RDA warns Chinese resisting to sub-contract road works
By Chiwoyu Sinyangwe
Tue 27 Aug. 2013, 14:00 CAT
CHINESE contractors are resisting to sub-contract the mandatory 20 per cent of their road contracts to local contractors, reveals Road Development Agency chief executive officer Charles Mushota.
Mushota has threatened to terminate road contracts of foreign contractors that refuse to sub-contract 20 per cent of their road contracts to local contractors.
The PF regime has made it mandatory that all government contracts being implemented in the road sector, with a specific emphasis on the current 8,000 Link Zambia Project, must be 20 per cent locally sub-contracted to build capacity of indigenous local engineers and economically empower people .
Mushota revealed that while most foreign contractors have had no problems implementing the requirements, some Chinese contractors were resisting working with Zambians.
He cited AVIC International Project Engineering Company, the company contracted to rehabilitate about 400 kilometres of Lusaaka roads in a project called L400 and Sinohydro, as some of the Chinese firms he chided.
The L400 which is a four-year project is expected to see massive transformation of existing city roads and create thousands of jobs for unemployed youth.
"We did receive some reports in the last two days that some contractors were resisting to this," Mushota said last week during a public discussion in Lusaka.
"But to those which were brought to my attention and I would not be shy to mention the two companies - one of the company is the one contracted to do the L400 and I personally called the man in charge. I didn't have a nice time with him, I should admit."
He warned that he would terminate road contracts where foreign contractors had refused to embed the right threshold of local components in their works.
"Even if L400 was a loan from the Eximbank of China, I think I was ready to advise the government that if this is the way to go, they would rather do away with L400. And I should report that I received a call from China, the principals of L400, were trying to be very apologetic and I told them that God gave you two ears so that you can listen more and talk less but you its opposite and I think those are on L400, if you approach them, I think the attitude is different," said Mushota.
"The other company where I got a report was Sino hydro. I phoned Sinohydro and I gave them my piece. Also, I did instruct my director construction and rehabilitation that we should meet all the contractors because the resistance is not from all contractors but mostly it's from the Chinese contractors. They are a couple of success stories but at the same time, there is some resistance from the contractors but I can assure you that we are going to deal with them because the government has told us to implement the policy..."
Labels: CHARLES MUSHOTA, CHINESE, CONTRACTORS, ROADS
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Corruption has tarnished local contractors' image - Luhanga
By Christopher Miti in Chipata
Sun 23 June 2013, 14:00 CAT
ACTING Eastern Province deputy permanent secretary Zachariah Luhanga says the image of the local construction industry has been tarnished by those who think they can get contracts through underhand methods.
And a representative of the Eastern Province based local contractors, Salatiel Tembo, says the local contractors are lacking in many areas.
Officiating at the closure of a one week Eastern Province contractors' capacity building training workshop at Luangwa House on Friday, Luhanga, who represented provincial permanent secretary Bert Mushala, said the government would ensure transparency in the awarding of contracts.
He said government would only award contracts on merit.
"You do not need to know the authorities for you to get contracts or to solicit for contracts. This government has a zero tolerance policy on corruption," Luhanga said.
He said in a quest to empower citizens, the government had put in place several legislation and policies like the 20 per cent sub-contracting policy that government was now fully implementing through Citizens Economic Empowerment Commission (CEEC).
"The government is working tirelessly to empower the local contractors. All contracts/projects that are being advertised and awarded in the recent past and now have this clause enshrined and strictly adhered to in road, building or any other construction project in Zambia. We want you to benefit and eventually grow and graduate from being small and medium scale contractors to large scale contractors," Luhanga said.
And Tembo said the training had been enlightening because the local contractors were lacking in a number of areas going by the course content that they had gone through.
He hoped that after the training they would not be a serious disgrace.
He commended the National Council for Construction for enlightening local contractors.
Provincial buildings officer Marko Mtonga hoped the training would address previous problems where contracts were allegedly being awarded to the same contracts.
Mtonga urged the contractors to act like ambassadors by sharing what they had learnt with others.
Labels: CONTRACTORS, CORRUPTION, ZACHARIAH LUHANGA
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NCC highlights need for local contractors
By Kabanda Chulu
Tue 04 Sep. 2012, 19:40 CAT
THERE is a need to build capacity of local contractors if they are to compete effectively against foreign investors, says National Council for Construction (NCC) executive director Sylvester Mashamba.
In an interview in Lusaka, Dr Mashamba said the construction industry had remained among the biggest growth sectors of the Zambian economy, recording an average growth rate of over 17 per cent per annum over the last decade.
"But if the industry is doing well, who is benefiting because most Zambian
contractors and consultants will tell you they have not benefited since most works are given to foreigners. We need to build capacity so that in subsequent years we should be in a position to do most jobs being done by foreigners," Dr Mashamba said.
"Literally speaking, the industry is doing well but we have lost opportunities to provide for policies to build capacity on those successes hence the consequences are that most works are done by foreigners but in our (NCC) strategic plan, we have deliberate policies aimed at training certain contractors who we feel in the next three to five years, if supported continuously in terms of being given works, should be to able to build on financial resources and purchase equipment and plant machinery."
He said the 20 per cent mandatory requirement that should be given to local contractors in any road contract was commendable but required strict implementation.
"Ideas to promote local industry have been there for many years; for example, in 1969, KK (Kenneth Kaunda) pronounced that works amounting to K100,000 then would be reserved for Zambians and we did well but somehow we lost it and allowed foreign contractors to come in," Dr Mashamba said.
"As much as we support the 20 per cent requirement, what is key is implementation because even under the NCC Act, provisions are there to protect local industry but people tend to deliberately avoid implementation."
He also challenged Zambian contractors to rise to the occasion and execute quality works.
"We should not fail to implement laws aimed at promoting local contractors so that in the coming years we should point and say here are Zambians who have been promoted otherwise we shall have a situation where we have good pronouncements with no action," Dr Mashamba said.
"But also, there is this perception that tends to make clients think that giving works to foreigners is better because locals do not offer assurance of time, costs and quality of work."
Labels: CONTRACTORS, NCC, SYLVESTER MASHAMBA
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Turkey won't interfere in TAV deal - Evirgen
By Kombe Chimpinde in Ankara, Turkey
Mon 14 May 2012, 10:50 CAT
TURKEY'S advisor to the Prime Minister says his government will not interfere in the matter where the Zambian government has halted a business contract given to private Turkish firm, TAV, to refurbish the Kenneth Kaunda International Airport.
In an interview, Yavuz Evirgen said TAV was a private company of international acclaim but that it was up to the Zambian government whether or not to proceed on the agreement entered into with the MMD government.
"They (TAV) are operating the airport in Istanbul, in Ankara, in many other cities' international airports. They want to reconstruct and rebuild Kenneth Kaunda International Airport in Zambia and run it for 50 years. It is a big project," Evirgen said. "This is happening in many countries like our own airport in Istanbul here, they (TAV) operate for a period of time and then transfer (to government) so it is very common. They build with their own money and then they operate for 50 years and then get their money and profit before they transfer the airport back to government."
He said the project's implementation in Zambia was, however, dependent on the government's policies and discretion.
"It's the preference of the state, if they want it they can do it or not but as far as I am concerned, this is what the company does, everywhere they operate as a joint venture even in Saudi Arabia. This is international practice," Evirgen said.
He said if allowed, the contract would be a viable and less costly venture, adding that public private partnership was the new way of accelerating development in many places in the world.
Evirgen also disclosed that Turkey had recorded US$120 million trade volume between the two countries mainly from exports of various goods from Zambia to Turkey.
He said his government has been in talks to map out ways in which to enhance Zambia's construction, tourism and health sectors.
"We are happy about improvement of relations with Zambia recently," he said.
"In February 2011, the milestone was the visit of the former Republican president Rupiah Banda to Turkey in 2010 to develop relations with the two countries. There is also an invitation of the new President Sata to visit (Turkey). Of course it will depend on the schedule of your government."
Evirgen also said there were plans by the government to establish a Zambian embassy in Turkey to cement relations.
"Opening of the Turkey embassy in 2011 is a sign of promising relations between the two countries. We are aware that there is also a decision by the new government to open an embassy in Turkey. We just expect the realisation of this wish by the government," said Evirgen.
"…There is a trade imbalance usually when you start so at same point we will reach a balance. So there are some other trade agreements."
Among some of the agreements signed between Turkey and the former government was on trade and economic cooperation.
Labels: AIRPORTS, CONTRACTORS
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North anti-graft team summons Simfukwe
THE Northern Province taskforce on corruption has summoned former provincial permanent secretary Mwalimu Simfukwe and his former procurement officials for questioning.
The task force is probing the alleged awarding of a tender worth K1.8billion to Pamoja Contractors and General Suppliers for the construction of culverts in Isoka, Chinsali, Mpulungu and Kaputa.
The contract exceeded the K500 million threshold, which was beyond what the permanent secretary and his provincial tender committee could approve.
This should have been referred to the Zambia Public Procurement Authority (ZPPA) for consent or objection.
Also being probed is the alleged awarding of a contract to Pachi Business Solutions worth K700 million for the supply of building materials for various projects in the province.
This contract was awarded in circumstances that allegedly flouted tender procedures.
Taskforce chairperson, who is Northern Province police commissioner, Mary Chikwanda, said she was concerned that Mr Simfukwe appeared to be evading investigators by giving excuses.
But Mr Simfukwe said in an interview yesterday that he would make himself available on Monday next week in the company of his lawyers.
Mrs Chikwanda said the former permanent secretary was earlier expected to appear before the taskforce in Kasama last week but had not done so.
She said Mr Simfukwe demanded a formal call-out to be faxed to him and promised to give his number as he was in Mbala, but allegedly failed to do so.
The taskforce is also investigating the awarding of contract to Jubeto Construction worth K941 million and Kahema Contractors that was given a tender worth K755, 780,000.00.
The contracts were for the supply of building materials for the construction of Mwenewisi Bridge in Mafinga District under the Road Development Agency (RDA).
The other tender under probe was awarded to Cornerstone Heritage worth K850 million for the supply and installation of traffic lights in Kasama.
Mrs Chikwanda said the taskforce is also investigating allegations that, while Mr Simfukwe was in office, he ran a cattle restocking exercise for Mbesuma Ranch and allegedly diverted cattle meant for the ranch in Chinsali to his farm in Mbala.
By Times Reporter
Labels: CONTRACTORS, CORRUPTION, MWALIMU SIMFUKWE, ROADS
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Mbulakulima lashes out at shoddy works by contractors
By Darious Kapembwa in Kitwe
Thu 26 Aug. 2010, 18:40 CAT
COPPERBELT minister Mwansa Mbulakulima has said contractors doing shoddy works are frustrating the government’s quest to provide good infrastructure. And Mbulakulima has said the effects of corruption go beyond benefiting the people involved in the vice but affects the poor people gravely.
During a Construction Sector Transparency (CoST) Initiative workshop in Kitwe yesterday, Mbulakulima, who was represented by provincial deputy permanent secretary Christopher Mutembo, said there was need to promote accountability and transparency in the construction sector.
The workshop was called for small and medium-scale contractors on the Copperbelt.
Mbulakulima said the idea of the initiative CoST funded by the British Department for International Development (DFID) would help to monitor the processing of awarding contracts to contractors that would enhance professionalism in the construction sector.
Mbulakulima said the government was committed to delivering good infrastructure but was frustrated by contractors doing shoddy work.
“The effects of corruption affect the poor very much because they are the ones that remain using these poorly constructed infrastructure. Contractors that are doing shoddy works want to remain with change in their pockets or make more money out of substandard works because when you compare buildings that were constructed in 1930 to today’s, there is a huge difference,” said Mbulakulima.
Labels: CONTRACTORS, MWANSA MBULAKULIMA, ROADS
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Know how your money is used
By Editor
Sun 27 Dec. 2009, 04:01 CAT
Without the lifeblood of citizen action, we will not have any meaningful democracy in this country. If citizen participation in the affairs of our country is not strengthened, even this democratic opening that we are today witnessing will start to weaken and disappear.
It is therefore important for the Zambian people to pay a keen interest to the call being made by Kalungu Sampa of Transparency International Zambia for them to take a keen interest in knowing how public funds are being used. Truly Zambians should be curious about what is going on in their country.
As we have stated before, having democratic institutions and even a democratic Constitution and other laws guarantees us nothing by itself. It offers instead the opportunity to succeed as well as the risk of failure. This is then both a promise and a challenge. It is a promise in the sense that as free human beings, working together, we can govern ourselves in a manner that will serve our aspirations for personal freedom, economic opportunity and social justice. It is a challenge because the success of the democratic enterprise rests upon the shoulders of its citizens and no one else.
Probably this is why government of and by the people means that citizens of a country share in its benefits and in its burdens. As free human beings, when we fail, we shouldn’t blame anybody else but ourselves. It is us, individually and collectively, who finally must take responsibility for the fate of our country, a country in which we ourselves have chosen to live. In the end, we get the government we deserve.
Each one of us as citizens of this country, has a duty to hold accountable those who we have tasked to manage the affairs, the resources of our country. If we don’t do that, it means we are failing in our duties as citizens; we are behaving in an irresponsible way.
To try and hold accountable our representatives in government and other state institutions is not a crime, should not be criminalised – it is not treason. Even the most trusted government, the most trusted politician – be it a Mandela, a Kaunda or a Fidel – needs to be held accountable. The Russians say “trust but verify”. How public funds are spent is a matter that needs verification all the time; and all transactions involving public funds need to be subjected to public scrutiny.
Moreover, there is no government that can be said to be a good one if it does not rest upon the principle that governments exist to serve the people; the people do not exist to serve the government. In other words, the people are citizens of the democratic state, not its subjects. While the state should protect the rights of citizens, in return, the citizens should give the state their loyalty. But under crooked, corrupt and tyrannical governments, the state, as an entity separate from the society, demands loyalty and service from its people without any reciprocal obligation to secure their consent for its actions.
Citizens in a democracy enjoy the right to participate freely in the public life of their society and to question the decisions and actions of their representatives, whether elected or nominated by those they have elected. At the same time, citizens must accept the responsibility that such participation entails: educating themselves about the issues, demonstrating tolerance in dealing with those holding opposing views and compromising when necessary to reach agreement.
Broadly speaking, these responsibilities of citizens entail participating in the democratic processes to ensure its functioning. At a minimum, citizens should educate themselves about the critical issues confronting their society – if only to vote intelligently for candidates running for high office.
The essence of democratic action is the active, freely chosen participation of its citizens in the public life of their community and nation. Without this broad, sustaining participation, democracy will begin to wither and become the preserve of a small, select number of groups and organisations. But with the active engagement of individuals across the spectrum of society, democracies can wither the inevitable economic and political storms that sweep over every society, without sacrificing the freedoms and rights that they have sworn to uphold.
Active involvement in public life is often narrowly defined as the struggle for political office. But citizen participation in a democratic society is much broader than just taking part in election contests. Whatever the level of their contribution, a healthy democracy depends upon the continuing, informed participation of the broad range of its citizens. In this sense, democracy can be said to be a process, a way of living and working together. It is evolutionary, not static. It requires cooperation, compromise and tolerance among all citizens. Making it work is hard, not easy. Freedom means responsibility, not freedom from responsibility.
Democracies embodies ideals of freedom and self-expression, but it is also clear-eyed about human nature. It does not demand that citizens be universally virtuous, only that they will be responsible. As American theologian Reinhold Niebuhr said: “Man’s capacity for justice makes democracy possible, but man’s inclination to injustice makes democracy necessary.”
Clearly, democracy is anchored on common good, on love and truth. Truth needs to be sought, found and expressed for people to have meaningful participation in the affairs of their country, but democracy in its turn needs to be understood, confirmed and practised in the light of truth. In this way, not only do we do a service to democracy enlightened by truth, but we also help giving credibility to truth, demonstrating its persuasive and authenticating power in the practical setting of social living. This is a matter of no small account today, in a social and cultural context which relativises truth often paying little heed to it and showing increasing reluctance to acknowledge it’s existence.
Truth, by enabling men and women to let go of their subjective opinions and impressions, allows them to move beyond cultural and historical limitations and to come together in the assessment of the value and substance of things. Truth opens and unites our minds. Without truth, citizen participation in the governance of the country is confined to a narrow field devoid of relations. It is excluded from the plans and processes of promoting human development of universal range, in dialogue between knowledge and practices.
And democracy without love will not work, will not deliver anything of value. To love someone is to desire that person’s good and to take effective steps to secure it. Besides the good of the individual, there is a good that is linked to living in society: the common good. It is the good of “all of us”, made up of individuals, families and intermediate groups who together constitute society, constitute our nation.
It is a good that is sought not for its own sake, but for the people who belong to the social community and who can only really and affectively pursue their good within it. Therefore, to desire the common good and strive towards it is a requirement of democratic action, and indeed of justice and all citizen participation. To take a stand for the common good is on the one hand to be solicitous for, and on the other hand to avail oneself of, that complex of institutions that give structure to the life of society, juridically, civilly, politically and culturally. The more we strive to secure a common good corresponding to the real needs of our neighbours, the more effectively we love them.
Every citizen is therefore called upon to participate in the affairs of our country, of our nation in a manner corresponding to his vocation and according to the degree of influence he wields. We therefore join the call made by Sampa and urge all Zambians to reflect deeply about participation and about taking a keen interest in the affairs of their country on how public funds are being used.
Labels: CONTRACTORS, PROCUREMENT SYSTEMS, TIZ
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COMMENT - 'Government has no sufficient funds' so tax the mines!
We treat both foreign, local contractors equally- Saili
Tuesday, November 10, 2009, 10:06
The Road Development Agency (RDA) has dismissed claims that it was favouring foreign contractors in awarding contracts for road construction.
RDA head of public relation, Loyce Saili said the agency does not favour any contractors when awarding contracts but was offering equal opportunities for local and foreign contractors.
Mrs. Saili said all contractors bidding to win road construction contract were given an equal playing field but noted that local contractors needed to improve their capacity in terms of technical, equipment and trained personnel.
She disclosed that some local contractors have failed to execute projects they were given in certain parts of the country.
She said there was need for local contractors to partner with foreign contractors to enhance their capacity in road construction and rehabilitation in the country.
Mrs. Saili has meanwhile said the agency has embarked on rehabilitating and upgrading city roads in Lusaka to address the problem of congestion.
She said disclosed that the agency recently constructed the Lumumba-Kamwala by-pass road at a cost of over K10 billion as a way of easing traffic congestion in the city.
Mrs. Saili said the agency was also rehabilitating roads in Ibex hill, Avondale and Twin Palm road at a cost of over K57 billion.
Commenting on the Ndola-Mufulira road, Mrs. Saili said the road requires re-construction but noted that it will gobble huge sums of money.
She said the estimated cost per kilometer of the Ndola-Mufulira road is K3.5 billion.
She said currently, government has no sufficient funds to reconstruct the road noting that it would be worked on next year when funds are secured.
Mrs. Saili explained that most urban roads on the Copperbelt and other parts of the country require major overhaul, mainly rehabilitation and reconstruction work.
She said the road network of urban roads that needed to be worked on was around 5,000 kilometers at the rate of over K3 billion per kilometer.
Mrs. Saili however observed that some contractors, who have been engaged by RDA to do work, have performed very well while some have not performed satisfactorily.
She said the contractors that have not performed well will have their contracts terminated for poor performance.
She explained that the RDA does not take pride in terminating contracts it was obliged to ensure that contractors met the required quality of roads which will give tax payers value for their money.
Mrs. Saili said the whole K1.3 trillion that was budgeted in the 2009 RDA annual work plan for roads, has been used and roads been.
ZANIS
Labels: CONTRACTORS, ROAD DEVELOPMENT AGENCY, ROADS
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Chadiza MP warns contractors against doing shoddy works
Written by Christopher Miti in Chipata
Tuesday, September 15, 2009 6:21:04 PM
CHADIZA MMD member of parliament Allan Mbewe has said contractors who do shoddy works will not be given contracts in Chadiza. Featuring on Radio Maria on Friday last week, Mbewe, who is also energy deputy minister, said most of the roads in Chadiza were in a bad state.
"First of all, I don't want contractors who do shoddy works in Chadiza. If a contractor does a bad job that has not satisfied me and the people, then that contractor is not supposed to be paid. Now if somebody issues a certificate to certify that the work has been done and money should be given while the contractor has done a bad job, that person is supposed to be visited by the law," he said.
Mbewe said contractors who did shoddy works were not supposed to be given money.
"People in the community are supposed to see to it that a contractor is doing a good job. The headmen, civic leaders and many others are supposed to tell us that the job has not been properly done. You know, according to the law, contractors who do shoddy works are not supposed to be awarded other contracts because such contractors just want to steal from the government. Those who are making bridges, they should make good bridges, those who are repairing roads, they should do good jobs. If they don't they are not supposed to be given money and another contract," he said.
Mbewe said the Road Development Agency (RDA) would soon start repairing the Chipata-Chadiza road.
Mbewe said the road making equipment would also be dispatched to Chadiza to grade dilapidated roads.
And Mbewe said the government has allocated K1.7 billion for the third phase of the construction of the district hospital.
"We want this hospital to be opened before March next year so that people could be helped because people in Chadiza have been facing problems for a long time in as far as hospitals are concerned," said Mbewe.
Labels: ALLAN MBEWE, CHADIZA, CONTRACTORS
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Road constructors call for policy on emerging contractors
Written by Kabanda Chulu
Saturday, August 22, 2009 5:25:11 AM
ROAD construction graduates at the National Council for Construction (NCC) yesterday challenged the government to create a deliberate policy to
compel large international firms to sub-contract a fraction of their contracts to local emerging contractors.
During a graduation ceremony of small scale labour based road rehabilitation contractors in Lusaka at the NCC training school and speaking on behalf of the graduates Litemo Limited of Kaoma director Kenneth Chinganzi said most advertisements for construction jobs disqualify the last two grades [five and six] where most new companies were categorised.
"We are aware that most jobs are beyond the capability, scope and management of these grades and such works can only be managed by competently by those in higher grades, who are predominantly international firms," Chinganzi said.
"However, government should create a deliberate policy to compel international companies to sub-contract a fraction of such complex jobs to the local emerging contractors so that the country can benefit in technology transfer and build of financial bases of those emerging contractors."
He said the recent acquired equipment from China was underutilised.
"Government should allow us access the pieces of equipment it recently acquired from China at affordable rates and within five years local contractors will be financially sound to be able to import such equipment instead of the state," said Chinganzi.
And DANIDA technical adviser Mike Knowles said the Danish government was committed to support the road sector in Zambia and would provide K369.8 billion [DKK 400 million] for rehabilitation of selected main and district roads in Luapula and Western provinces.
And director of buildings Whiteson Ngulube said the construction sector had a major influence on Zambia's development whose economic activities depends on the state of infrastructure, especially the road network.
Labels: CONTRACTORS, ROADS
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Workers complain against abusive Chinese Contractor
Monday, August 17, 2009, 15:32
Itezhi-tezhi High School construction workers yesterday staged a protest at the District Commissioner’s office over alleged beatings and other bad conditions which a Chinese company has subjected them to.
More than twenty construction workers marched ,amid grumbling ,to the District Commissioner’s home. They were advised to go to the office where the Acting DC Hampende Hichilema would address them after ten minutes.
Ndonji Crispin who spoke on behalf of the construction workers complained about the ill-treatment by supervisors at Hua Tiang, a Chinese company which has been awarded the contract to finish phase two of Itezhi-tezhi High school.
“The Chinese supervising us at the construction site are beating us with sticks and making us work through out the week without resting, we report at 07:00 and knock off around 18:00 hours” he said.
He said that when workers complain of being overworked, they are insulted and told to leave their jobs because they claim that they can bring people from China to do the same job.
“We are working like slaves or foreigners in our own country, we do not have protective shoes, and they bought us canvass shoes instead of boots which were recommended by the inspectors”, he said.
Mr. Ndonji said that when the company gives them protective clothing such as overalls, their NRCs are grabbed from them, a situation which makes it difficult for them to access services such as getting money from banks or the post office.
He said that the Chinese contractors do not recognize sick leave and do not care whether someone falls sick during the course of their duty.
“When a worker falls sick, they just say go to the hospital, they do not help with anything and more over they deduct pay from the days you will be sick” he said.
He further said that the workers have been subjected to extremely low wages of K7, 000 per day adding that they are subjected to inhumane and demeaning treatment. He complained that the workers are made to heap 100 wheelbarrows of crushed stone every day.
Meanwhile Acting Itezhi-tezhi District Commissioner Hampende Hichilema has assured the construction workers that his office would engage the Chinese company on the matters they had raised.
He said that his office would call the management on Tuesday to discuss the alleged beatings and inhumane conditions under which the workers are reported to be working at the High School.
ZANIS
Labels: CHINESE, CONSTRUCTION, CONTRACTORS, HAMPENDE HICHILEMA, LABOUR
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‘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
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‘Road works lack supervision’
By Times Reporter
THE Government is not getting value for money on road projects because of the continued shoddy works mainly due to lack of supervision, Deputy Finance and National Planning Minister, Chileshe Kapwepwe has said.
Ms Kapwepwe has challenged stakeholders in the sector to be professional and work together in supporting Government’s efforts in improving communication through a quality road network.
She said this at a joint donor forum at Chaminuka Lodge in Lusaka at the weekend.
She said the Government was committed to improving the road network as evidenced by the sufficient allocation of money to the sector and the acquisition of road-making equipment, which had been distributed to all the provinces.
“The Government, and particularly my ministry, is very concerned with the poor workmanship by some contractors partly due to poor supervision.
“This is clear evidence that the Government is not receiving value for money. I must emphasise here that quality supervision of works is a critical element in ensuring the attainment of a good quality road network,” she said.
Ms Kapwepwe called upon stakeholders including road agencies, contractors, and consultants to exhibit professionalism and work together in harmony.
She said a quality road network was cardinal to national development, hence the need to ensure that roads were worked on properly.
“In terms of support to the road sector, the Government remains committed to providing more resources in the medium to long-term so that the intended objective of improving the country’s road network is attained,” she said.
She noted that the implementation of the US$1.6 billion Roadsip II was now halfway in terms of the implementation period.
In terms of challenges, Ms Kapwepwe said funding had remained critical, hence the need for stakeholders to utilise the resources prudently and prioritise implementation of projects.
Labels: CHILESHE KAPWEPWE, CONTRACTORS, INFRASTRUCTURE, ROADS
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Mulongoti warns road contractors against shoddy works
Written by Moses Kuwema in Mansa
Thursday, April 02, 2009 3:23:49 PM
WORKS and supply minister Mike Mulongoti has threatened to terminate contracts of local contractors that fail to fulfill their obligations.
Mulongoti, who is on a tour of road projects in Northern and Luapula provinces, on Tuesday said the government would soon introduce an internal monitoring and audit unit under the Road Development Agency (RDA) that would ensure the agency pursues contractors that fail to meet their contractual obligations.
"It is sad that some roads have got grass by the road side. The same attitude that you have at your homes where you live, that's the attitude that I have witnessed with the roads," Mulongoti said during a meeting with Luapula-based local contractors.
He said the government wanted value for the money it pays to contractors.
"Most of you just want to do quick things, you should be ashamed of yourself. Where a road requires 10 bags of cement, you use five and within a short period cracks start developing and when you are asked, you say you don't know. But we want to change that so this time, as soon as the contract is awarded, the RDA will follow you and you will have no peace, the honeymoon is over. We will not hesitate to enforce penalties in contracts. So if you don't want to be pursued, stay out of government contracts," he said.
Mulongoti said the government had sufficient lawyers who would be able to follow contractors that fail to perform.
"I'm very disappointed. I found some abandoned projects in Kaputa and you [contractors] are even going round the street that you are a contractor, you are just a thief, that's your title," he said.
Mulongoti said the government would want most Zambians to get sub-contracts of bigger projects but he wondered how possible that could be if the contractors were unreliable.
"Some of you vanish after being paid. The government is ready to support you but if you show dishonest behaviour then you are a risk to government," he said.
He said 50 per cent of the money that was allocated to Luapula Province was spent on local contractors.
"So don't leave a trail of misery by getting money and vanishing because some assignments are not very complex but it is just the attitude, sometimes you tender for jobs when you don't even have equipment. We are interested in your performance but if you are being dishonest, you will end up having an innocent man Rupiah Banda being called names," Mulongoti added.
Mulongoti, who said the government would soon start publishing names of contractors that failed to perform in the media, added that it was unfair that politicians were insulted on a daily basis and yet the people entrusted to do the road works were not working.
And one of the local contractors Ireen Chilufya, who is also managing director of ICM general dealers, appealed to the government to reintroduce the advance payment policy.
In response to Chilufya's appeal, RDA executive director Erasmus Chilundika said the issue of advance payment for contractors was being addressed.
Chilundika said the payments would be well regulated because the agency wanted contractors to indicate what items had been bought with the money.
Labels: CONTRACTORS, INFRASTRUCTURE, MIKE MULONGOTI, ROADS
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Construction boby laments ban on advance payments to contractors
Written by Florence Bupe
Wednesday, February 04, 2009 11:08:57 AM
THE National Construction Council (NCC) has said
the banning of advance payments to contractors has increased overall construction costs by about 40 per cent.
And the council has called for massive investments in the construction sector as a guaranteed measure for job creation.
NCC executive director Dr Sylvester Mashamba said
the decision by government to discontinue with advance payments had pushed contractors to resort to high rate borrowing to finance their works.
“The government’s decision to ban advance payments to contractors also had the adverse effect of increasing overall construction costs by as much as 30 to 40 per cent as contractors resorted to high rate bank borrowing to finance their projects,” Dr Mashamba said.
He also noted that the ongoing global financial crisis was posing a great challenge to the country’s construction sector.
“The year ended with the global credit crunch, which was like the last nail in Zambia’s construction industry coffin,” he said.
Dr Mashamba added that the decision by the government to cancel the hosting of the 2011 All-Africa games contributed negatively to the woes of the Zambian construction industry.
He said there was need to scale up construction activities if the provision of various social amenities was to be adequately met.
“There is definitely need for increased construction activities if the provision of water and sanitation, railways, roads and other vital facilities are to be realised. The construction industry is very significant to the attainment of development aspirations in any country,” he said.
Dr Mashamba noted that the construction industry outlook for 2009 was bleak under the prevailing global financial challenges.
“From the outset, the prospects for the Zambian construction industry in 2009 and beyond, given the current economic circumstances, are not good especially given the experiences in the past,” he said.
And Dr Mashamba emphasised the importance of the construction industry in curbing the challenge of high unemployment levels in the country.
“The construction industry is credited for being one industry which is very labour intensive, thus massive investment in this sector always creates massive job opportunities at a time when most sectors will be laying off workers,” Dr Mashamba said.
“It is important to remember, however, that for this economic theory to succeed, you need to have a very low import content construction industry which also imports very little foreign labour, otherwise you end up importing unemployment.”
He observed that the foreign labour content for Zambia was still high and that pumping money into the industry as a stimulus to address the economic recession would backfire.
“Addressing the current global recession requires planning and understanding the forces at play. The construction industry offers the best instrument for addressing the recession problem. We should further be reminded that heavy investment in infrastructure development during a recession has the added advantage that after the recession is over, the country will stand to benefit from a good infrastructure that can be used to attract foreign direct investment (FDI),” said Dr Mashamba.
Labels: CONSTITUTION, CONTRACTORS, NCC, SYLVESTER MASHAMBA
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World Bank blacklists 4 Chinese contractors
Written by Chibaula Silwamba
THE World Bank has debarred China Geo-Engineering Corporation together with three other Chinese contractors from tendering for the bank's financed projects over alleged corruption. China Geo-Engineering Corporation is one of the many Chinese companies constructing roads in Zambia.
But China Geo-Engineering Corporation (CGC) branch manager in Zambia Li Jinping declined to comment, saying he was not aware of the World Bank's debarment of his company.
In a media statement issued last Wednesday, the World Bank named China Geo-Engineering Corporation as one of the seven firms from China and Philippines that were debarred for engaging in collusive practices under a major World Bank financed roads project in the Philippines.
"The firms and lengths of debarments [are as] follows: China Geo-Engineering Corporation was debarred for five years. The debarment can be reduced or terminated after three years if the firm puts in place a compliance programme satisfactory to the World Bank," the bank stated. "E. C. de Luna Construction Corporation and Eduardo C. de Luna, owner and sole proprietor of the firm, were both debarred indefinitely - the first permanent debarments since 2004. China Road and Bridge Corporation was debarred for eight years. The debarment can be reduced or terminated after five years if the firm puts in place a compliance programme satisfactory to the World Bank. China State Construction Corporation and China Wu Yi Co. Ltd were each debarred for six years. In the case of each firm, the debarment can be reduced or terminated after four years if that firm puts in place a compliance programme satisfactory to the World Bank."
The World Bank made the decision after investigations.
It stated that the debarments, which prevent the companies from bidding on future World Bank-financed contracts, either indefinitely or for the period of the sanctions, result from an in-depth inquiry conducted by the World Bank's Integrity Vice Presidency (INT).
INT is responsible for investigating allegations of fraud and corruption in the World Bank financed operations.
"INT closely analysed the procurement process the firms participated in and conducted numerous interviews before closing the investigations and initiating sanctions proceedings against the entities," it stated.
World Bank Integrity Vice President Leonard McCarthy stated that the INT was in the process of conducting a worldwide review of the Bank's activity in the roads sector.
"This is one of our most important and far-reaching cases, and it highlights the effectiveness of the World Bank's investigative and sanctions process," stated McCarthy. "As the World Bank Group continues to ramp up its anti-corruption work, INT will remain vigilant in investigating allegations and holding wrongdoers accountable."
When contacted on phone in Lusaka on Monday, Li said he did not know anything about the debarment.
"I have no idea about this. I can't comment," said Li in Lusaka.
Labels: CHINESE, CONTRACTORS, World Bank
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Contractor ditches govt for late payments
Written by Christopher Miti in Chipata
Friday, January 23, 2009 7:13:26 AM
ZHIAS Construction Limited says it has stopped tendering for government contracts due to the latter’s
failure to pay on time. ZHIAS Limited proprietor Zed Daya complained over government’s delay to settle a K96 million debt after the company worked on the Chipata Airport runway in 2001.
He said his company had done a number of government contracts although they knew that the government never paid on time.
"Now you know you can't be taking the government to court all the time because they blacklist you, then you see, we can't even take them to court. It’s unfortunate that this is a situation and some of us who are in the construction industry, we have decided to find our time, especially on our own jobs. Not to mention the names but, recently, I had to take one of the governments' institutions to court because a huge amount of money was owed to me and I managed to get my money after going to court, honestly I was given the money after six years of battle," Daya said.
He said it was sad that the government delayed even to pay small emerging contractors.
"It’s so sad that as far as policies of the government are concerned, they seem to be on paper only; they talk about capacity building of local contractors but if local contractors do the job and they are not paid on time, is that building their capacity?” Daya asked.
He said it was sad that some foreign contractors were being entertained at the expense of the local businesses.
"Some foreign contractors have an added advantage because their government supports them fully where as our the government, instead of supporting the local contractors in building capacity…. Look, I’m not saying that all the contractors are honest, there are so many contractors that have let down the government but they must be able to put in place a selection criteria, they must be able to evaluate and assess the jobs that they have done, the quality of the jobs and then give out the jobs based on the performance," said Daya.
Labels: CONTRACTORS, ZHIAS CONSTRUCTION LTD
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Mooya advises against single sourcing over Kasumbalesa
Written by Joan Chirwa
Thursday, January 08, 2009 2:00:50 AM
GOVERNMENT should allow other bidders to compete for the development of border facilities at Kasumbalesa instead of single sourcing the contractor, Moomba UPND member of parliament Vitalis Mooya has advised.
But transport and communications minster Dora Siliya has defended the decision to single source the contractor for the Kasumbalesa project under a Public Private Partnership (PPP) arrangement, saying it was an accepted procurement method under the Public Procurement Act of 2008.
Mooya yesterday said it would be prudent for the relevant authorities to cancel the agreement made over the development of the Kasumbalesa border facilities in the interest of transparency, as already indicated by the Secretary to the Treasury Dr Likolo Ndalamei. He was commenting on Dr Ndalamei's concerns in his letter to works and supply permanent secretary Lt Col Bizwayo Nkunika, questioning the single sourcing of a contractor for the Kasumbalesa PPP project and advised that the selection process be broadened in line with the PPP policy and for transparency.
“I totally agree with concerns raised by Dr Ndalamei. I fully support him on the idea of not having to single source a contractor for the development of border facilities at Kasumbalesa,” Mooya said. “Yes, the PPP policy was launched and Dr Ndalamei is right when he raises issues of the legal framework. This document first has to come to Parliament in order for it to have a legal backing. But as at now, that has not been done. We followed the same procedure with the transport policy, that's what we have been waiting for in terms of this PPP policy.”
The government last month signed a memorandum of understanding with Baran Trade Limited for the development of border facilities at Kasumbalesa at a cost of US $40 million under the PPP following the launch of the PPP policy on November 27, 2008.
Mooya wondered why the government was in a hurry to implement the PPP policy.
“I don't know why these people are in a hurry to single source the contractor. First of all, how did that contractor get involved? I really fail to understand that,” Mooya said. “It is important to call in other bidders and also to push the PPP policy to Parliament so that it can have a legal backing.”
According to a letter dated December 12, 2008 to Lt Col Nkunika and copied to finance minister Dr Situmbeko Musokotwane and works minister Mike Mulongoti, Dr Ndalamei opposed the idea of single sourcing the contractor for the Kasumbalesa project for the sake of transparency.
“In line with the PPP policy and for transparency, it is important that the selection of the contractor for the Kasumbalesa Border Post is broadened other than single source. The already submitted unsolicited bid should be technically and financially appraised regarding the “Build, Operate and Transfer” PPP arrangement other than grant it under the “single sourcing” aspect,” Dr Ndalamei stated. “It is also important that the issue of guarantees or letters of comfort in upcoming undertakings are clearly agreed considering that government, as stated in earlier correspondence, has a position of not issuing guarantees given the background of the high debt burden and litigations arising from government guaranteeing projects in the past. You may agree with me that guarantees can be purchased on the open market.”
However, in a statement yesterday, Dora Siliya stated that speeding up of the procurement process was necessitated by the continued loss of revenue by the Zambia Revenue Authority (ZRA) at Kasumbalesa border post due to the poor functionality of the present infrastructure.
“The Public Private Partnership policy under the guiding principles, chapter 4 item 4.1.9 provides for unsolicited bids where it states that 'potential PPP projects will not always be known and tendered to the public for submission of bids. It is possible that a PPP project could be initiated by the private sector where no bids have been requested. Such proposal from a developer or investor will be treated as an unsolicited bid'. Government does not stand to lose anything, the only risk government takes is the provision of land,” stated Siliya. “The concessionaire is the one who takes the bigger risk as he is the one investing his money. The concessionaire is not able to take with him anything he builds on the land and thus the government benefits.”
But Mooya said similar projects such as the Kamwala and City Centre markets were good examples where government would not benefit much.
“Those developers were given 65 year leases, and by the time that elapses, those building would have lost their value. I don't know what kind of benefits those are to the government and the people of Zambia,” said Mooya.
Labels: BORDERS, CONTRACTORS, PPPs, VITALIS MOOYA
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Shoddy by private sector worries Govt
January 4, 2009
GOVERNMENT is worried about poor workmanship by private sector institutions contracted to implement State-funded capital projects.
Ministry of Finance and National Planning deputy minister, Chileshe Kapwepwe, said in Lusaka that the poor quality of some works executed by the private sector on capital projects funded by Government was disturbing.
“It is disheartening to see that a number of road works and construction of clinics and schools in many parts of the country remain unfinished because of poor workmanship by the private sector,” she said.
She said this on Friday night at a Zambia Institute of Purchasing and Supply (ZIPS) fundraising function.
She said the erratic execution of the budget hampered development and that most failures in Government and the private sector could be because of questionable procurement practices.
Ms Kapwepwe said against the backdrop of current global financial meltdown, prudent management and cost-effective expenditures of Government resources was cardinal.
She said Government’s goal in the medium-term was to accelerate diversification of the economy with emphasis on agriculture, tourism and manufacturing - all of which are expected to significantly contribute to poverty-reduction and sustainable economic growth.
Ms Kapwepwe said the Government was working towards rationalising the tender process through the reform of the Public Procurement Act, streamlining and enhancing the structure of Zambia National Tender Board (ZNTB).
She said the ZNTB would evolve into a supervisory entity.
“Unless this is done, our organisations will find it difficult to deliver growth and expansion goals needed for Zambia to attain the Vision 2030,” she said.
She said Government was committed to good governance in procurement and supplies.
Ms Kapwepwe said Government would continue to put the private sector at the centre of the development process so that there is expansion in production of goods and services for sustained development and growth that would benefit all sections of society.
She appealed to ZIPS members to take the challenge and make a difference by providing better management of the procurement process in both public and private sectors.
“Please bear this in mind as you implement procurement and supplies decisions in your organisations,” she said.
Speaking earlier, ZIPS acting president, Jones Kalyongwe, said ignorance was generally the cause for failure to adhere to procurement procedures.
“Some people don’t know what to do. This is the more reason industries should employ qualified staff to carry out the procurement responsibilities,” he said.
Mr Kalyongwe said he hoped that the Ministry of Finance and National Planning would involve ZIPS in the implementation of projects this year.
[Zambia Daily Mail]
Labels: CHILESHE KAPWEPWE, CONTRACTORS, ZIPS
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Government surrenders banned contractors to DPP
By JERRY MUNTHALI
MINISTER of Works and Supply, Mike Mulongoti, says Government has handed over 21 blacklisted contractors to the Director of Public Prosecutions (DPP) to determine the merits of their cases.
Mr Mulongoti said this in Lusaka yesterday during a consultative meeting with the contractors. He said out of the 42 contractors that were banned, 21 had been cleared.
Mr Mulongoti said the contractors were notified that preliminary inquiries indicated that there was nothing worth taking to the DPP.
“There is another 21; the papers are with the DPP to determine whether there is merit in this,” he said.
Mr Mulongoti said instructions had been given to the directorate in the Ministry of Works and Supply to pursue the matter with the DPP.
Mr Mulongoti said the decision by Government to institute investigations for alleged unethical behaviour was not done in bad faith but was aimed at protecting and clearing the names of Government and the contractors.
He said this was vital to build confidence in the public who were the owners of the funds.
“When you are investigated, it does not imply guilt.
You must be ready to be investigated because you are paid public funds. I want to appeal to you that there must be no bitterness,” Mr Mulongoti told contractors.
He also said the Road Development Agency had already drafted the work plan for next year and that it was important that the names of the contractors were urgently cleared.
Mr Mulongoti advised the contractors not to be selfish but engage in partnerships with foreign companies with equipment and capacity so that they could build their capacities and complete projects in time.
He said Government wanted to construct nine major roads before the year 2011 but that the major hurdles were the contractors who delayed work due to lack of capacity.
“We want nine major roads by 2011. If you don’t see us, and we invite someone from Germany, do not be surprised,” Mr Mulongoti said.
He advised the contractors not to go straight to President Banda when they have a problem.
Mr Mulongoti also advised the contractors not to report their fellow contractors to the Anti-Corruption Commission (ACC) but instead engage in fair competition.
“If you go straight to the head of State, that is a vote of no-confidence in me, and I will tell him that you are a useless and corrupt contractor. So please work with us, our offices are open…we are here to solve problems,” Mr Mulongoti said.
Labels: CONTRACTORS, DPP, MIKE MULONGOTI
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