Maravi

‘The minister does not play any role in procurement’

‘The minister does not play any role in procurement’
Written by Staff Reporter
Tuesday, March 24, 2009 4:54:06 PM

Continued from yesterday
Kabimba: What was your reaction? What did you do as permanent secretary?

Dr Mambwe: I called the head of procurement and sought advice on whether that was the correct procedure. The head of procurement reminded me of the letter that came from then Secretary to the Cabinet Evans Chibiliti in which he had advised the ministry to seek advice from ZNTB on the procurement process to be undertaken. ZNTB had advised that the procurement of the radars should not be single sourced…

Kabimba: What did you do afterwards?

Dr Mambwe: I asked the head of procurement to do an internal memo advising on what procedure we should follow in procuring the radars.

Kabimba: My lord, I would like to show the witness P20. What document is that Dr Mambwe?

Dr Mambwe: The same document, which is here.

Kabimba: Look at the right hand corner.

Dr Mambwe: These were my instructions to the head of procurement to give appropriate advice as per provision of CAP 294.

Kabimba: Did your head of procurement abide by your instructions?

Dr Mambwe: Yes, my lord.

Kabimba: I am showing the witness exhibit P17. What is that document?

Dr Mambwe: The date is 12 December, 2008 and it is an internal memo from the chief purchasing and supplies officer to the honourable minister copied to the deputy minister and myself.

Kabimba: Now, you have just informed the tribunal that ZNTB advised on how to go about acquiring radar system, correct?

Dr Mambwe: Correct.

Kabimba: Was that done in writing?

Dr Mambwe: It was in writing.

Kabimba: P21, What is that document Dr Mambwe?

Dr Mambwe: Directions from the ZNTB on the procurement of radars for Lusaka and Livingstone airports.

Kabimba: What is the date referred to?

Dr Mambwe: 13th May, 2008.

Kabimba: When you were seeking that advice from ZNTB, did you have any particular company in mind?

Dr Mambwe: Not at all.

Kabimba: Did you at any stage ask for monies from the Ministry of Finance for that tender?

Dr Mambwe: Through correspondence, yes.

Kabimba: My lord, I am showing the witness exhibit P9. What is that document Dr Mambwe?

Dr Mambwe: An internal memo from the office of the minister to myself.

Kabimba: What is the date?

Dr Mambwe: 5th January, 2009.

Kabimba: What does it say?

Dr Mambwe: Evaluation of tender bid for the provision of radars….

Kabimba: According to that internal memo, what are the reasons for redoing the tender?

Dr Mambwe: That no middlemen and only manufacturers of radars be invited to bid for the tender.

Kabimba: I am showing the witness exhibit p15. What is the date on that document?

Dr Mambwe: 12 December, 2008.

Kabimba: Who is the author of that document?

Dr Mambwe: E Mambwe.

Kabimba: Yourself?

Dr Mambwe: Yes.

Kabimba: Addressed to who?

Dr Mambwe: The honourable minister Dora Siliya.

Kabimba: In that document, you refer to a letter by a concerned taxpayer, correct?

Dr Mambwe: Correct.

Kabimba: How did that letter you are referring to come?

Dr Mambwe: If my memory serves me well, it came from the minister’s office. It was attached to a letter written by Secretary to the Cabinet when the minister was expressing concern on the procurement of radars on concerns expressed by the tax payer.

Kabimba: What were those concerns?

Dr Mambwe: It is very difficult for me to say them but the taxpayer’s concern was that the tender process was not transparent.

Kabimba: The minister’s concern…

Dr Mambwe: The minister’s concerns were that the people who were selected were not manufacturers but middlemen.

Kabimba: What was your reaction? Did you write back to the minister?

Dr Mambwe: Yes, I did after consulting the head of procurement and said I need the matter investigated fully and I need a report.

Kabimba: What happened after that?

Dr Mambwe: The head of procurement concluded his investigations and did a write-up to the minister…the procedure that was followed.

Kabimba: The letter from the concerned citizen, was it handwritten or typed?

Dr Mambwe: It was typed.

Kabimba: And it was addressed to ZNTB and copied to the minister?

Dr Mambwe: I should think so but it was not addressed to myself.

Kabimba: But you got a copy from the minister’s office?

Dr Mambwe: Correct.

Kabimba: Did anyone tell you how this letter was delivered to the minister, who took it there?

Dr Mambwe: I don’t know.

Kabimba: My lord, I would like to show the witness exhibit P18. What is the date?

Dr Mambwe: 7 January, 2009

Kabimba: The author and the addressee?

Dr Mambwe: Myself permanent secretary Ministry of Communications and Transport addressed to Dr Joshua Kanganja, Secretary to the Cabinet.

Kabimba: In the first paragraph, you are referring to the minister’s letter dated 6 January, 2009, what was it about?

Dr Mambwe: The same letter addressed to the Secretary to the Cabinet expressing concern on the tender procedure on the procurement of radars.

Kabimba: Did the Secretary to the Cabinet react?

Dr Mambwe: Yes.

Kabimba: What did he do?

Dr Mambwe: He wrote me a memo.

Kabimba: How was the matter concluded?

Dr Mambwe: After the Secretary to the Cabinet received my letter, he wrote back to me.

Kabimba: In other words, he agreed with your explanation, he was satisfied?

Dr Mambwe: I believe so.

Kabimba: Look at paragraph three of the letter and read it. Dr Mambwe reads the letter to the tribunal.

Kabimba: The letter of offer from Selex, what was it about?

Dr Mambwe: It is difficult for me to remember the contents of the letter but I think Selex were offering to repair the radars at Lusaka International Airport

Kabimba: Selex were offering to repair the radars at Lusaka International Airport?

Dr Mambwe: Correct.

Kabimba: Was this issue about radars already a matter of consideration for the ministry?

Dr Mambwe: Yes, it was.

Kabimba: It was?

Dr Mambwe: Yes.

Kabimba: Who initiated?

Dr Mambwe: The users, which is National Airports Corporation.

Kabimba: They wrote to your ministry and said what?

Dr Mambwe: It depends what you mean. Requests?

Kabimba: Yes.

Dr Mambwe: The request was that there were concerns from the public on the lack of radar and it was incumbent on the government …the absence caused a safety hazard

Kabimba: Did National Airports ask for the repair or the procurement of a new system?

Dr Mambwe: National Airports Corporation requested that we procure new radar equipment.

Kabimba: I would like to show the witness exhibit P16. What is that document?

Dr Mambwe: It is a minute written to the Civil Aviation Department on the repair of radars by Selex.

Kabimba: Who is the author?

Dr Mambwe: Robinson Msitala, managing director National Airports Corporation.

Kabimba: Addressed to who?

Dr Mambwe: The director Civil Aviation.

Kabimba: Is it copied to anybody?

Dr Mambwe: Yes, my lord, the permanent secretary, the director Air Navigation Services.

Kabimba: And you saw that letter?

Dr Mambwe: Yes, my lord.

Kabimba: Read that document.

Dr Mambwe reads the document to the tribunal.

Kabimba: These were concerns from the concerned taxpayer. How did you handle them?

Dr Mambwe: The concerns were valid.

Kabimba: To your knowledge, what happened to the free offer from Selex?

Dr Mambwe: I am not aware. We went ahead to advertise the bids obviously through ZNTB not the ministry.

Kabimba: Did Selex put in a bid?

Dr Mambwe: My lord, I am not aware.

Kabimba: Do you know who made the decision in the ministry to take out the free offer?

Dr Mambwe: I am not aware.

Judge Chitengi: Answer the question.

Kabimba: Who made the decision to take out the free offer from Selex?

Dr Mambwe: I don’t know

Kabimba: I would like to show the witness exhibit P12. What is the date?

Dr Mambwe: My lord, the document is dated 26 January, 2009.

Kabimba: What is the nature, the author and the addressee?

Dr Mambwe: Honourable Siliya on Selex proposal offer addressed to the vice-president Selex.

Kabimba: Who is it copied to?

Dr Mambwe: The permanent secretary Ministry of Communications and Transport, director Civil Aviation Department and the managing director National Airports Corporation.

Kabimba: Are you familiar with that document?

Dr Mambwe: No, my lord.

Kabimba: It is copied to your office.

Dr Mambwe: No, but I didn’t see it that time.

Kabimba: This is the first time you are seeing it?

Dr Mambwe: Yes.

Kabimba: My lord, I am done.

Another lawyer representing the petitioners Willie Mubanga continues with examination in chief.

Mubanga: I just want you to help the tribunal in clarifying some of the issues. Let me ask about the tender process as far as you know it. Does the minister have a mandate or authority to engage in a tender process in the procurement Act?

Dr Mambwe: Not to my knowledge.

Mubanga: What about under the procurement Act, does the minister have a role to play?

Dr Mambwe: No. The ZNTB interacts with the chairperson but notwithstanding that there is something the minister finds unusual, she can ask the permanent secretary.

Mubanga: Has the ministry ever engaged persons to provide consultancy services?

Dr Mambwe: Yes.

Mubanga: Examples?

Dr Mambwe: In roads for instance, Zamtel early days to assess the assets of Zamtel.

Mubanga: Were they local or foreign?

Dr Mambwe: Local.

Mubanga: Before you engage, what do you do?

Dr Mambwe: First you advertise for expression of interest, you shortlist and then invite them for discussions… If the contract falls within the permanent secretary’s threshold on authorised to approve without going through tender but normally request for three quotations…

Mubanga: What about in respect of the MoU with figures of $ 2 million?

Dr Mambwe: At the time I was at the ministry, the threshold was K2.5 billion anything above that was the threshold of ZNTB.

Mubanga: Dr Mambwe, there have been allegations that Thales appears to be a middleman and not a manufacturer. What do you know?

Dr Mambwe: First, I wouldn’t be qualified to say yes. The tender process is done by the evaluation committee, not from the ministry alone but National Airports Corporation, Zambia Air Force, Office of the President and ZNTB. My staff plays the role of a secretariat…

Mubanga: From the information on your table, So, Thales was it a middleman?

Dr Mambwe: I don’t know.

Mubanga: You don’t know?

Dr Mambwe: I don’t know.

Mubanga: Dr Mambwe, was it ever brought to your attention that the tender process was being interfered with by Thales, for example?

Continued from yesterday

Dr Mambwe: No.

Mubanga: Was it ever also brought to your attention that Thales had engaged in fraudulent practices in competing with other competitors?

Dr Mambwe: No, my lord.

Mubanga: Dr Mambwe, you said amongst the questions put to you, you don’t know who decided to get the free offer from Selex?

Dr Mambwe: Yes.

Mubanga: Who would normally make such a decision to get a free offer from Selex?

Dr Mambwe: The permanent secretary consults. It is not a unilateral decision.

Mubanga: Look at exhibit P12.

Judge Chirwa: There was this free offer from Selex, who will accept?

Dr Mambwe: First of all, the users who would write to my office and then I will consult then make the decision.

Judge Chitengi: What I am not clear about is this free offer. Was it something that happened always?

Dr Mambwe: During my time as permanent secretary, I never came across any free offer for services.

Mubanga: Dr Mambwe please read the third paragraph to the tribunal.

Dr Mambwe: [Dr Mambwe reads the paragraph]. Let me reiterate what I said, the role of the controlling officer is to authorise the procurement of goods and services…the minister does not play any role.

Judge Chirwa: We adjourn to 14:30 this afternoon

Labels: DORA SILIYA, PRIVATISATION, PROCUREMENT SYSTEMS

posted by MrK @ 4:53 PM