adminNow Government has moved in to stop the rot by directing that SPB’s role of awarding tenders be given to line ministries to improve efficiency.
Finance Minister Tendai Biti last Friday told our Harare Correspondent that the SPB would now become a mere regulatory body. Allegations of underhand dealings at the SPB had resulted in incompetent companies being awarded tenders to do critical Government jobs which they later failed to do.
“The Procurement Act is set to be amended and this will see the SPB being reduced to a regulatory role. All procurements will be done by line ministries,” said Minister Biti.
Mr Charles Kuwaza, who chairs the SPB, admitted in June last year that some of his officers corruptly awarded tenders to bidders. Appearing before the parliamentary portfolio committee on Budget, Finance and Investment Promotion, Mr Kuwaza said the SPB did not have enough staff to investigate if parastatals and ministries were following the law in procurement.
“The possibility of corruption could be there at the evaluation stage where some people may see that a certain bidder has met all the specifications. They then phone that bidder asking for a payment to facilitate that they win the tender when the bidder was still going to win it because they have met all the requirements,” said Mr Kuwaza.
The Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion has led calls for the overhaul of the SPB to stamp out corruption and increase tenders awarded to local businesspeople.
The Committee, chaired by Goromonzi North MP Cde Paddy Zhanda, in August last year instituted an inquiry into allegations of corruption levelled against the board by contractors and procuring entities.
The Committee also investigated allegations that the board was failing to make follow ups on the performance of contractors. In a report presented to Parliament, the committee noted that the State tender system favoured contractors resident in Harare as tenders were advertised in Harare newspapers.
Read part of the report: “Stakeholders cited the challenge arising from the centralisation of the SPB offices in Harare. Contractors outside the main cities also have challenges in collecting tender documents and submitting bids”.
The Committee also established that the SPB was composed of people who lacked the technical knowhow on projects. Criticism was also levelled at the SPB for awarding tenders to foreign contractors who ignored local procurement and at times did not subcontract local firms.
The SPB was always going to have a challenge keeping its officers from succumbing to the temptations of kickbacks and underhand dealings as it handled up to 40 percent of the national budget as well as procurement needs of local authorities, State-owned corporations and parastatals as well as public utilities.
The decision by Cabinet is therefore welcome and is in line with recommendations of the Budget Committee which in its report cited glaring shortcomings of the procurement system and called for an urgent review of the State Procurement Act and its attendant regulations.
The SPB is embroiled in court battles with contractors who have failed to fulfill contracts or are contesting the way tenders have been awarded. In one of the cases, a Bulawayo company is accusing the board of flouting procedures in awarding a tender for the electrification of the Mtshabezi-Umzingwane water project.
The SPB last year also came under fire from Bulawayo businesspeople and prospective bidders who alleged a lack of transparency in the award of tenders particularly for jobs in the city and Matabeleland region. They also accused the board of deliberately delaying to respond to losing bidders so that they do not contest the outcome which they should challenge within 15 days.
We are hopeful that the new system will reduce cases of corruption in the award of tenders and improve efficiency. We also call on Government to ensure transparency by making public all major tenders and the manner in which they are awarded to companies.
Online Reporter