PARLIAMENT has ordered the Bulawayo City Council to immediately institute disciplinary action against its officials who made an advance payment of $205 106 to Axis Medical Corporation Limited for the supply of four ambulances before the supplier disappeared.
BY VENERANDA LANGA
A second report of the Public Accounts Parliamentary Portfolio Committee on the findings by the Auditor-General on the 2010 and 2011 accounts for the Bulawayo City Council, which was presented by committee chairperson Paurina Mpariwa, disclosed that a further $100 000 was lost after vehicle trackers which were procured were not delivered despite the money having been paid in advance.
“A tender was awarded to a local supplier for the supply of ambulances amounting to $205 106 during the year 2010, and the supplier was paid in advance,” the PAC report read.
“As at December 31, 2013 the ambulances in question had not been received, and in addition vehicle trackers amounting to $100 000 were paid for in advance and had not been delivered to Council at the time of audit in 2014.”
During meetings with Bulawayo City Council, the PAC committee was told the contract with the supplier, Axis Medical Corporation was for four ambulances and was done through a Municipality Procurement Board.
“Most suppliers at that time were requesting for advance payment since they did not have capital and half of the amount, which is the amount in question, was paid. The supplier disappeared and the council pursued the matter in the courts and got a judgment under case number HC231/2011 to recover the actual amount from the supplier.”
The committee said efforts to execute the judgment were fruitless after they found the offices in Harare deserted and engagement of trackers did not yield any results.
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“Regarding vehicle trackers, they awarded the contract and they paid in advance against a bank guarantee. However, the supplier disappeared and they pursued the case in the civil courts and they again had the judgment, but the supplier, Track at, also from Harare, had vanished. The City did not call on the bank guarantee until the period expired. The Procurement policy allows them to pay in advance for bank guaranteed purchases.”
The committee said they noted with concern the level of maladministration in the City of Bulawayo demonstrated by failure by the officials to follow up a bank guarantee until it expired.
Other wrongdoings by BCC were said to be failure to provide to auditors documents supporting expenditure for repairs and maintenance and general expenses amounting to $151 504 and $179 396 for 2010 and 2011 respectively.
“The audit observed that council funds estimated to $76 000 were embezzled by an assistant accountant. The accused employee was dismissed and signed an agreement to repay the embezzled amount effectively treating the embezzlement like a loan.”
MPs that debated on the report demanded arrest of all council officials that embezzle funds as well as timeous audits so that those found in mischief are brought to book immediately.
