is ridiculous!
Think before you pass retrogressive laws.
Chinese companies that operate in Zambia are being blacklisted for corruption by World Bank yet we never hear Ministry of Finance following up on such issues or ACC getting involved.
Careful Minister! Our roads done by some Zambian contractors are already in bad shape shortly after completion.
The problem with Zambian contractors is stilling. There are some projects given to Zambians that have since stalled because the contractor has disappeared. Do we have enough laws to handle such crookedness? Why do we fear to put tough laws to stop the thieves?
Anyway, there is definitely something dead wrong with the collective psychiac of a people that would elect a wholly incompetent fool like Lungu for president. To make matters worse, the man is sick, riddled with stinking vices such as promiscuity, kleptomania and lazziness. When Inonge Wina as party chair suggested to Guy Scott that Lungu was their preferred replacement for Sata, his reaction was this, quote: “Good lord have mercy on you Mrs Wina, do you know the gutless depth you are about to plunge the country into with this charlatan?” And here we are!
Zambians need such people who are objective if the country has to thrive. We don’t need yes bwana type of people in leadership positions as if they this a prison they are running. When it’s wrong it’s wrong and when it’s right it’s right period. We don’t want people manipulating things in order for people to see what is not. Zambia is tired of mediocre leadership, everyone needs to enjoy and see their country move forward. Edgar was put in his position because they knew he can easily be controlled as long as you have some dirt on him and he can’t fire the wrong doers either because they know how they put him there. In short all wrongdoers in the PF hold Edgar at ransom.
On point, ba Bwalya. But there are other attributes that affect Zambian contractors, the major one being restrictive financing. A foreign contractor will get financing, even for capital expenditure like equipment at super low interest rates. A Zambian contractor cannot afford to buy front-end loaders, excavators, etc using local interest rates lest he be declared bankrupt and his property siezed.
That’s why Zambian contractors end up selling the contracts to Chinese and other foreigners because the current banking and financial system favours foreigners.
Only a worker will not support what the minister is alluding to. These stories from bars that Zambian contractors can’t perform will not promote local business and develop our economy. We need facts not hear say. No country is developed without local business participation. We need to empower and capacitate our local companies if we want to see real developments.
@I love Zambia, the problem with our local contractors is shoddy workmanship! Otherwise to award them contracts to promote local businesses is a very good move. Manje chabe kaja kamusango, where a local contractor is required to mix one pocket of cement to four wheelbarrows of sand, eve azafaka twelve sand and one cement! Do you expect structures to be strong with this kind of doing things?