DREDGERS SCANDAL
…State pushes for $9m refund for undelivered dredgers
Government had paid amounts totalling US$9, 240, 370 leaving a balance of US$2, 635, 430 but to date the supplier has failed to deliver the dredgers, prompting the State to cancel the deal.
GOVERNMENT
through the Ministry of Justice is in the process of recovering over US$ 9 million for undelivered dredgers from MCD Civil and Mechanical Engineering.
By November 2015, Government had paid the supplier amounts totalling US$9, 240, 370 leaving a balance of US$2, 635, 430 but has to date failed to deliver the dredgers, prompting the State to cancel the deal.
Ministry of Communication and Transport Permanent Secretary, Misheck Lungu, said the process of recouping the paid funds had begun and that the Ministry of Justice was handling the matter.
Mr Lungu said in an interview that Government was now procuring the dredging equipment directly from a Netherlands-based manufacturer.
Mr Lungu said Government has so far procured eight dredgers from Big Machinery and that three had been delivered while five have been manufactured but yet to be delivered.
He said the five would be delivered as soon as Government pays for shipment costs.
Mr Lungu said the Ministry of Justice was working towards ensuring that funds were recouped from MCD Civil and Mechanical Engineering.
According to the Auditor General’s report, the ministry entered into a contract with Herpworth Supplies and Innovative Materials System JV on October 17, 2014 to supply five dredging machines.
The supplier was given a delivery period of four to six months, effective June 1, 2015. Consequently, the ministry paid the supplier US$6, 426, 000 leaving a balance of US$1, 134, 000.
The AG’s report, however, points out that a review of records and a physical inspection carried out in the districts revealed that only two dredgers had been delivered while the remaining three had not been delivered as of July 2016.
The report also disclosed that the ministry also engaged MCD
Civil and Mechanical Engineering on January 13, 2015 to supply 12 dredging machines at a contract price of US$11, 875, 800.