‘SPB disregards Zim-Asset policy’

Ngoni Dapira
THE State Procurement Board recently granted a Zimbabwe Electricity Transmission and Distribution Company tender of 139 one-tonne pickup trucks to two local car dealer firms, a development viewed as going against the Buy Zimbabwe policy under Zim-Asset, which is aimed at protecting and promoting local vehicle assemblers, Post Business has learnt.

This has raised the ire of local vehicle assembler, Quest Motors, which lost out after bidding for the tender. According to a notification letter to Quest Motors from the SPB, tender number ZETDC HO/05/2014 — which amounts to a total of US$3 495 147,10 — was awarded to Croco Motors and Paza Buster Pvt (Ltd).

“After deliberating and considering the recommendations relating to the above tender, the State Procurement Board has, in terms of section 21 of the Procurement Regulations 2001, awarded the tender through PBR 1346 of November 13, 2014, to the lowest bidder to specification per Lot as follows . . . Accordingly, in terms of Section 22 (3) of the Procurement Regulations as read with the Procurement Act, please be advised that your tender relating to the above has been unsuccessful,” read the letter signed by the SPB principal officer, Mr C. Nyanhete.

The SPB implements Government policy on the procurement of general use or operational vehicles for the public sector.

This as a result means that the 139 pickup trucks will be imported, instead of being assembled locally by either Quest Motors or any other local assembler like Willowvale Mazda Motors Industries.

This is regardless of the fact that the economy is currently on its knees due to a high import bill and a dying manufacturing industry.

In an interview with Post Business on Tuesday, the managing director of Quest Motors, Mr Tarik Adam, said the move was against the Government Gazette of 2002, reinforced in 2011, which now gives first priority of such tenders to local car assemblers.

He further described the act as callous and said it was the same as exporting jobs at the expense of thousands employed by local assemblers, which are struggling and on the verge of closing down.

“The 2002 Presidential Order which was more like a 100 percent local procurement quota decree stated that, ‘All vehicles purchased by Government and by other public institutions (including parastatals) shall be procured from local vehicle assembly plants,’” said Mr Adam.

To further reinforce this, in July the SPB chairman, Mr Charles Kuwadza, announced that the SPB under the regulation of the Zimbabwe Agenda for Socio-Economic Transformation, Cabinet Circular number 16 of 2011, impelled all government entities to buy locally.

“We are using Cabinet Circular number 16 of 2011 which states that unless otherwise cleared by Cabinet, operational vehicles should come from local assemblers.

“This saw a lot of enterprises seeking authority from Cabinet to buy from local companies like Zimoco, which was easily granted, but now we have ZimAsset in place and call for the promotion of local industry, it is now a different tune all together.

“We are referring them to local assemblers and if not satisfied we refer them to the Office of the President and Cabinet,” said Mr Kuwaza in an interview with our sister paper The Herald on July 31.

Mr Adam said the shift by the SPB from their Buy Zimbabwe stance in July, which is an ongoing nationwide drive under Zim Asset, raised eyebrows.

He further revealed that of the four types of pickup trucks on the tender, Quest Motors was able to manufacture all of them at reasonable prices within the same range as the awarded lowest bidders.

The lowest bidder prices were: 35 Isuzu KB240 4×4 ($29 299 unit price) and 34 Isuzu KB240 4×2 ($26 499) awarded to Paza Buster; 35 NP300 Nissan Hardbody 4×4 ($23 931.68) and 35 NP300 Hardbody 4X4 ($20 888.78) awarded to Croco Motors.

In July during the Confederation of Industries congress held in Mutare, following a tour of distressed companies including Quest Motors in the city, the Minister of Industry and Commerce, Cde Mike Bimha, said Government was working on a motor vehicle policy.

Minister Bimha revealed that the motor vehicle policy would address all the current constraints in the industry like the poor local market and competition from second-hand vehicles being imported.

Players in the car assembly sector have since lobbied for protectionist measures to assist them to stay in business, considering the large number of people under their employment who will be affected.

Quest Motors has potential to employ 1 500 workers in a one-eight hour shift producing 35 vehicles per day and over 700 workers per month, but at the moment is on short working time and employing just over 100 people.

Mr Adams said the three motor vehicle assembling plants in the country have the capacity to employ 40 000 workers including downstream players in the motor vehicle industry.

Mr Adam said such shifting of goalposts with Government policies was the biggest let down of ZimAsset at the moment and pleaded with Government to look into such irregularities.

An attempt to get a comment from Mr Nyanhete at the SPB offices was fruitless by time of going to press on Wednesday as his land-line kept on ringing without being answered.