Company probed over undelivered dredgers
LAW enforcement agencies are investigating MCD Civil and Mechanical Engineering Limited for failing to deliver nine dredging equipment after Government paid 72.5 percent of the total contract sum, Housing and Infrastructure Development Minister Ronald Chitotela has said
Mr Chitotela said Government had referred the matter relating to the performance bond and non-delivery of the dredging equipment by the company to law enforcement agencies and the Solicitor General to take action.
He said this was in line with the provisions of the contract signed between the two parties.
He noted that in 2015, Government through then, Ministry of Transport, Works, Supply and Communications decided to procure 12 dredgers in which MCD Civil and Mechanical Engineering Limited was contracted to supply and deliver the dredgers at a total cost of USD11, 875, 800 with the delivery period of eight months.
The minister explained that Government as at 2015 paid about 72.5% of the total contract sum and that the supplier had delivered only three dredgers, leaving a balance of nine dredgers
He said the contract delivery period was therefore extended to May 31, 2017 to allow the suppliers to deliver in full, but the dredges were not delivered prompting Government not to go on with the contract.
The minister said this when he presented a Ministerial Statement on procurement of dredging equipment by Government in Parliament yesterday.
“After several reminders to MCD to supply the balance of nine dredgers, a letter was fully issued to MCD on October 13, 2017 communicating the non-renewal of the contract,” Mr Chitotela said.
He also clarified that the advance payment made for the procurement of the dredgers were in line with the requirements of the Zambia Public Procurement Authority Act.
Mr Chitotela said the law recognised advance payments under procurement, but however relegated the terms and conditions under which the payments were made to be agreed by parties and stipulated under specific contracts.