Dora's directive to cancel radar tender was irregular - ZPPA

Dora's directive to cancel radar tender was irregular - ZPPA
By Mwala Kalaluka
Tue 20 Dec. 2011, 13:58 CAT

THE Zambia Public Procurement Authority (ZPPA) says former communication minister Dora Siliya's directive to Dr Eustern Mambwe to cancel a radar system tender awarded to Thales Air Systems SA was irregular.

Submitting to the Sebastian Zulu-chaired Commission of Inquiry on the contract for the supply, delivery, installation and commissioning of the Zambia Air Traffic Management Surveillance Radar System ZATM-RADAR at two international airports, ZPPA director general Samuel Chibuye said Siliya acted out of her jurisdiction.

This was during a hearing at Lusaka's Mulungushi International Conference Centre yesterday morning.

Chibuye said Dr Mambwe, who was the permanent secretary in the ministry, in a letter dated November 6, 2008 sought ZPPA's authority to award the ZATM-RADAR contract to Thales Air Systems SA at a tender sum of 9,050,168.00 Euros about K47 billion.

Chibuye said the Central Tender Committee at its meeting of December 5, 2008 granted Dr Mambwe authority to award the contract to Thales Air Systems SA at the above-mentioned sum including a four-month delivery period.

"However, on 6 January 2009, the controlling officer, ministry of communications and transport wrote to the ZNTB stating that he had been directed by the honourable minister of communications and transport to cancel the tender and re-invite it to be only open to manufacturers of radars and not middle men," Chibuye said.

At this point Zulu asked Chibuye if Siliya had the authority to direct the ZPPA to cancel the tender and Chibuye replied: "The minister has no authority to instruct ZPPA or ZNTB at that time to cancel a tender which has been duly awarded in accordance with the solicitation document."

Zulu then asked Chibuye if Siliya's instruction was irregular and he replied in the affirmative.

Chibuye said only the permanent secretary was legally allowed to liaise with ZPPA over matters of procurement.

"The minister can't get involved in the procurement process at all," Chibuye said.

He said ZPPA in response to Siliya's cancellation directive found no compelling reasons to justify the cancellation of the tender.

Chibuye said in another letter dated September 28, 2010 that the then ministry of communications and transport permanent secretary, Dominic Sichinga, told ZPPA that initial approval granted to award the contracts did not include the other components representing Thales ATM.

Chibuye said Thales ATM previously Flight Craft Aviation quoted the other contract amounts of 128,619.00 Euros, US$859,000.00 and 16,615,697.00 South African Rands.

"In the same letter, the controlling officer stated that the above amounts be included in the re-validation of the authority as they represented the local works associated to the contract," Chibuye said.

He said ZPPA declined to vary the contract as per Sichinga's request because the ministry did not provide justification for variation of the initial contract sum to increase it by other amounts.

But Chibuye apologised to the nation saying the above anomaly could have been avoided if the ZPPA officer who opened the bids did not just call out one name.

Chibuye said there was negligence on the part of the officer but he also wished the ministry and Thales Air Systems had been able to detect the inconsistencies.

"ZPPA approved a bid that was erroneously read out but they somehow missed the aspect of a joint venture," Chibuye said.

At this point Zulu said former ZPPA director general David Kapitolo must be summoned to appear before the Commission tomorrow Wednesday together with former ZPPA director in-charge of goods and services, Manus Simwanza.

And on the tender for additional requirements to operate the already re-activated sadar system at the Kenneth Kaunda International Airport, Chibuye said the ministry of communications on March 16, 2010 sought a waiver from open bidding to directly bid Selex Sistemi Integrati.

Chibuye said this Italian company, Selex, had made an offer to repair the radar for free on November 4, 2008.

Chibuye said on April 20, 2010 ZPPA granted the ministry a ‘no objection' to go ahead and single-source Selex Sistemi Integrati on the above tender.

Chibuye said in issuing the ‘no objection' to single-source, ZPPA relied on the expertise of technocrats within the ministry and did not undertake its own independent technical assessment.

He further said he was not aware that Selex was a late bidder on the tender to operationalise the already re-activated radar at the KK International Airport before it offered to repair the same radar for free.