The Public Procurement Regulatory Authority (PPRA) yesterday banned 34 companies from participating in public procurement for what it termed as failure to deliver and violating their contractual obligations.
With the latest one-year ban, the respective companies would not be allowed to supply goods and services to public offices countrywide, Vice-Chairman of the PPRA board of directors, Retired Judge Thomas Mihayo said yesterday.
“It was not easy to institute such punishment, but we had no other option. Procurement laws and regulations must be respected…” Judge Mihayo told reporters shortly after PPRA's board meeting held in Dar es Salaam .
The ban comes in the face of growing public concerns over massive violation of procurement laws and regulations in public circles, creating loopholes for corruption and embezzlement of public funds.
A series of reports released by the Controller and Auditor General (CAG) unearthed syndicates of government executives who are colluding with private companies to siphon public funds through procurements made by public offices.
PPRA vice-chairman said a ban imposed on 34 companies “would provide a lesson to others.”
According to Judge Mihayo, the authority’s board of directors imposed the ban in accordance with Regulation No. 102 (2) published in the Government Gazette No. 97 of 2005.
“26 out of 34 companies are banned because they failed to deliver, as per the contracts they had signed with various public institutions…they will not participate in public procurement for a span of one year,” noted board vice-chairman, adding “eight companies are banned because they colluded with public executives in effecting payments for unfinished public jobs.”
Besides, PPRA board expressed dismay over reluctance and deliberate failure by district councils, municipalities and other public institutions to comply with procurement laws and regulations.
Reading resolutions of the regulatory board, retired Judge Mihayo said several councils and municipalities which performed poorly in public procurement during PPRA’s 2010/11 performance audit were reluctant to correct mistakes—a clear signal that “Tanzanians should expect massive frauds, embezzlement, misappropriation of public funds in the coming and subsequent financial years.”
After the audit, according to Judge Mihayo, PPRA sat down with the respective public institutions in the context of devising strategies to improve their performances.
“We agreed in principle that, they (institutions) would sponsor tailor-made PPRA courses on how to implement public procurement laws and regulations in their purchases…to our surprise, all of them accepted but none of them turned up for the training,” said the vice-chairman.
“As we are talking to you, all of them are quiet…implying that they would continue procuring goods and services using their own styles. And this behaviour puts billions of tax-payers money at risk. So, we should expect more thefts and misuse of public funds in public offices,” he further stated. Ramadhani Mlinga, the PPRA Chief Executive Officer, 34 companies currently facing the ban include Lemungo Construction Co. Ltd, Majajulu Investment Ltd, Ostrich Maintenance Works Ltd, Nzori General Enteprises Ltd, Commetech Contractors Ltd, Naiko Supplies Company Ltd, Shedol Construction Ltd, Maktech & Tel Company Ltd, Jimmy Money Enterprises, Zephania Ngeleja of Ukerewe, Mawson Construction Ltd, Mahende Garage and Construction Co. Ltd, Nyanda & Company, Kipusi Traders, Jawabu Construction Company Ltd, Mike Construction, Rana Decoration, Building and Civil Contractors.
Others are Grace Mbilinyi, Computech ICT Ltd, Girland Developers Ltd, Camsa Construction Company Ltd, Twabaha Construction Company Ltd, Mailaka Building Contractors and Civil Works, Mussa S. Mbweso, Ligero Contractors Company Ltd, Julius Mwamlima Contractors, Muson Engineers Ltd, Man-Ncheye Pa Company Ltd, F.I.C Ltd, Nyegezi JJ Construction Ltd, Jossam and Company Ltd, Satelite Contractors Company Ltd, Icon Engineers, Tengo Construction Ltd.
Mlinga mentioned district councils, municipalities and public institutions which are reluctant to implement Procurement Act regulations as: Tanzania Coffee Board, Baraza la Kiswahili la Taifa, Urambo District Council, Mtwara Urban and Sewerage Authority, High Court of Tanzania, Air Tanzania Corporation, Mkinga District Council, Singida Municipal Council, Igunga District Council, Sengerema District Council, Prisons Department, Ministry of Home Affairs, Masasi District Council, UWASA Morogoro,
Others are: Tanzania Ports Authority, Institute of Judicial Administration, Contractors Registration Board, Kilolo District Council, Kilombero District Council, Nachingwea District Council, Tanzania Cotton Board, Lindi Urban Water and Sewarage Authority, Kinondoni Municipal Council, Tunduru District Council, Temeke Municipal Council, Same District Council and Tanesco.