ONE of Harare’s leading auctioneers, Desired Liaison Auctioneers (DLA), has reportedly been cited in an unauthorised manipulation of tender conditions involving the Zimbabwe Parks and Wildlife Management Authority (Zimparks) after inflating its charges soon after winning bids.
REPORT BY MOSES MATENGA
Informed sources said the move by the auctioneer could be a tip of the iceberg as it was reportedly rampant in the sector.
According to documents at hand, the State Procurement Board (SPB) informed losing bidders that DLA submitted a winning bid stating that it would charge a flat commission of 0,001% to buyers.
But, investigations by NewsDay showed that instead of charging the 0,001% it had indicated in its tender bid, the auctioneer charged a 10% premium. DLA won a Zimparks tender to dispose its goods by virtue of being the lowest bidder.
It is understood that auctioneers submit low bids to the SPB to secure government tenders, but later inflated commissions on the actual selling day, scooping millions of dollars in profit.
Although there was no response from DLA for the past three weeks after sending written questions and repeated calls, NewsDay investigations showed that the firm was recouping 10% of every sale.
Early this month, NewsDay submitted an offer to purchase a fly wheel for $45, but DLA charged 10% commission of $4,50, levy $1 and Value Added Tax of 67c to make a total of $50,17 for the product.
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Zimparks spokesperson Caroline Washaya-Moyo said: “The State Procurement Board awarded the 2013 Parks tender to Desired Liaison Auctioneers on the basis that the auctioneers would charge 0,001% commission to the buyers which is also contained in the contract document.”
Washaya-Moyo added: “No further charges to the Authority are acceptable other than the declared commission. Section 2.25 of the tender document provides that the Auctioneer shall meet all expenses for carrying out the Auction.”
In March this year, buyers who wanted to participate at a Zimparks auction threatened to walk out accusing the same company of breaching tender conditions. The incident was witnessed by NewsDay.
A player in the auctioneering industry told NewsDay: “A minimum of 5% commission is required to cover all costs and expenses of conducting an auction sale, that is advertising, venue hire, cash security, bank charges, general administration, and auctioneering service, as well as travel costs to various regions around the country where auction sales are also to be conducted this year.”
