Govt contract shocks firm

… local firm feels betrayed that foreign company that failed to pay has landed another job

Even three weeks ago we wrote to them and they said that it was none of their business,” — Mr Sikapondo.

Zambian contractors are shocked that an Indian company, Jaguar Overseas that owes local firms millions of dollars has been given more business by Government. Local contractors are shocked by government decision to award a contract to an Indian company that has previously failed to pay them for their previous work. They have now called for an independent investigation because the company involved had failed to honour its obligations to pay Horizon and the more than a 100 other firms which had been subcontracted previous for works . Jaguar Overseas allegedly duped local contractors of over US$1 million through nonpayment after being contracted to construct 208 health posts in Central, Eastern and Copperbelt provinces in 2014 using their own money. Ministry of Health permanent secretary, Kennedy Malama however announced on Friday that Jaguar had been contracted to build the remaining 201 health posts in Muchinga, Northern, Luapula and North Western provinces. And a local contractor, Horizon Contractors Limited which was allegedly duped by Jaguar Oversea has cried foul over the awarding of more business to the foreign firm when the ministry was aware of the complaint. Senior director at Horizon, Stephen Sikaponda wondered why Government had awarded Jaguar another contract when it was owing local contractors colossal sums of money. Mr Sikaponda told the Daily Nation that Horizon had been pleading with the Ministry of Health to intervene in their matter but that the ministry had been saying it was not their baby. “We are surprised that the ministry has gone ahead to award Jaguar more business when they are fully aware about our situation. Even three weeks ago we wrote to them and they said that it was none of their business,” he said. Mr Sikaponda said that it was unfair for Government to completely give the matter a blind eye and disregard the plight of local firms. Several firms, which were sub- contracted by the local contractor, Horizon Contractors Limited are now threatening to sue following the failure to honour contractual obligations, two years after works were certified complete. The Indian firm however partnered with Horizon Contractors Limited, a local firm because it did not have a construction licence. Horizon Contractors also subcontracted over 100 local firms, with an agreement for the firms to use their own money to carry out the works, then receive a contractual payment upon completion of the works. The over US$19 million project for the construction of the health posts and installation of essential equipment was signed between the Zambian government and an indian company on July 3, 2013. According to a complaint letter addressed to the minister of External Affairs in India, Sushma Swaraj, the sub- contractors were supposed to be paid their dues for the executed works, two weeks after certification of completion by government inspectors. Most local sub-contractors are however still being owed, with some not paid at all, despite the completed works being certified in 2016. When contacted, the permanent secretary, Dr Malama promised to call back but did not do so by press time.