By Ambassador Emmanuel Mwamba
During the official opening of a workshop for Ministers, Permanent Secretaries and others, President Hakainde Hichilema made some startling revelations.
He alleged that some contracts for feeder roads were given to companies that had no technical capacity to undertake the works, and out of a budgeted figure of K1.3billion, contracts exceeding K12.9billion were signed in a period of four years.
He said some contracts were given to former Ministers and MPs, including those “without even a shovel”!
These statements are deeply concerning as the President appears not be sufficiently briefed.
It appears that we have to discuss basic issues of how a government contract is awarded and the basic contract management of such contracts before we can discuss the allegations!
GOVERNMENT AWARDS CONTRACT
Government issues an advert for an open tender or closed bid for works that have been planned to be done.
A Bill of Quantities is issued by Government to bidders to show the scope of work required to be done.
Bidders have to demonstrate capacity to hire or hold or buy equipment and machinery to undertake such works.
Before the award is given to a successful bidder, the process is preceded by both technical and financial evaluation of all the bidders.
In the case of feeder roads, local authorities identify the roads required to be done, introduce or justify factors such as road required for agriculture purposes or accessibility by the community to education or hospital facilities.
The bidders have to be registered and graded ( from G1-G6) by the National Construction Council (NCC).
One has to familiarize oneself with the issue of how NCC registers contractors, and therefore the allegations that a contractor without even a wheel-burrow obtained a contract, doesn’t arise.
The Provincial Engineers submit scope and estimates of works that are sent to Lusaka for checking and approval.
In the event that a road is not budgeted for( e.g disasters such as roads or bridges swept away by floods or other reasons), treasury authority has to be obtained from the Secretary to Treasury committing to fund such a project before the Attorney General can approve such a contract.
I noticed that the President placed emphasis on the role of the Attorney General in the approval process.
The Attorney General comes at the tail-end to check legal compliance, secure government interests and the enforcibility of such a contract.
CONTRACT AWARDED, 10% ADVANCE PAID
Before Government can pay any cash advance to the contract sum, it requires that a contractor submits an advance payment guarantee or performance Bond obtained from the Bank or Insurance Company.
It must be noted that no bank or Insurance company will issue a Bond to such a contractor, without obtaining requisite collateral security.
In Zambia, advance payment is 10% of the contract sum and has been so since 2014.
In the event that the contractor doesn’t perform or does not do any works assigned, Government can recover its money by cashing that Bond.
In construction any further payments are guided by Interim Payment Certificates (IPC) showing work done at the cost of the contractor.
Therefore, there is no exposure to Government that is not secured as government can cash the Bond if there is no work done or no performance recorded.
PRICING OF ROADS
This is guided by the work to be done. A feeder/gravel road being done in swampy areas of Luapula or Western Provinces can not cost the same as one done in other favorable areas.
I remember that because this sector was dominated by foreign contractors, Government decided to support local contractors with higher value contracts.
Government hatched the Contractor Finance Initiative ( CFI) comprising suppliers of equipment on oneside and the NRFA, RDA, Ministries of Local Government on the other.
This was an affirmative action designed to help local contractors access machinery and equipment to benefit from government’s higher value road contracts.
On the houses which the President stated that were highly priced and each could cost about K30m, It appears he didn’t factor in cost of roads, driveways, parking, water reticulation, water tanks, bulk sewer disposal systems, step-down transformers and other such associated costs.
THOSE IN PARLIAMENT WHO GOT GOVERNMENT CONTRACTS MUST NOT TALK
This is a highly unfortunate statement made by the President.
It shows that he is using the fight against corruption to intimidate his opponents and cow them into political submission and silence.
FEEDER ROADS NOT DONE IN 3 PROVINCES
I need to refer to this as Hon. Garry Nkombo presented to Parliament that the 3 Provinces were neglected and excluded from doing roads.
But these are Provinces that enjoyed high value projects such as the Chingola-Solwezi road(NW), Mongu-Kalabo road, Mongu-Sesheke Road and the Sioma Bridge, Mongu-Senanga road(Western) and the $2billion Kafue Gorge, $275m Itezhi Itezhi Dam, $259m Kazungula Bridge ( Southern).
If there was discrimination, the terrible Lusaka-Serenje-Mpika-Kasama road and Mpika- Chinsali-Isoka-Nakonde roads, Serenje-Mansa-Samfya would have been done.
CONCLUSION
It is clear that the President is being misled by those keen to keep their jobs.
Further, it shows that despite the huge number of presidential advisors, there seems to be a crisis in the advisory unit.
His recent public statements expose his ignorance about the workings of government.
The President should not lament and demonstrate unjustified exasperation because he has technical capacity through his advisors, other technical persons in Ministries to understand and root out genuine corruption than crying wolf!
However, if there are people that committed crimes, let the law take its course. Stop the charade!
