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PPDA bans 2 suppliers over fake tax documents

Public Procurement and Disposal of Assets Authority (PPDA) has banned two suppliers PP Tyres and Spares and Standard Solutions from participating in public procurement and disposal processes.

According to a press statement, PPDA found both companies guilty of submitting fraudulent tax clearances. PP Tyres is disbarred for one year, while Standard Solutions faces a three-year ban.

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“The ground f o r disbarment is a violation of Section 56 (2)(b) of the PPDA Act, 2017, due to the submission of fake tax clearance during supplier registration,” the statement reads.

The decision restricts both companies, effective October 20 2024, from public procurement participation during their respective debarment periods.

However, the ruling does not apply retroactively to previous engagements, PPDA pointed out.

“Ministries, departments, and agencies have been duly notified of this decision, along with the list of affected companies,” the statement further explains.

PPDA cited its authority under Section 6 (1)(g) and Section 56 of the Public Procurement and Disposal of Public Assets Act of 2017.

It empowers it to “suspend, debar, or exclude any bidder, supplier, contractor, consultant, or service provider who breaches any provision of the Act.”

The disbarred firms have the right to appeal the decision, which will remain in effect unless overturned by the High Court or until the expiration of the debarment period.

Efforts to obtain a response from the disbarred entities were unsuccessful as calls to their phones went unanswered.

The disbarments raise the total number of banned entities to 10 within the past two months, with the PPDA having also sanctioned eight firms in September.

Re a c t ing t o the development, procurement expert Anord Chirwa expressed shock at the figures, describing them as “very high.”

“This shows that the level of compliance is very low. This is not about the entities being ignorant,” he remarked.

The former PPDA acting director general noted that document forgery is widespread in procurement processes.

“Forging documents has been very common. They could forge bank bonds. When you cross-check with the bank, you discover that the documents are forged.

“It is a good move by the PPDA to disbar companies for such violations, because such companies are risky,” he said in a phone interview.

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