The 156 CDF Ambulance Scandal

Amb. Emmanuel Mwamba writes;

The 156 CDF Ambulance Scandal

When the Public Accounts Committee (PAC) flagged the  purchase and supply of 156 ambulances under the CDF vault  at a cost of $13million as highly irregular procurement, Local Government Permanent Secretary for Technical Service,Nicholas Phiri defended the illegal procurement claiming that the aim was to empower local suppliers.

The Ministry deliberately refused to buy from Toyota Zambia or Nissan CFAO, or any franchise holder affiliated to manufacturers.

It wasn’t long before the contracted suppliers failed to deliver in the 20 weeks period given and have since missed the deadlines of June 30th,2024 and December 31st, 2024.

Another extension has been given of 31st May 2025.

However Phiri was quickly embarrassed when details emerged that a foreign national, Sujit Shanani was identified as the beneficial owner of ACE Pharmaceuticals, one of the suppliers of the ambulances.

It became clear that the Zambia
Public Procurement
Authority (ZPPA) Circular No. 1 of 2023, which reserves CDF-funded
procurements for
Zambian citizens, was breached with impunity.

Shanani has since been linked to the former Minister of Health, Silvia Masebo,and his company was awarded seven (7) more contracts by the Zambia Medical and Suppliers Agency (ZMMSA).

Shanani, an Indian national resident in Zambia, registered a local firm called Ace Pharmaceuticals using his workers.

Records show, Shanani has obtained over seven (7) contracts with the government at ZMMSA under limited bidding (single sourcing).

A check at PACRA revealed that Surij registered as shareholders, his workers Panetta Masala and  Sandiwile Piwase Stephanie Banda and Director, Manjit Singh Basan but he is the signatory and his brother at an account held at the Indo Zambia Bank Limited.

The registered business premises for Ace Pharmaceuticals is a pharmacy located in the sprawling Garden Compound in Lusaka.

Local Government and Rural Development Minister Gary Nkombo joined in the defence and told Parliament that the delay in supplying all 156 ambulances procured under CDF was not a scandal.

Nkombo said at least 50 ambulances will be in the country by December 31, 2024, with the remaining 106 to be delivered by May 31, 2025.

Only 11 ambulances have been delivered so far.

Minister of Health, Dr. Elijah Muchima says he is tired of the numerous stories about the ambulances.