Maravi

‘Compel mines to give locals contracts’

‘Compel mines to give locals contracts’
Written by Kabanda Chulu
Tuesday, August 11, 2009 5:51:35 PM

MINE Suppliers and Contractors Association chairperson Fanuel Banda has advised the government to create policies that will compel mining companies to deliberately offer contracts to local suppliers.

Commenting on the increasing levels of inside trading and lack of transparency in the procurement services for the mining industry, Banda said foreign suppliers would not add value to the Zambian economy.

“Our understanding is that the business of trading should be done by Zambians unless where they fail but even then partnerships should be encouraged to be established so that there is that linkage. And government must create policies to compel the mines to offer contracts to local people because they prefer those who come from their countries,” Banda said.

“Also there is no transparency and inside trading is too rampant when supplying the mines. For instance, Mopani Copper Mines (MCM) spends an average of US $ 20 million per month on procurement but these funds always get back to their respective countries, so the mines should be compelled to pass through benefits to local people supplying the mines.”

To address the issue of inside trading and lack of transparency, Mopani Copper Mines in 2007 introduced the Quadrem System, which is a kind of online procurement system, but many local suppliers misunderstood the concept and resisted it, saying it would favour foreign suppliers.

The local suppliers petitioned late president Levy Mwanawasa that the Quadrem system would disadvantage local suppliers. Consequently, it was removed hence is no longer in place.

Labels: CONTRACTORS, FANUEL BANDA, MCM, MINING, MINING CONTRACTS, MSCA, PROCUREMENT SYSTEMS, QUADREM

posted by MrK @ 4:52 PM