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…