Zambia: How Can Govt Build Local Business Capacity
Zambia: How Can Govt Build Local Business CapacityThe Times of Zambia (Ndola)
7 July 2007
Ndola
THE problem that the Government has continued to face in dealing with local contractors is one that needs urgent sustained attention if the situation is to improve. Yet again, Minister of Works and Supply, Kapembwa Simbao is in the news complaining about a local contractor who has apparently abandoned the construction site shortly after receiving an initial payment from the Government. This scenario is costing the Government in two major ways. Firstly, there is the obvious loss of the money that is being paid.
Secondly, there is lasting damage of lost opportunities for the population to develop their local areas. Most of the projects that are given to local contractors are those deemed to have a direct poverty reduction impact on local communities, especially in rural areas.
The project that Mr Simbao cites in Serenje, where a contractor appears to have abandoned the site after receiving K900 million, is such an example. The abandonment of the project to construct two bridges in the area has resulted in the stalling of construction of dams. The dam projects are a critical measure in mitigating the effects of sporadic droughts which have a devastating effect on peasant farmers, who constitute a significant group of the vulnerable poor.
There is also the not so small matter of scuttling Government's efforts of empowering local business people. The awarding of these contracts is one of the most tangible ways that the Government can employ to build local business capacity.
But the intransigent behaviour of such local contractors will in future make the Government wary of entrusting vital projects to local applicants.
These problems need to be resolved quickly. One way is for the Ministry of Works and Supply itself to effect a more stringent elimination process. Just as the banking sector is working on a credit ratings system, a mechanism can be devised that eliminates the truant without penalising the few who are doing an honest job among the local contractors.
The Ministry of Works can also help by quick monitoring of the projects once payment is made, before the money is squandered. This goodwill must not be squandered.
The Ministry of Works has in its hands an opportunity to prevent the loss of this goodwill.
Labels: CONTRACTORS
posted by MrK @ 4:43 AM
4 Comments:
One bad apple doesn't spoil the whole bunch. Let's judge local contractors on the basis of performance and not on the basis of one misguided contractor.
If there are clear guidelines on hiring contractors, and it is no mystery as to why anyone is hired and how much is paid.
Open systems of procurement and accounting - and keeping council head accountable. If they can't account for an entire period - fire them. In fact, prosecute them for embezzlement of public funds.
There goes "Times of Zambia" again ! This is one story that should not be written with kids gloves, the issue at hand is a serious one. The main culprit here is none other than the government itself. This is not the first time that contracts are being awarded and payment dished out immediately, without any formal investigations to establish the integrity of the firm in question and its capacity to deliver on time. Once funds are dished out, the government just closes its eyes and waits for a miracle without practicing any traceability.
Just what criteria is the government using to determine the solvency of the bidders when awarding these contracts? How can one confine huge public funds to nondescript dubious firms which have no knowledge in construction? Even when building a ramshackle, one doesn't just dish out money carelessly to the supposed builder without any proof of workmanship. Seeing is believing, NO ? As usual "Times" cowardly puts the blame on the contractor (receiver) and not the foolish and blind issuer(giver).
slm
The government has a lot of work to do to clean up it's procurement and accounting. However, then there would be no way to divert funds, would there?
This is the real way to tackle corruption. But will this MMD government do this, when they seem to be the major beneficiaries of this 'confusion'?
Post a Comment
Subscribe to Post Comments [Atom]
<< Home