Local Government $ 13 million CDF Ambulance Purchase Scandal Tabled at PAC
Public Accounts Committee ( PAC) Hearings
The Public Accounts Committee is currently sitting to consider the Report of the Auditor General accounts of the Republic of Zambia for the financial year, 31st December 2023.
The matter regarding the purchase of ambulances under Constituency Development Fund (CDF), came up for scrutiny after the Auditor General flagged the purchase for irregular procurement method used and for failure to deliver the ambulances one year after the procurement process was completed.
Below is the summary;
●THE Public Accounts Committee (PAC) heard how the Ministry of Local Government and Rural Development, the Ministry of Health, and ZAMMSA procured 156 ambulance worth K336,173,760 ($13 million) but only eleven (11) units had been delivered.
● Ministry of Health, ZMMSA , Local Government ignored open public tender process to purchase 156 ambulances under CDF Funding.
● Delay of over one year yet procurement yet procurement was under emergency method.
● ZMMSA opted to use selective (direct) bidding, a process provided for emergency procurement. Limited or direct bidding is provided for if the goods required have one or limted supplier or the goods or services required are under emergency circumstances.
● ZMMSA picked suppliers Ace Pharmaceuticals (purchase of ambulances?) and Aqueous Investments instead of official manufacturers or accredited franchise-holders or dealers of Toyota Landcruisers, Toyota Zambia especially if guaranteed after-sale-service was to provided.
● According to the contract, all 156 vehicles were expected to be delivered by June 2024, but now the delivery period has once again been extended to 31st December 2024.
● During the hearing, the Permanent Secretary Local Government sought a further extension for the delivery of the ambulances to February 2025 stating that delivery of the ambulance under 20 weeks, as provided in the contract, was impossible.
● As at today only eleven (11) units, according ZMMSA, have been delivered into Zambia one year after the procurement process was completed
● Permanent Secretaries from Ministry of Local Government, Ministry of Health and ZMMSA, who travelled to Dubai to check up on the assembly of these ambulances, failed to explain to the Public Accounts Committee chaired by Bwana Mkubwa MP, Warren Mwambazi, why they used emergency procurement method but gave a contract of one and half years and why the ambulances have not been delivered yet, by these middle-men
● Delivery period of 16 to 20 weeks for the ambulances has been breached, again, time has been extended from June 2024 to December 2024.
● Procurement process shunned manufacturers or officially accredited franchise-holders but picked third parties or middlemen to supply and deliver the ambulances on the pretext that CDF requires support to local suppliers
● Following the hearing at PAC, the Zambia Medicines and Medical Supplies Agency has issued a public statement acknowledging the unjustified delay in the supply and delivery of ambulances.
● ZMMSA has confirmed that out of the 156 ambulances ordered from suppliers, Ace Pharmaceuticals, and Aqueous Investments, only eleven (11) units have been delivered.
● According to the original delivery schedule, all 156 ambulances were to be delivered by the 31st of December 2024.