The Public Procurement and Disposal of Assets Authority (PPDA) has finished analysing the list of suppliers the Attorney General (AG) blacklisted and 30 companies will soon be called for hearing.
PPDA spokesperson Grace Thipa confirmed in a response to a questionnaire that they have been working with the AG on this matter.
AG Thabo Chakaka-Nyirenda, in three separate letters dated November 30 2121, instructed PPDA, the Malawi Police Service and the Malawi Defence Force not to deal with some companies owned by businesspersons of Asian descent.
Thipa said the PPDA director general (DG) Edington Chilapondwa, pursuant to Section 56 of the PPDA Act, restricted government’s procuring and disposing entities (PDE) from doing business with the 30 companies under investigation.
She said the restriction issued against the companies meant that no contract would be issued to them unless the office of the AG and the PPDA clear them.
Thipa said: “Seven companies have so far been suspended pursuant to regulation 192 of the Public Procurement Regulations. The suspension makes room for investigations prior to commencement of debarment hearings. The suspension is for 90 days.”
The suspended firms, she said, have a right to seek clarification from the director general.
PPDA said debarment is a process and the first step of suspension and restriction has been taken.
Thipa explained: “The effect of the suspension is that they provide an injunctive relief barring the companies from doing business with government ministries, departments and agencies pending the conclusion of the ongoing investigations.
“This, in essence, is a temporary debarment pending the outcome of the investigations and possible hearings. Hearings will be set soon as investigations are concluded. Once the AG submits to us the final detailed evidence, hearings shall commence immediately.”
No firm, she said, is debarred permanently without being heard.
Chakaka-Nyirenda, in a separate interview, also confirmed PPDA was acting on his instruction and it was work in progress.
“At the stage we are, there are things I cannot disclose, but I have continued engaging them and we are making some progress,” he said.
One of the businesspersons, whose companies were blacklisted, is Abdul Karim Batatawala but in a response to a questionnaire on Friday, one of his lawyers, Alex Nampota, said he had no instructions to challenge the debarment by way of being heard.
Chilapondwa last November said their lawyer was expected to give legal advice on the AG’s instruction.
The DG explained: “We received the AG’s advice. But what you should know is that debarment is a long process. We have instructed our lawyer here to take up the matter. When that process is done, our counsel will come up with a report, and we will then make our position known to the AG.
“If the AG’s decision is upheld, we will proceed to inform all government ministries, departments and agencies about this decision not to deal with the firms the AG has listed.”
According to Section 20 of the PPDA Act, it empowers the DG, after reasonable notice to the bidder or supplier, and after providing reasonable opportunity for that bidder or supplier to be heard and consultation with the affected procuring entities, to exclude a bidder or supplier from participation in procurement for the misconduct prescribed in this Act and the Regulations.
And Section 23 further states that a procuring entity may (a) reject all bids at any time prior to the acceptance of a bid, without incurring thereby any liability to the bidders; and (b) cancel the procurement proceedings in the public interest, without incurring thereby any liability to the bidders.
The AG had argued the companies concerned have court cases against government and that most of the cases were questionable as they range from breach of contract to payment of interests.
The affected companies include Africa Commercial Agency, Ark Agencies, Ary Solutions, Challenge International, Elegant General Dealers, Gratolite General Dealer, HG General Suppliers, Iris Group SA, Jeta 200 and Kasco Enterprises.
Others are L & G Tools and Engineering, Lido Electrical and Engineering, Milton Connection, Novatech Engineering Suppliers, Reliance Trading, SS Express Agency, Top Prima Ltd, Uni General Trading, Universal Kit Suppliers and Zam Zam General Dealers
