…resort to arm-twisting government to increase the flat bid to around US$1000, against President Hichilema’s announced capped price of US$850
By NATION REPORTER
ALL companies that were awarded contracts to procure and supply Urea fertiliser for the 2023/2024 farming season have reportedly refused to sign their contracts and are now arm-twisting Government to increase the prescribed flat price of US$850 to a price around US$1, 000, it has been disclosed.
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While opening the third Session of the 13th National Assembly, President Hakainde Hichilema capped the price of fertiliser to US$850, but suppliers are said to have rejected the flat rate and have resorted to blackmailing Government so that it could increase the price above the recommended figure.
Sources close to the development have stated that some of the companies which were awarded the contracts do not have fertiliser in stock and would not be able to meet the September 30 deadline to complete their delivery.
The sources said initially, Government had floated an open tender, which had attracted about 44 bidders but cancelled only to be reinstated as a single-source, which saw the number of bidders reduced to 13, with the most expensive company being the most favourable. However, the single-sourced tender was also to be cancelled and was to be replaced with a secret bidding process which saw the number of bidders this time reduced to only eight.
On Friday last week, the secretly selected bidders were expected to sign their contracts at the flat rate of US$850 but have all rejected the capped rate and are demanding that the price be adjusted upwards.
“As you may know, the contracts for the last eight bidders were supposed to have been signed on Friday last week. But all the bidders have refused to sign the contracts and are now holding government to ransom by dictating their own price which is much higher than what President Hichilema announced in Parliament. This could be something the President does not know that some players are attempting to arm-twist government to increase the flat price to something much higher,” the sources said.
The sources explained that in fact, government technocrats at the Ministry of Agriculture had undertaken an inspection tour to the companies that were shortlisted but what was shocking was that players without the commodity were awarded the contracts.
The 13 companies that were single-sourced in a tender that was to be cancelled by Green Mbozi, the Ministry of Agriculture Permanent Secretary included Agrizam, Doron Commodities Ltd, Alpha Commodities, Growmax Zambia Limited, ETG Agri Inputs, Federal Eng Limited, and Kovenant Procure.
Others were Portland Commodities, Bestmed ServicesLimited, Greenfield Commodities, Agro Trade Exchange, Taimwima and Midwest.
The number of bidders was further reduced to eight with the most expensive company remaining the most favourable from which the cheapest bidder, a Zambians company Gromax, which had initially been awarded a contract to supply Western Province being left out.
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