GOVERNMENT is finalising a public procurement audit to authenticate prices which were submitted by suppliers whose payments were withheld, a senior official has said.
Contrary to misconceptions that Treasury has withheld
payment to all suppliers of goods and services, the suspension applies to only
a third of providers accused of inflating prices, with authorities ready to
resume disbursements once prices are adjusted.
Travel agencies, food and beverages providers, computer
traders and players in the hospitality industry are among the blacklisted
suppliers. In an interview with our Harare Bureau, Permanent Secretary for
Finance and Economic Development, Mr George Guvamatanga said Government will
continue withholding payments to suppliers charging exorbitant prices
“Government never stopped paying its contractors and
suppliers, there is a misconception that Government has stopped paying for
goods and services supplied. We are not only paying suppliers who are inflating
their prices.
“These are suppliers who have been pegging their prices
using the parallel markets rates and we will not be paying them until they
adjust their prices. And these contractors make up only 30 percent of all the
contractors that we normally pay. We are still compiling the amounts that we
owe, however I can say that Government has the money to pay them,” he said.
Mr Guvamatanga said some suppliers were inflating prices by
over four or five times the market value.
“In other countries, Government being the biggest buyer
would be getting discounts but it is different here because suppliers inflate
their prices. For example, a company wanted to supply printers to one of the
Government Ministries for $1,4 million. The same printers are going for $400
000 in the market.
“Some were quoting a kg of economy beef for US$18,45 and a
kg of chicken for US$12. Some in the hotel industry where quoting $168 000 a
room and US$89 for breakfast alone. Travel agents were supplying tickets to
Victoria Falls for US$769. What is important to note is most of these suppliers
demanded their dues in local currency which would then convert to US dollars.”
He added that the fall of the local currency on the
parallel market some months ago was caused by excess money created from
exhorbitant prices charged by suppliers.
“We have closed the source that was being exploited by
suppliers. There was artificial demand that was created by suppliers who were
charging exorbitant prices to Government and taking the money to the parallel
market. The reduction in demand will also be seen in supermarkets because there
is no excess money in the economy. The reduced demand will also redress the
pricing system in the economy,” said Mr Guvamatanga.
Last month, President Mnangagwa said accounting officers
who fail to detect pricing malpractices would be deemed criminally negligent
and held personally liable in terms of the Public Finance Management Act while
suppliers who generate invoices based on black market exchange rates would be
banned.
Asked whether the Zimbabwe Ant-Corruption Commission will
initiate investigations on malpractices in public procurement, the anti-graft
body’s spokesperson, Commissioner John Makamure said:
“I will have to check with the secretariat if they are
working on such cases.” Sunday Mail
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