Pro­cure­ment Reg­u­la­tory Au­thor­ity hold­ing $5m bid­ders’ funds

Sunday News (Zimbabwe) - - Front Page -

THE Pro­cure­ment Reg­u­la­tory Au­thor­ity of Zim­babwe (PRAZ) is hold­ing $5 mil­lion bid bond in trust ob­tained as bid­ding fee auc­tions from firms that par­tic­i­pated in ten­ders by State en­ti­ties.

PRAZ chief ex­ec­u­tive of­fi­cer Mr Nyasha Chizu told Sun­day News Busi­ness that the $5 mil­lion was ac­cu­mu­lated over three years as procur­ing en­ti­ties take time to ap­ply for the re­lease of bid bonds to un­suc­cess­ful bid­ders.

“There have been nu­mer­ous com­plaints from bid­ders on the de­layed re­lease of the bid bonds for ten­ders that would have been con­cluded. It is, how­ever, im­pos­si­ble for PRAZ to re­lease the bonds at the re­quest by the bid­ders. The procur­ing en­tity is re­quired to con­firm that they have no obli­ga­tions with the bid­ders for PRAZ to re­lease the bond since there are sit­u­a­tions that ig­nite for­fei­ture of the bid bond,” he said.

A bid bond, which is se­cu­rity de­posited by a bid­der, guar­an­tees the main­te­nance of the terms and con­di­tions con­tained in the of­fer in-line with terms of Sec­tion 44 of the Pub­lic Pro­cure­ment and Dis­posal of Pub­lic As­sets Act (Cap 22:23). It (bid bond) is aimed at re­duc­ing ir­re­spon­si­ble bids and to en­cour­age bid­ders to ful­fil the con­di­tions of their bids when the bid has been ac­cepted.

“Most bid­ders pre­fer the re­fund­able cash de­posit to the au­thor­ity since it is easy to es­tab­lish. The procur­ing en­tity is there­fore re­quired in terms of Sec­tion 26 (7) of the reg­u­la­tions, to re­lease bid bonds promptly to un­suc­cess­ful bid­ders upon the con­clu­sion of a pro­cure­ment con­tracts,” said Mr Chizu.

He also said bid­ders have a con­sti­tu­tional right to be in­formed about the out­come of the ten­ders they would have par­tic­i­pated in.

“PRAZ may only know of the po­si­tion with re­gard to bid bonds from the com­mu­ni­ca­tion from the procur­ing en­ti­ties af­ter the due process. This is why the Au­thor­ity is call­ing on all bid­ders to seek re­sults of all ten­ders in­clud­ing re­quest for quo­ta­tions as it is their con­sti­tu­tional right to be in­formed of the out­come of all ten­ders that they par­tic­i­pate in, such re­sults ig­nite fur­ther com­mu­ni­ca­tion with re­spect to the po­si­tion of bid bonds,” said Mr Chizu.

The Au­thor­ity is work­ing on es­tab­lish­ing a ser­vice­based cen­tre aimed at as­sist­ing bid­ders to ex­er­cise rights as well as im­prov­ing per­for­mances of pub­lic au­thor­i­ties.

“We are plan­ning on es­tab­lish­ing a call cen­tre to fa­cil­i­tate or ac­com­mo­date sup­pli­ers that shy aware from ret­ri­bu­tion. We are aware that bid­ders are afraid to ex­er­cise their rights and we en­cour­age them not to shy away since it does not only dis­ad­van­tage them as sup­pli­ers but in­stead, pro­motes in­ef­fi­ciency in the pub­lic sec­tor. We are also plan­ning spe­cific sec­tor con­fer­ences where par­ties from both the pub­lic and pri­vate sec­tor shall par­tic­i­pate in an ef­fort to im­prove the per­for­mance of the pub­lic pro­cure­ment, a key pol­icy level for ef­fec­tive pub­lic ser­vice de­liv­ery,” Mr Chizu.

He fur­ther stated that the Au­thor­ity was also in the process of en­hanc­ing its reg­u­la­tions to com­ple­ment the Gov­ern­ment’s vi­sion on na­tional devel­op­ment.

“The Au­thor­ity is work­ing on strength­en­ing com­pli­ance, mon­i­tor­ing and eval­u­a­tion of pub­lic pro­cure­ment pro­cesses. We are in the process of de­vel­op­ing com­pli­ance, mon­i­tor­ing and eval­u­a­tion reg­u­la­tions to en­hance the teeth for the reg­u­la­tor. Con­tract man­age­ment is one area that we shall con­cen­trate on. Our mon­i­tor­ing and eval­u­a­tion di­vi­sion shall re­view the per­for­mance of all pub­lic con­tracts to ensure that projects are de­liv­ered within the stip­u­lated time frames in or­der to achieve the vi­sion of Pres­i­dent Mnan­gagwa of an up­per mid­dle in­come econ­omy by 2030,” said Mr Chizu.

Mr Nyasha Chizu

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