CORRUPT CONTRACTS EXPOSED

...non-tax compliant and unregistered companies awarded contracts

By AARON CHIYANZO SECURITY wings should be more proactive in stopping economic sabotage such as the case in which 518 companies, that are either nontax compliant or registered for tax, were awarded contracts dubiously, People’s Alliance for Change (PAC)

president, Andyford Banda has charged.

Financial Intelligence Centre (FIC) acting director general Liya Tembo disclosed that more than 500 companies have been illegally awarded contracts by quasi- government institutions.

Ms Tembo said 650 companies that had obtained contracts from quasi-government institutions were subjected for tax status verification and more than 70 percent were found wanting.

She told the Daily Nation that 294 of the companies analysed for tax status were found to be non-compliant, while 224 were not even registered.

Ms Tembo explained that both the Public Procurement Act and the Public Procurement Regulation required any bidder for a public contract to have fulfilled tax obligations.

“We subjected a total of 650 companies that had obtained contracts from quasi-government institutions for tax status. 294 of the companies were noncompliant, while 224 were not registered,” she said.

Ms Tembo said that nearly 50 percent of the 575 companies considered in the tax cases also had no financial base to execute the works.

She said that contrary to set regulations, even companies which had been operational for less than 12 months were being awarded contracts.

She pointed out that the exercise also revealed that some companies did not have any experience.

Ms Tembo explained that the Acts required all bidders for public contracts to have legal capacity to enter into a contract.

She said that the Acts also required bidders to be solvent, not in receivership, bankrupt or wound up, its affairs administered by the court or judicial officer.

Ms Tembo said that all bidders should have fulfilled obligations to pay taxes and social security contributions.

Meanwhile, Mr Banda said that investigative wings should be proactive when dealing with illegal activies.

He reiterated that all illegalities should be investigated without fear as the Head of State had already indicated that there would be no sacred cows in his government.

Mr Banda pointed out that President Edgar Lungu had on several times stated that investigative wings should live up to their mandate.

He said that there was no way investigative wings could show cowardice in probing government officials as they had the blessing from the highest office in the land to do so.