President Hakainde Hichilema’s Repeated Interference With Large-scale Procurements
By Amb. Emmanuel Mwamba
When President Hakainde Hichilema said he was concerned about lack of positive discrimination for local producers of fertiliser, we should have paid attention at this sudden change of heart towards local businesses.
Because he has adversely discriminated against local enterpises, refused to clear outstanding arrears owed to suppliers, contractors and consultants under the guise that an audit was underway and jas demonstrated keenes to shut down local companies such as SAVENDA.
On the other hand, his Government has paid arreas or debts owed to foreign interests companies such as First Quantum and Maamba Colleries.
Recently the cash-strapped Mopani Copper Mines borrowed $15million from a local bank to fund and jack-up mining production and operations, but strangely, it chose to pay $9million of the $15million to Copperbelt Energy Corporation PLC for outsanding electricity debt.
So when President Hichilema expressed concerns that there was no positive discrimination in the government fertiliser tender in favour of local businesses. He proceeded to cancel the tender, we should have been alert at the sudden change of heart.
He meant United Capital Fertilisers!
Because last year, he cancelled a legitimate fertiliser tender in which six local companies won the tender.
Local agro companies and commodity importers and traders; Samar Agro Investments, Stutone Investments, Conchak Investments, Alpha Commodities, Agrizam Investments and Evergreen Fertilisers emerged as best evaulated bidders under the open national bidding.
The tender was immediately cancelled.
This $330million fertilisers tender was later awarded to companies of mostly foreign interest; ETG, FSG, United Capital Fertiliser, Alpha Commodities and Agrizam to supply, deliver, warehouse and distribute the fertiliser.
This outcome was borne of President Hichilema repeated interferences and cancellations with the fertiliser procurement.
The process lay corrupt, bungled, botched and has consequently threatened food security for 2023.
SINGLE-SOURCING UNITED CAPITAL FERTILISER
Defying clear provisions of the Public Procurement Act of 2020 which obliges Ministry of Agriculture to conduct the competitive Open National Bidding, it has been disclosed that the Ministry has been directed to single-source or under direct bidding and choose United Capital Fertiliser for the supply of basal fertiliser under the guise that Government was promoting local manufacturers.
Only Urea, or top dressing procurement will be subjected to competion.
First of all, all “manufacturers” of fertilsers in Zambia are merely blending the product.
If Government’s concern about promoting loacal manufacturers and if this was true, the
Nitrogen Chemicals of Zambia was going to be given utmost priority and another private manufacturer, Zambia Fetiliser Comoany would have been given similar opportunities as given to United Capital Fertiliser.
Not learning from the 2022 crisis, last week President Hichilema announced that he had cancelled the 2023 tender process on the purported allegations that local producers of fertilsers were not given priority or favoured ( positive discrimination).
Wonderful Group of Companies has emerged as a prominent Chinese company in Zambia which owns United Fertilisers Company.
It has also set up of Boffar Machinery and Equipment(supplies medical equipment), Marcopolo Tiles Company( manufacturer of porcelain tiles), Mupika Sericulture and Silk Company ( set up of mulbery plantstion with the qim of producing silk fabrics from silkworms) and United Capital Feriliser Comoany with the aim of manufacturing closed-circuit fertiliser and amonia plant.
We are aware that the Anti-Corruption Commission was pursuing two ministers and senior officials in the corruption allegations in the fertilser procurement of 2022.
The investigations immediately went cold for one simple reason; State House calls the corrupt shots.
Zambians must brace themselves for another farming season of blunders and corruption.