Daily Nation Newspaper

Company probed over undelivere­d dredgers

- By ANNIE ZULU

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.

Newspapers in English

Newspapers from Zambia