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ZPPA Permanently Bars Rainehard Ltd and Directors From Taking Part In Public Procurement

The Zambia Public Procurement Authority (ZPPA) has with immediate effect permanently barred Rainhard Logistics Limited and its directors from participating in public procurement in Zambia for failure to execute a contract relating to the construction of a 1×3 classroom block at Chisamu Primary School at Ng’ombe Illede in Chirundu.

This is despite getting an advance payment from the government.

Chirundu Town Council reported Rainehard Logistics Limited to ZPPA recommending that they be permanently barred from public procurement for non-performance of contractual obligations.

“ZPPA launched an investigation into the matter pursuant to the provisions of Section 6 (2) (f) of the Public Procurement Act. In defence, Rainehard Logistics Limited claimed that the failure to execute the contract was due to a change of management and that the new management was not privy to the information pertaining to the Chirundu Town Council Contract. After reviewing the matter, the Authority found that Rainehard Logistics Limited did not provide documentary evidence to corroborate their defence that there was a change of management. Records at the Patents and Companies Registration Agency showed no change of management. Further, ZPPA observed that even if management changed, Rainehard Logistics Limited was still liable to fulfil the obligations of the contract,” ZPPA public relations officer Laura Hamusute stated.

“It is against this background that the Authority barred Rainehard Logistics Limited and its directors from participating in public procurement in Zambia pursuant to the provisions of Section 67 of the Public Procurement Act No. 12 of 2008. ZPPA encouraged procuring entities to report all erring suppliers and contractors in line with the provisions of the Public Procurement Act and the Public Procurement Regulations. The Authority further warned all contractors and suppliers to ensure that they fulfilled their obligations or risk facing sanctions.”

According to Section 67 of the Public Procurement Act No. 12 of 2008, a bidder or supplier can be permanently barred from public procurement on the following grounds:
a) misconduct relating to the submission of bids, including corrupt, fraudulent, collusive or coercive practices, price fixing, a pattern of under-pricing of bids and breach of confidentiality;
b) substantial non-performance or under-performance of contractual obligations, provided that the non-performance or under performance is not due to any force majeure; (force majeure-an unforeseeable circumstance that prevents one from fulfilling a contract/act of God).
c) conviction of a criminal offence relating to obtaining or attempting to obtain a contract or subcontract; or
d) conviction of a crime related to business or professional activities.

And in a circular dated June 29th, 2020, issued to all permanent secretaries and controlling officers, chief executives of parastatal and statutory bodies, all town clerks and council secretaries of local authorities, ZPPA Director General Christopher Chichoni advised all procuring entities to enforce the debarment by not having any dealings with Rainehard Logistics Limited and its directors, except in respect of existing contracts signed prior to the debarment.

“In exercise of the powers vested in the Authority under Section 67 of the Public Procurement Act No. 12 of 2008, be advised that Rainehard Logistics Limited and its Directors, Lorraine Kufuna, Richard Musonda and Abedinego Chalikosa of Plot No 2112/14M, Off Great East Road, behind new University of Lusaka, Chongwe Campus, Lusaka have been permanently debarred from participating in public procurement in Zambia with effect from the date of this circular,” Mr. Chich…

8 Comments

  1. CONCERNED CITIZEN AMPLIFIED

    That’s the problem with local contractors , I think this should be from UPND.

  2. Musyani

    Dont just stop at that but institute legal proceedings against them,try recoup that money.

  3. Frank Chombela

    In fact it’s ZPPA at fault. They themselves awarded the contract to a company without capacity. If the procurement authority was clean, they would hv taken stronger action.

  4. mwenya milimo

    Frank, don’t comment on issues you don’t understand very well, ZPPA is a regulator, and is not involved in the procurement process. The procurement process is managed by respective Procuring Entities (PEs)

    • Cassius

      ZPPA is a regulator and they are not involved in the procurement process.

      • Atro Milambo

        What does a regulator do? To ensure things are in line with regulations. And failure to meet those regulations will lead to a fine/penpenalty or criminal charges attracting a minimum of 3 yrs in prison or directors being barred from such positions. Cases include bribery, fraud,abuse of authority/position aimed at enriching oneself…..

  5. mwenya milimo

    ZPPA is not involved in the award of contracts, but regulating the procurement processes. In this case, ZPPA is doing is regulating not awarding contracts.

  6. Killian

    The entire process smells corruption honestly how can an advance payment be made to a bidder that has been contracted to do the work and then people just don’t do what they have been paid for,and then you call oneself a success story when you are busy stealing public money it’s sad

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