PRAZ sanctions ban of 19 procuring companies

THE Procurement Regulatory Authority of Zimbabwe (PRAZ) says it has made considerable headway in curbing unprofessional practices by some procuring companies as it has sanctioned 19 errant firms since last year for procurement delinquency activities.

PRAZ chief executive officer (CEO), Clever Ruswa said all were recommended for debarment, a signal that the value-for-money exercise, as required by the Government, is instilling sanity in the public procurement segment.

He was speaking during a training workshop for Bulawayo media practitioners on Friday aimed at raising awareness on the provisions of the reformed Public Procurement and Disposal of Public Assets Act (PPDPA) and to also clarify the objectives and provisions of the act.

“Since Praz inception, we have dealt with 25 companies on debarment, some have been suspended or have the suspension lifted.

“We have one company, Solutions Motors, which has been permanently debarred.

“Out of 19 companies recommended to Praz for debarment, three have been cleared as they managed to sort themselves with the Financial Intelligence Unit and the Zimbabwe Revenue Authority (Zimra) and 15 are still to clarify their positions,” said Mr Ruswa.

He said in relation to blacklisting, the law provides for the blacklisting of suppliers and individuals who are not conforming to the requirements of procurement.

“On debarment, there are processes or stages that take place starting with suspension depending on the gravity of the case for a period of up to 12 months.

“As part of the prescribed conditions, the company is then told what caused it to be barred, and if it fails to address the issues, that period can be renewed for up to 24 months. After 24 months there is permanent debarment,” he explained.

Mr Kuswa implored contractors to carry due diligence before hiring contractors as that would assist in exposing firm that do shoddy jobs.
However, he said there is reluctance on this front.

Zimbabwe Revenue Authority (Zimra

“On the credibility of supplies, we expect procurement authorities that before they engage firms that have been recommended for debarment for the Ministry of Finance and Economic Development ensure that they have all necessary documents such as Zimra clearances.

“If an entity is not satisfied with the quality of the job done, they should report that to us for debarment and avoid the same contractor from being hired by another company and continue delivering with shoddy jobs.

“But this is not the case and they mystify issues claiming that Praz does not like a certain company. We have seen the reluctance in reporting contractors that do substandard work.”

Last year, the Government’s value for money investigation on all payments to suppliers and contractors to ministries, departments and agencies exposed a massive overpricing scam by unscrupulous service providers some of whom pegged their prices based on speculative market exchange rates.

Procurement Regulatory Authority of Zimbabwe (PRAZ)

The obscene forward pricing of goods and services rendered to ministries, departments and agencies (MDAs), as well as parastatals and local authorities has been blamed for fuelling wild parallel market exchange rates and subsequent price escalation.

With the Government being the major buyer, the move prompted the suspension of payments to some supplier contracts, which are now subject to a value for money audit review before the payments are made, as a corrective measure.-chronicle.co.zw