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State Procurement Board in fresh tender storm

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THE State Procurement Board is at the centre of a fresh storm after it allegedly unprocedurally awarded a tender for the purchase of 139 pick-up trucks for ZETDC to two car importers.

THE State Procurement Board (SPB) is at the centre of a fresh storm after it allegedly unprocedurally awarded a tender for the purchase of 139 pick-up trucks for the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to two car importers instead of giving the tender to local car manufacturers in line with government directives.

CLAYTON MASEKESA OWN CORRESPONDENT

The $3 million tender was awarded to Croco Motors and Paza Buster (Pvt) Ltd. Buy Zimbabwe Campaign chief executive officer Munyaradzi Hwengwere raised the alarm last week and called on the government to investigate the matter and reverse the deal.

Hwengwere accused the SPB of deliberately ignoring government’s directive under the Zimbabwe Agenda for Sustainable and Socio-Economic Transformation which seeks to promote local industries and products.

“This also ignores the concerns of massive company closures locally. As Buy Zimbabwe, we do not have any issue against Croco Motors or Paza Buster, but we simply want to promote local production and buying of local products to help our ailing manufacturing sector.

“As a nation we must be mindful of the cumulative national deficit of $9,6 billion which is now higher than the national debt. Why should the little hard-earned money from parastatals be taken out of the country when we can produce the products locally to match if not surpass the standards of the imported products that will be on tender?” Hwengwere queried. Mutare-based Quest Motors and Harare-based Willowvale Mazda Motors Industries lost the bid.

According to a notification letter to Quest Motors signed by the SPB principal officer, Cledwyn Nyanhete, Croco Motors and Paza Buster Pvt (Ltd) won the bid after offering low prices for the vehicles. However, Quest Motors director Tarik Adam revealed that their prices were in the same range as the winners.

“This is callous. It is the same as exporting jobs at the expense of thousands employed by local assemblers, which are struggling and on the verge of closing down,” Adam said.

“The 2002 Presidential Order which was more like a 100% local procurement quota decree stated that, ‘All vehicles purchased by government and by other public institutions (including parastatals) shall be procured from local vehicle assembly plants’.”

Part of SPB’s notification letter to Quest Motors registered as tender number ZETDC HO/05/2014 reads: “After deliberating and considering the recommendations relating to the above tender, the State Procurement Board has, in terms of section 21 of the Procurement Regulations 2001, awarded the tender through PBR 1346 of November 13 2014, to the lowest bidder to specification per Lot as follows . . . Accordingly, in terms of Section 22 (3) of the Procurement Regulations as read with the Procurement Act, please be advised that your tender relating to the above has been unsuccessful.”

This comes shortly after SPB chairman Charles Kuwadza pledged a few months ago to abide by provisions of Cabinet circular number 16 of 2011 which compelled all government entities to buy locally. Adam said of the four types of pick-up trucks on the tender, Quest Motors was able to manufacture all of them at reasonable prices within the same price range.

The lowest bidder prices were: 35 Isuzu KB240 4×4 ($29 299 unit price) and 34 Isuzu KB240 4×2 ($26 499) awarded to Paza Buster, 35 NP300 Nissan Hardbody 4×4 ($23 931,68) and 35 NP300 Hardbody 4X4 ($20 888,78) awarded to Croco Motors.

Players in the car assembly sector have been lobbying for protectionist measures to assist them to stay in business following an influx of cheap pre-used vehicles mainly from Japan and had struck a deal with government where the latter would source its vehicles locally.