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2^nd July 2020

PRESS RELEASE

Zambia Public Procurement Authority Permanently Bars, Rainehard Logistics Limited and its Directors from Participating in Public Procurement

All Procuring Entities are expected to enforce the debarment by not having any dealings with Rainehard Logistics Limited and its Directors or awarding them any contracts

LUSAKA, (ZPPA News) – THE Zambia Public Procurement Authority (ZPPA) has effective immediately, permanently barred Rainehard Logistics Limited and its directors from participating in public procurement in Zambia, for failure to execute contract number CTC/CDF/CCRB relating to the construction of a 1x3 classroom block  at Chisamu Primary School at Ng’ombe Illede in Chirundu, even after getting an advance payment.

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.

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:

1. 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;
2. 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).
3. conviction of a criminal offence relating to obtaining or attempting to obtain a contract or subcontract; or
4. conviction of a crime related to business or professional activities.

And in a circular dated June 29^th, 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,” declared Mr. Chichoni.

He also urged procuring entities to enforce the debarment by not awarding any contracts to Rainehard Logistics Limited and its directors or inviting them to submit bids.

Mr. Chichoni explained that the debarment included all “successors in interest” which, employed or were associated with any directors of Rainehard Logistics Limited.

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For more information contact: Laura Mushaukwa-Hamusute, Principal Officer Public Relations, Email: Laura.Hamusute@zppa.org.zm, Phone: +260211377419/+260966220357

 

About the Zambia Public Procurement Authority www.zppa.org.zm

 

The Zambia Public Procurement Authority (ZPPA) was established under the Public Procurement Act No. 12 to regulate public procurement. In discharging its function, ZPPA shall uphold its shared values of fairness, accountability, integrity, mutual respect, transparency, confidentiality, professionalism and excellence.

 

About the Electronic Government Procurement System (e-GP) www.zppa.org.zm/epps

 

The e-GP System is simply the processing of procurement information and transactions using the computer and the internet. It is a platform for all electronic government public procurement processes. All suppliers and procuring entities are required to register on the e-GP System in order to use it. The objective of the e-GP System is to promote good governance, value for money and social economic development. It is envisaged that once the system is fully rolled out, government will reduce costs and more money can be channelled to developmental projects.