For immediate release

Thursday, 11th August, 2022. The Zambia Public Procurement Authority (ZPPA) has permanently barred Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited from participating in public procurement for collusion and connivance in the submission of quotations in a tender undertaken by the Ministry of Health.

ZPPA received a recommendation to investigate Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited for possible connivance and collusion in the tender issued by the Ministry of Health, for the procurement of face masks and re-usable surgical scrubs to support the response towards the COVID- 19 outbreak. The recommendation was made pursuant to section 97 of the Public Procurement Act No.8 of 2020.

 

The facts of the matter were that the Ministry of Health evaluated three bids, from Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited for the supply and delivery of face masks and re-usable surgical scrubs. The Ministry of Health awarded the contract to Greenside Suppliers and Investments Limited through a Procurement Committee meeting held on 4th September, 2020.

 

The investigations conducted by ZPPA revealed that there was misconduct by the directors from Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited in the submission of quotations for the tender.

 

ZPPA established that FMC Farms Limited and Simuliya Trading Limited did not take part in the tender that was issued by Ministry of Health for the procurement of face masks and re-usable surgical scrubs. However, blank quotations, tax clearance certificates and certificates of incorporation for FMC Farms Limited and Simuliya Trading Limited were given to the proprietor of Greenside Suppliers and Investments Limited by a director and shareholder in FMC Farms Limited and Simuliya Trading Limited and the same documents were used in the tender for the procurement of facemasks and surgical scrubs as cover bids.

 

ZPPA therefore determined that there was collusion and connivance in the submission of quotations in the tender based on the fact that a director and shareholder in both FMC Farms Limited and Simuliya Trading Limited provided blank quotations as cover bids to the proprietor of Greenside Suppliers and Investments Limited which were used in the tender that Greenside Suppliers and Investments Limited eventually won.

 

In view of the foregoing, ZPPA has permanently barred Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited from participating in public procurement. The decision to permanently bar the three suppliers from participating in public procurement is in accordance with section 97 (1) (c) of the Public Procurement Act No.8 of 2020 (section 67(1)(a) of the repealed Public Procurement Act No.12 of 2008).

 

The connivance and collusion were initially revealed in the findings of the Auditor General on the audit of utilisation of COVID -19 resources for the period July, 2020 to October, 2021, which revealed, among other things, suspected irregular bid responsiveness, and cover bidding – unfair and uncompetitive procurement practices, in the bid for the supply and delivery of face masks.

 

ZPPA has therefore, advised all procuring entities through a circular, to enforce the debarment by ensuring that they do not award contracts, sell or issue solicitation documents or in any other way invite bids from Greenside Suppliers and Investments Limited, FMC Farms Limited and Simuliya Trading Limited. The Authority has further advised all procuring entities not to enter into any other dealings with or communicate with the suppliers except in respect of existing contracts placed prior to this debarment.

 

The debarment includes any ‘successor in interest’ including any entity which employs or is associated with any partners, directors or other officers considered as successors in interest.

 

The Authority wishes to state that the debarment does not in any way limit the aforementioned suppliers from performing outstanding contracts that were entered into before 5th August, 2022 and which are unrelated to the tender process in question. Procuring entities shall not enter into any new contracts with the aforementioned suppliers after 5th August, 2022.

 

The Authority has issued details of the debarment through a circular which can be accessed on its website www.zppa.org.zm.

 

 

Issued by:

Iñutu Mushambatwa

 

Principal Officer - Public Relations

Zambia Public Procurement Authority

Landline: +260 211 377419

Email: info@zppa.org.zm

 

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ZPPA mandate

The Zambia Public Procurement Authority (ZPPA) is a regulatory body established under section 5 (1) of the Public Procurement Act No.8 of 2020. ZPPA is responsible for standard setting; compliance and performance monitoring; professional development; planning; information management and dissemination in public procurement.

Investigations in Public Procurement

Section 6 (h) of the Public Procurement Act No.8 of 2020 mandates the Authority to investigate and act on complaints received on procurement proceedings from procuring entities, bidders, suppliers or the general public.