Law coming to penalise non-compliant contractors
GOVERNMENT is in the process of enacting the law that will impose penalties on foreign contractors who do not comply with the 20 percent subcontracting policy, Works and Supply Permanent Secretary Charles Mushota has warned.
Mr Mushota said the law would compel foreign contractors to secure 20 percent of works awarded to them for locals.
He said in an interview that the punitive measures were not provided for in the policy and that was why it was sometimes disregarded.
"The 20 percent sub-contracting policy has come to stay and people should comply. I want to let you know that a law is coming that will have punitive measures," Mr Mushota said.
Mr Mushota said the law would be streamlined including all provisions of the 20 per cent to ensure compliance by foreign contractors.
"As you may be aware we are enacting a law the NCC and Zambia Public Procurement Authority (ZPPA) bills which will bring in penalties because the existing policy does not spell out punitive measures," Mr Mushota said.
He said Government would also structure tender documents to ensure those that were not complying with the policy were not awarded contracts.
"Going forward we are going to structure bidding documents in such a way that those that with record of not complying will not be awarded contracts," Mr Mushota said.
And Mr Mushota has however said there is an increase in compliance by some foreign contractors.
Mr Mushota cited AVIC which had so far engaged a good number of contractors.
"The situation at AVIC has completely changed we are now seeing a number of local contractors working with AVIC , we have a few people that are complaining but we also have a good number that are doing a good job," Mr Mushota said.