Foreign firms not giving locals business
FOREIGN construction companies which are awarded contracts are defaulting to sub-contract 20 per cent of their contracts to local firms as required by law, Zambia Republican Party (ZRP) president Wright Musoma said in Lusaka yesterday.
Mr Musoma called on the Road Development Agency (RDA) to ensure that the foreign companies sub-contracted 20 percent of their contracts to local firms to build their capacity.
He told the Daily Nation in an interview that there were glaring cases of default to subcontract 20 per cent of their contracts to local companies among the foreign firms which were awarded contracts to build roads.
He said it was time for relevant authorities to be practical in safeguarding the interests of local investments by ensuring that foreign companies in the construction sector complied with rules and regulations governing it.
Mr. Musoma said most indigenous companies were failing to take off and thrive in the construction sector because most of the capital projects done by government were given to foreign companies which had financial resources.
He said it was disheartening that government institutions which were supposed to ensure that the foreign companies followed the law were doing nothing about the default to sub-contract 20 percent of their contracts to local firms and demanded for action against the erring companies.
“Our local contractors are simply at the mercy of foreign companies which have continued to strike deals with government over capital projects. These foreign companies have continued disregarding the 20 percent of contracts which must be given to local companies and this trend has continued unabated by relevant authorities. This is not only daylight robbery but a hindrance to the promotion and development of indigenous enterprises,’’ Mr Musoma said.
He said the RDA and other relevant government institutions ‘must wake up’ and realise that if the trend did not change, local firms would fold up.
Mr. Musoma said foreign investors should not be allowed to engage into small scale businesses such poultry and brick-making which should be a preserve of Zambians.
“Have you ever seen a single Zambian who goes to China to sell freezits? It is only in this country where some individuals will come as investors but are allowed to venture into poultry, brick-making and even selling roasted maize on the market and no one seems to care. As ZRP, we will take them on because it is too much.
Most of the brick-making tuntembas you find in Lusaka are owned by the Chinese and one wonders how such individuals were allowed to come into the country as investors,” he said.