Maravi

(TALKZIMBABWE) Biti stalls US$6 million deal

Biti stalls US$6 million deal
TSM/TZG reporters
Sun, 17 Jan 2010 21:16:00 +0000

FINANCE Minister Tendai Biti is reportedly flouting state procurement procedures - a move seen as bent on paving the way for external interference in the country's Government system. Biti's move will stifle a US$6 million deal between Zimbabwe and the African Development Bank (ADB), according to reports from the capital.

It is understood the ministry is seeking to reverse tenders awarded to locals in favour of Western companies.

In 2008, Zimbabwe struck an agreement with ADB under which the financial institution would provide technical support to the country, including the purchase of information and communication technology equipment.

Tenders for the supply of the equipment were awarded to deserving indigenous companies.

However, the ministry is alleged to be now sidelining the local firms, leading to a row between the ministry and the State Procurement Board (SPB) with the latest case involving the proposed cancellation of a tender previously issued to an indigenous ICT company for the supply of more than 1,000 computers.

A report in the Sunday Mail claims that: "It is understood the ministry has invited quotations from MDC-T-linked companies, among them United Kingdom-based Crown Agents (Private) Limited.

The weekly paper reported that ADB country programme officer Dr Walter Odhiambo confirmed that the bank was consulting the relevant authorities to ascertain the legitimacy of the tender process.

“We are just questioning how the tender was awarded as it was done before we came on board," Dr Odhiambo was quoted as saying.

“This does not, however, mean we are interfering with the country’s tender process,” he said.

“That is why we are consulting with the relevant stakeholders. As soon as they clarify, we are ready to roll out the project.”

The Sunday Mail also claimed that some senior officials in the Ministry of Finance’s Department of Domestic and International Funding (DIF) "are rooting for Crown Agents."

"The company operated under the British banner between 1749 and 1997 after which it was 'privatised' and acted as a UK government company with mainly overseas business concerns.

"Sources say it comprised a group of people in the mould of some Rhodesians who took it upon themselves to go around the world to spread the British monarch's sphere of influence for financial and ideological reasons."

The World Bank and other multilateral agencies such as the International Labour Organisation (ILO) and International Organisation for Migration (IOM) are also allegedly providing technical support and consultancy services to ministries headed by MDC-T.

It is alleged that the principal director in the ministry, Judith Madzorera, had to call an urgent meeting last Friday in a bid to save the US$6 million ADB grant.

The meeting was attended by representatives from the ADB, Central Computing Services, SPB and the Ministry of Finance.

“It was a stormy meeting, which turned political with the SPB officials questioning the finance officials’ interest in the matter when it is the mandate of SPB to process tenders,” said the sources.

The sources said sharp differences emerged after the DIF made “serious and sinister” attempts to arm-twist the State Procurement Board (SPB) by seeking to compel it to reverse the computer supply tender it awarded to the local company.

Part of the department’s letter to the company reads: “It has come to our attention that procurement procedures for our co-operation partners ADB require that for every procurement phase the suppliers review their position reading product price and delivery.

“Could your office please kindly and urgently furnish our office with above stated information preferably by the end business day on 13 November 2009.”

SPB officials, however, argued that this would violate State procurement regulations. Documents at hand show that in July 2008, SPB awarded Tender Number CSC 2/2008: Supply and Delivery of 3 000 PCs to the local company.

It is also understood the company only supplied 409 computers, which were commissioned by Biti.

However, it emerged that the ministry was trying to sideline the company after it invited quotations from foreign companies, including Crown Agents (Private) Limited.

Officials in the SPB accused the Ministry of Finance of “violently refusing to honour the contract”.

They said the ministry was concocting “all sorts of stories” about the project’s funding.

“This wayward behaviour from this powerful ministry raises a number of questions. Is the ministry above the law?

“They disregard the result of a tender process presided over by the Government Tender Board.

“Whose Government are they working for?

“Why are we not promoting our local entrepreneurs? They disregard results of tender results and the State Procurement Act.

“We seem to be favouring dubious foreign companies like this United Kingdom-based outfit called Crown Agents.

“Are our tender laws and procedures being respected, I wonder?” fumed a senior SPB official.

This is not the first time that the Ministry of Finance has been accused to trying to undermine the SPB as last year the ministry tried to reverse a tender to supply inputs that had been awarded to a South African company called ASP.

It is understood that the ministry was accusing ASP of failing to honour its contract yet investigations later revealed that the South African company had failed to deliver following the ministry’s failure to provide funds in time.

Documents at hand show that when the Government called for tender for the procurement of inputs, ASP together with other companies submitted their bids. ASP went on to win the tender.

Impeccable sources say another company, AIG, that has roots in the trade union movement in Malawi and is closely linked to the MDC-T, submitted its bid about 20 minutes after the tender box had already been opened.

Although this was unprocedural, it is understood that the Minister of Finance, Tendai Biti, wrote to the Minister Agriculture, Mechanisation and Irrigation Development, Dr Joseph Made, saying there should be a re-tender.

Mr Biti’s letter was copied to the permanent secretary in the agricultural ministry, Ngoni Masoka.

“Whilst Ministry of Finance tried to raise a technical argument, in reality these were reservations from senior officials in the ministry who are angry that ASP exposed their machinations in delaying the supply of inputs to farmers in order to give an urge to NGO-supplied inputs.

The ministry only backed down after officials in the Ministry of Agriculture said they would have none of it,” said a source privy to the tender process.

Labels: COLOUR REVOLUTIONS, CORRUPTION, PROCUREMENT SYSTEMS, TENDAI BITI

posted by MrK @ 5:38 AM