‘SENIOR Bulawayo Council officials in tender scams which prejudiced Bulawayo City Council more than US$1 million’.

 

 

SENIOR officials at the Bulawayo City Council have been fingered in tender scams that could have prejudiced the local authority of more than $1 million.

 

A Ministry of Local Government, Public Works and National Housing report on corruption allegations levelled against officials has revealed the massive rot.

The investigation, which has resulted in the suspension of five councillors including deputy mayor, Councillor Gift Banda, has been largely commended by Bulawayo residents.

According to the report, the investigating team found a number of tenders which were awarded under unclear circumstances.

In some cases, contractors were given advance payment guarantees despite the tenders having been cancelled.

The report singled out tenders for the rehabilitation of various plant equipment at Thorngrove, Aisleby three, Luveve and Southern Areas Sewerage Treatment Works (Contract Number 24/2010); appointment of Consolidated Engineers and Merchants [CEM] by council for the same contract and the contract for the supply, installation and commissioning of a cremator at West Park crematorium.

Another contract which raised stink is the allocation of residential stands at Selbourne Brooke which were allegedly corruptly sold to Bulawayo Glass and Allied Products despite the company previously failing to develop the stands.

In the first contract which was being sponsored by the Infrastructural Development Bank of Zimbabwe, council awarded the initial tender to SSI Engineering at a cost of  $6,5 million. However, IDBZ only funded the project to the tune of $800 000.

“Council then requested SSI to provide identified works that could be executed under the $800 000 budget. SSI Engineering gave a lumpsum budget for the works that were to be done under the $800 000. Council then requested for a breakdown from SSI Engineering which the latter failed to produce, leading to a dispute and council later cancelled the contract.

“SSI Engineering received advance payment guarantee of $125 129, being 30 percent advance given to them. There is no evidence of how the advance was utilised or whether it was recovered. Council did not provide evidence of the advance payment bonds for these projects,” reads the report.

Despite having paid the advance payment — which they did not recover — and later cancelling the contract, the local authority went further to award the same contract to Consolidated Engineers and Merchants (CEM), this time at a tender price of $1 035 005, which was $235 000 above the allocated budget offered by IDBZ.

CEM, however, later reduced their tender figure, under suspicious circumstances, with some documents reflecting that they reduced to $797 589 while others reflected that the figure was reduced to $798 598.

The investigating team further noted that the local authority failed to provide information detailing the actual price of the tender or whether the actual job was done despite the contract having been awarded in November 2011.

“Commencement date was agreed from 2 November 2011 to 2 April 2012. The municipal procurement Board on 28 September 2011 noted that the CEM price could have been influenced behind closed doors since they had earlier tendered in excess of a million.

“Council failed to provide further information that would make the team conclude the outcome of the project citing that the file was in the custody of World Vision Zimbabwe. This leads to suspicion of concealment of information on the part of council,” reads the report.

In the Bulawayo Glass and Allied Products tender scam, the company was offered 80 residential stands and six town houses in Selbourne Park in 2004. They were expected in terms of the agreement to fully service the area with sewer, water and roads. The developer was, however, unable to fully service the development citing economic challenges. The company owes the local authority $221 300.

Despite the company’s noted failure to service the stands, councillors in 2014 went on to award the developer a stand to construct town houses, ignoring council management’s advice against the decision.

“The plea was circulated to Management and all objected citing that the developer owed council a significant amount of money and such properties are allocated through tender and allocating him this land would set wrong precedence.

“In light of the Council resolution, the stand in question was valued at $180 000 with a requirement that the purchaser pays a deposit of $72 000.

This deposit was to be paid within two weeks of the offer dated 11/09/2014. It is alleged that the company paid the deposit but the proof of payment was not availed to the investigating team,” reads the report.

Among the recommendations passed by the investigating team, council was ordered to sue the company and further repossess the land which was offered to the company for the construction of the town houses. Vusumuzi Dube, source-Chronicle

photo-Local government minister , Zanu PF National Political Commissar Saviour Kasukuwere

Leave a Comment