MIN coy on K18bn MZ youth centre

Construction of Mzuzu Youth Centre should have started 10 years ago, but the politically-hyped project is yet take off despite a successful bidder for the contract being identified.

This is contrary to the Public Procurement and Disposal of Assets Authority (PPDA) advice and direction provided which in January this year, re-validated a ‘No Objection’ it granted last year to have the contract awarded to a successful bidder.

A letter dated January 20 2021 we have seen, shows that PPDA advised the Ministry of Youth and Sports to proceed to sign the contract at K18 946 630 292.47 with Einstein Construction.

“Kindly be advised that the ‘No Objection’ was already re-validated on January 7, 2021. Please note that re-validation was required because the ‘No Objection’ had expired; and that re-validation means restoring what was there.

“Since your request is not seeking a fresh clearance, then you may proceed to sign the contract at K18 946 630 292.47. Please ensure that all records generated in this procurement proceeding are properly kept in line with Section 32 of the PPD Act 2017,” reads part of re-validation document signed by PPDA acting director general Timothy Kalembo, copied to Secretary to the Treasury and the Auditor General.

But, in an interview, Minister for Youth and Sports Ulemu Msungama said a ‘No Objection’ from PPDA “is not an enforcement of a position and the ministry can make changes, as long as such is within the law”.

A procurement officer working in government has described the ministry’s position as strange, saying it is suspicious that the successful bidder’s capacity is questioned way after evaluation, adding that if that is the case, then there is need for a re-evaluation.

The source said while the law empowers the procurement entity to cancel procurement proceedings, the case in point is interesting— wondering how the ministry allowed PPDA to re-validate the ‘No Objection’ only to have them change heart on the matter.

“The safest way is to do a re-evaluation. A new team has to be re-constituted to do another evaluation or, better still, re-tender and have fresh submissions. The second option is both resource demanding and time consuming, but it may help to clear the air,” said the procurement specialist who refused to be named.

At least three companies—Plem Construction, Paramount Holdings and Einstein Construction—competed in the bid for the project and Einstein Construction emerged successful bidder after an evaluation process.

In a written response, Msungama said his ministry is reviewing the process relating to the project and, currently, a decision has not yet been made on who is to execute the project.

“It does not mean that the client [ministry] cannot bring any changes as long as they are legally acceptable and that the PPDA has approved the change,” he said.

Kalembo said his office has written the Ministry of Youth and Sports to share documentation on the same and will only say more once they get the response from the procuring entity.

“Under Section 51 of the PPDA Act, management of contracts is the responsibility of the procuring and disposing entity; hence, it will be fair to hear the side of the story of the ministry before commenting,” he said.

Section 46 of the PPDA Act allows for cancellation of the procurement proceedings “in the public interest” without incurring thereby any liability to the bidders.

The same law, under Section 48, demands that after a ‘No Objection’ has been granted, the procuring entity should publish intention to award contract to the successful bidder “in two widely circulated newspapers and on the Authority’s website for 14 days”.

We have not managed to secure evidence if this was done from both PPDA and the Ministry as our demand for such information appeared to have been ignored.

Mzuzu Youth Centre project was planned to start in 2011 and it has witnessed more promises from previous regimes, without any progress on the ground. More than a ground-breaking ceremony has taken place and funds have been used yet, today, the project is as empty as it was years back.

In an interview on Thursday, Mzuzu City Council spokesperson McDonald Gondwe said the detailed architectural drawings for the project have not been submitted to the council for approval.

“The design is not yet handed over to us despite the ministry being advised to do so. We are required to get the design for analysis and provide feedback if it is in tandem with the city’s plan,” he said.

Meanwhile, Mzuzu-based youth advocate Bright Mkandawire has petitioned Msungama over change of contractor and the project’s unnecessary delays.

According to the petition, the advocate has faulted some ministry officials of favouring a foreign contractor at the expense of local firms such as Einstein Construction, who was earlier selected to do the work.

Msungama, in an interview, rubbished the claims by the youth advocate, alleging the contractor (Einstein Construction) that was awarded the contract early last year— has shown no interest in the work.

“The contractor did not show interest in the work. He was written to come and sign the contract, to start the work, but he did not turn up within the specified five days. This shows lack of seriousness. We cannot play with taxpayers’ money by giving out the contract to someone who is not serious. This is a big project, worth billions,” he said.

The minister further said the information they have is that the contractor has four government projects, which he is yet to complete.

Einstein Construction director Kenneth Khonje denied being invited by the ministry to sign the contract.

“If we have managed to pass all the vetting processes up to the point that we were chosen, is it applicable that we can fail to sign for the contract? It does not make sense. What we know is that we won the contract and we are still waiting for the ministry to invite us to sign the contract so that we should start the work,” he said.

The youth centre project has been a ghost project for over eight years, despite government conducting five ground-breaking ceremonies and the former president Peter Mutharika assuring the youth in Mzuzu that construction would start in 2016.

Government has been allocating millions of kwacha to the project in various national budgets.