Maravi

Govt’s purchase of hearses was unusual – PAC

Govt’s purchase of hearses was unusual – PAC
By Namatama Mundia
Wed 14 Apr. 2010, 04:10 CAT

The hearses were supposed to be purchased at US $9,000 per vehicle according to the manufacturer's invoice but the government ended up paying US $29,000
THE parliamentary public accounts committee (PAC)has observed that the purchase of 100 hearses by the government was unusual.

The hearses were supposed to be purchased at US $9,000 per vehicle according to the manufacturer's invoice but the government ended up paying US $29,000 for each hearse.

PAC chairperson Emmanuel Hachipuka made the observations after local government and housing permanent secretary Timothy Hakuyu and his delegation failed to give the committee satisfactory responses to the audit queries on the purchase of 100 hearses on Monday.

Hachipuka, who is Mbabala UPND member of parliament, said the purchase of the 100 hearses at a cost of K14 billion was not a usual purchase.

He said whoever pushed for the purchase of the 100 hearses was very clear because there was no way the government could spend huge sums of money on inferior vehicles.

Hachipuka wondered what the ministry's interest was in purchasing the vehicles, which were not even tested.

“If the bid was a normal one, why did the government ask for tax exemption? Why did the ministry take responsibility for tax exemptions?” asked Hachipuka as he read a letter written to Zambia Revenue Authority (ZRA) to request for tax exemption in part.

He also questioned the criteria which were used to purchase the 100 hearses.
“I can't understand why 100 hearses,” Hachipuka remarked.

Committee member Charles Milupi, who is Luena Independent member of parliament, said there was abuse of funds in the procurement of the 100 hearses.

“These hearses are not candles, the response of the ministry is essentially trying to shift blame to Zambia National Tender Board now Zambia Public Procurement Authority (ZPPA) who evaluated the bids,” Milupi said.

He noted that it appeared ZPPA was under pressure from the local government ministry to award a contract to Top Motors who supplied the hearses after engaging a Chinese supplier.

Milupi added that ZPPA raised a lot of issues on the procurement of the hearses, which the local government ministry ignored and he suspected that there was connivance in the purchasing process.

But Hakuyu, who had a tough time as he tried to explain to the committee, said there was no connivance in the whole process.

“I can't say there was connivance, I see no connivance, procedure was followed, tenders were floated and the cheapest bidder Top Motors was awarded the contract,” Hakuyu said.

However, Hachipuka said the committee would deliberate on the matter and make recommendations to Parliament.

“There are certain specific issues surrounding the procurement of hearses and the 150 vehicles for chiefs and we will make recommendations to the House,” said Hachipuka.

Labels: CORRUPTION, EMMANUEL HACHIPUKA, PAC

posted by MrK @ 6:02 AM