Duped contractor cries foul

A LOCAL firm which was duped out of over US$1 million by an Indian company after being subcontracted to construct 208 health posts has complained over lack of protection from government.

Horizon Contractors Limited is still in limbo over an unpaid US$1, 044, 130.50 despite completing works as agreed with the ,ndian company -aguar 2Yerseas in 2016.

Jaguar has however been paid 87 percent of the US$19 million project for the construction of health posts in Central, Eastern and Copperbelt provinces by the Zambian government.

7he ,ndian firm had partnered with Horizon Contractors because it did not have a construction licence to operate in Zambia

Senior director at Horizon, Winson Siame lamented that the Ioreign firm Zas deliberately Iailing to honour its contractual obligations because there were no policies to protect local contractors.

Mr Siame said Horizon had tried on several occasions to seek the intervention of government without success.

“The Ministry of Health which awarded the contract to Jaguar is well aware about our problem. We received a small payment from Jaguar some time back when then minister of Health, Dr Joseph Kasonde had intervened. This time we tried raising the issue with the ministry but there has been no help at all,” he said.

Mr Siame also said his organisation had been following up the matter Zith -aguar 2Yerseas through email several times but that there had been no response.

+e said oYer firms Zhich Horizon sub-contracted were now threatening legal action, as they had not been paid as per agreement.

According to a complaint letter addressed to the minister of ([ternal $̆airs in ,ndia 6ushma Swaraj, the sub-contractors were supposed to be paid their dues for the executed works two weeks after certification oI completion by government inspectors.

,n the letter +ori]on complained that -aguar 2Yerseas Zas reluctant to release money despite being paid by the Zambian government through Exim Bank oI ,ndia.

The letter indicates that Jaguar only paid Horizon 59 percent of the works executed despite receiving about 87 percent of the contract value.