MHRC in procurement chaos

Malawi Human Rights Commission (MHRC) is embroiled in a procurement mess which led to cancellation of four contracts worth K102 million, Nation on Sunday has learnt.

The contracts were for provision of services and stationery. The commission attributes the cancellation to flaws in the tendering process, according to letters filed to the contracted suppliers.

“The commission as a public institution, is funded by the government; hence, it is in the best interests of the public that the funds are utilised in a transparent and accountable manner,” MHRC writes to NAT Cleaning Services.

The firm was awarded a K11.4 million deal to offer cleaning services, documents show.

According to copies of the contracts and letters, MHRC awarded 12-month long contracts for provision of security, insurance,  cleaning services and stationery for  the 2023/24 financial year.

The other contracted companies were Kingfisher Insurance Company, Mika Security Services and Innmark General Dealers.

The commission awarded the contracts at the tail end of March 2023, just before the new fiscal year kicked in on April 1.

A contract offered to Mika Security Services valued at K81.4 million and signed by MHRC executive secretary Habiba Osman reads in part: “I am pleased to inform you that you have been awarded a framework agreement for the provision of security services at the Malawi Human Rights Commission offices and residences of senior officers.”

However, a week later, the commission wrote the contracted firms informing them that it was withholding the contracts pending investigations.

In a follow-up correspondence, MHRC deputy executive secretary Winston Mwafulirwa informed the firms that it has withdrawn the contracts pending investigations.

In a letter to NAT, dated May 8 2023, MHRC writes: “The commission upon conducting internal investigations has arrived at the decision to rescind all its contracts which were awarded by way of tender upon the completion of its recent tender prequalification process…

“Therefore, it is in accordance with this that the commission has arrived at the decision to rescind all its awarded contracts and re-commence the tender qualification process.”

Kingfisher’s contract was pegged at K8 million while Innmark was handed a K1.6 million stationery supply deal.

In an interview, Mika Guard Services managing director James Kachala confirmed receiving correspondence from MHRC announcing the cancellation of the contract. He expressed disappointment. 

“When you are offered a contract, you are excited and your focus is to perform. So, just being told that they have cancelled the contract, a normal person can’t accept it,” he said.

Kachala, however, said he has not decided the next course of action as he is yet to meet the commission to discuss the matter.

MHRC had offered to meet Mika representatives to conclude the cancellation, Kachala confirmed.

NAT managing director Alice Madinga-Bonongwe said she would not comment on the matter while Kingfisher was yet to respond to our questionnaire.

On their part, Innmark representatives have not been picking our calls.

Osman was yet respond to our questionnaire at press time yesterday.

The commission’s procurement officer Akoma Sodzapanja refused to comment on the issue.

A representative of one of the firms told Nation on Sunday that one of the reasons for the rescission was that the tenders were not publicised in the dailies.

The source, who asked not to be mentioned, was surprised with the justification, pointing out that the contracts did not meet the Public Procurement and Disposal of Assets Authority (PPDA) threshold for No Objection clearance.

“There is a threshold that they follow. In the case of MHRC, for contracts of K250 million and above they are supposed to seek No Objection from PPDA and publish intention to award the contract in the two widely circulated newspapers. In our case, the contracts are below that threshold,” the firm’s representative said.

A letter dated 30 June 2020 in which the PPDA informs government ministries, departments and agencies about the thresholds, shows that MHRC falls in category B of the prescribed No Objection threshold.

Under it, threshold for goods are at K250 million, works contracts at K500 million, routine services, which comprise cleaning and security, are pegged at K250 million and K250 million for consultancy services.

PPDA public relations manager Kate Kujaliwa had not responded to our questionnaire seeking to establish if contracts that fall below the threshold are not to be publicised in the newspaper.