Maravi

Lifuka calls for thorough probe into hearses saga

Lifuka calls for thorough probe into hearses saga
Written by George Chellah
Monday, July 06, 2009 11:59:03 AM

TRANSPARENCY International-Zambia (TIZ) president Reuben Lifuka has said it is strange that local government minister Benny Tetamashimba is trying to distance himself from the procurement of hearses in the ministry. And Lifuka said the Anti-Corruption Commission (ACC) should clearly establish the role that both Tetamashimba ad his predecessor Sylvia Masebo played in the hearses saga.

Lifuka said TIZ had observed with sadness the exchanges of words between Masebo and Tetamashimba over the decision and subsequent purchase of 100 hearses for distribution to various local authorities in Zambia.

"We find the exchange unfortunate and a sure sign of the weaknesses that are inherent in the manner that public affairs are being managed. First and foremost, while we question the rationale and appropriateness of purchasing 100 hearses, we find it strange that Hon Tetamashimba would like to distance himself from a decision taken by the Ministry of Local Government and Housing at the time that Hon Masebo was Minister,” Lifuka said.

“What is even more intriguing is that Hon Tetamashimba is on record as supporting the principle of acquiring the hearses and that he would hasten to deliver these vehicles to all the councils. It is clear therefore that both Hon Masebo and Hon Tetamashimba are seemingly of one mind on the need to procure hearses.

"What seems to be the point of departure among these erstwhile colleagues, from our reading of the situation, is firstly the amount paid for each of the hearses - is it US$9,300 or is it US$29,000. Secondly, the mode is which payments were affected - was this done in a manner that provides rent seeking opportunities in terms of corruption?”

He said from their perspective, both Masebo and Tetamashimba took part in the procurement of the 100 hearses.

"What this means to Transparency International Zambia is that both Hon Masebo and Hon Tetamashimba have had a role to play in the procurement of the 100 hearses and it is necessary therefore that the Anti Corruption Commission in their investigations clearly establish the role that both of these Honourable Members played in this saga," he said.

He said it was also necessary for Tetamashimba to explain to the public the whole procurement process followed for the hearses.

"Such as, was there an open or selective tender for the purchase of these vehicles? How many companies submitted bids? What was the result of the evaluation of the bids received and what role did the Zambia National Tender Board (ZNTB) as it was known then - play in this whole process? Further, did the Ministry of Local Government and Housing do any due diligence of the winning bidder to ascertain their credibility and track record?" Lifuka said.

“It has been brought to our attention that Top Motors Ltd were awarded a contract for supply and delivery of 100 hearses at a tender sum of USD2,920,000 meaning that each Hearse cost USD29,200, and between December 2008 and May 2009, the Ministry of Local Government and Housing paid a total of over K14.9 billion for these hearses."

He said the question to be asked was where the figure of US $9,300 was coming from.

"We believe the explanation should come from both Hon Masebo and Hon Tetamashimba - should we as Zambians assume that the bid from Top Motors Ltd was inflated and in actual fact the unit cost should have been US $9,300 and not US $29,000? If this is the case or even a possibility, ACC and the Drug Enforcement Commission should thoroughly investigate Top Motors Ltd for possible money laundering activities as well," Lifuka explained.

"And it is in everyone's interest to know who benefited from the difference? Could it also be a question of Top Motors Ltd deliberately declaring a lower unit cost for the purpose of paying lower duty and other taxes to Zambia Revenue Authority? We want to urge that all suspects - whether individuals or organizations involved in this saga should be thoroughly investigated and culprits brought to book."

Lifuka urged the office of the Auditor General to be actively involved in the matter.

"Especially, the manner in which payments to Top Motors Limited were executed - did these follow standard procedures or was quick payment facilitated in order to benefit some people within the Ministry? Did Top Motors Ltd meet all the necessary obligations before receiving their payments or were some standard rules of procedures ignored for due to personal interests i.e. did Top Motors provide a valid bank guarantee for all the payments received?" said Lifuka.

"Another critical question that begs an answer is why was Top Motors Ltd paid US $2,900,000 in a period of 7 days (in late December 2008 and early 2009) - is this the way government handles payments to suppliers - even before full delivery of the vehicles?

The significance of this saga should not be lost on the Zambian people because it is clear that again, another Ministry and now Ministry of Local Government and Housing, albeit with the full involvement of the Zambia National Tender Board, did commit the Zambian government to another controversial contract of over US $2.9 million in the last quarter of 2008."

Labels: BENNY TETAMASHIMBA, CORRUPTION, REUBEN LIFUKA, RUEBEN LIFUKA, SYLVIA MASEBO

posted by MrK @ 11:00 AM