AMB. MWAMBA REPORTS ZESCO POLE TENDER TO ACC AND ZPPA
Former Ambassador to Ethiopia and Opposition Patriotic Front Presidential Aspirant, Amb.Emmanuel Mwamba has reported to the Anti-Corruption Commission a tender issued by ZESCO for the supply and delivery of 40,000 wooden poles.
ZESCO has shortlisted 10 foreign companies from Zimbabwe and South Africa to supply and deliver the poles.
In a letter dated 6th April 2022, Mr. Mwamba said the use of direct bidding for a tender requiring collasal sums of money was being motivated by corruption.
He has also requested the Zambia Public Procurement Authority to order a cancellation of the tender as it was not transparent or objective and irregularly issued.
He said the action to exclude ZAFFICO, Copperbelt Forest Company and other Zambian companies was not justified.
He said the tender was being driven by motives of corruption as the method used to single-source the foreign suppliers, was dubious.
He said the use of direct-bidding or single-sourcing is used in emergency circumstances and the supply of wooden poles to ZESCO did not warrant such a method.
Mr. Mwamba also wondered why local suppliers were denied an opportunity when on the list of the foreign ten (10) suppliers that ZESCO has shortlisted, it has middlemen on it.
Mr. Mwamba delivered the letter to the ACC and signed an official statement of complaint.
Below is the letter to ACC and ZPPA.
EMMANUEL MWAMBA
136/A
Chandwe Musonda Road
Villa Elizabetha
Lusaka
Wednesday 6th April 2022
The Director General
Anti-Corruption Commission
LUSAKA
Dear Sir; TENDER FOR THE SUPPLY AND DELIVERY OF 40,000 ZESCO POLES MOTIVATED BY CORRUPTION
I refer to documents released by ZESCO dated 22nd March 2022 referenced MD/PROC/LP/0965/2022 and their public statement issued on 31st March 2022 titled; “ZESCO MOVES TO DISMANTLE NEW CONNECTIONS BACKLOG”.
I also refer to the statement issued by the Minister of Energy Hon. Eng. Peter Chibwe Kapala issued on 30th March 2022 titled; “AVOIDING MIDDLE-MEN IN PROCUREMENT IN THE ENERGY SECTOR.”
The above information reveals that ZESCO intends to award a tender for the purchase and supply of 40,000 wooden poles to dismantle the backlog of 67,000 outstanding new power supply connections.
To this effect, ZESCO has shortlisted and issued a tender to ten (10) foreign companies using the method of direct-bidding (also known as single-sourcing).
CONCERNS
1. The use of direct bidding for such a big tender which will use huge public resources raises deep concerns as the process is not transparent, objective and cannot be justified.
ZESCO as a state-owned enterprise and one of Africa’s largest utility companies, is expected to adhere to best practices and the use of transparent but effective ways and methods in its public spending.
2. On the wooden poles both ZAFFICO and Copperbelt Forest Company have similar capacity to produce and supply ZESCO with the wooden poles. Infact, information shows that ZAFFICO produces 5000 poles a month. If given time, ZAFFICO can produce the whole lot by December 2022 which is ZESCO’s target.
3. The exclusion of local suppliers on the pretext and justification that they are not a direct source of wooden poles is unfounded. A quick search on the 10 shortlisted companies shows that some companies on the list are middle-men, or shop owners and others only have wood treatment plants as they source the raw material of timber from Zambia, Zimbabwe, South Africa, and from Eswatini and Brazil.
4. Infact, Zambian entrepreneurs can arrange similar logistical arrangements to supply ZESCO with the Poles at the right quantity, time and price if given a fair chance and opportunity.
5. The attempt to show that this procurement is urgent and required direct bidding to the exclusion of Zambian companies, and on the pretext that it will be cheaper for ZESCO is defeated by the presence of middlemen on the list and the exclusion of both ZAFFICO and Copperbelt Forest Company.
It is therefore envisaged that both your institution and the Zambia Public Procurement Authority (ZPPA) will stop the process, investigate the underlying concerns before a public and acceptable tender can be issued which affords business houses in Zambia and elsewhere equal chances to the benefit of ZESCO and the country.
Yours Faithfully.
Emmanuel Mwamba
CC; The Director General
Zambia Public Procurement Authority.
Lusaka
