PPDA bans 6 suppliers over misconduct

The Public Procurement and Disposal of Assets Authority (PPDA) has banned six suppliers from participating in public procurement due to alleged failure to execute contractual obligation and submission of false information during bidding.
PPDA director-general Edington Chilapondwa disclosed this in Lilongwe on Thursday during a press conference to update the public on efforts to improve procurement services and challenges.

He said: “Debarment of bidders and/or suppliers is aimed at enhancing the realisation of value for money for the public funds. The main reasons for the debarment of the bidders and/or suppliers were failure to execute contractual obligation, and submission of false information during the bidding period.”
The six affected suppliers are Niya Enterprises, Starmile General Dealers, Thuphiemed, Aeon Pharma, Mzamathu Investment and Dawn Investment, according to PPDA.

Their bans range from one to five years with Thuphiemed getting the worst punishment.
Their alleged crimes were committed between 2021 and 2022, records show.
Meanwhile, PPDA has complained that there has been low reporting by the public institutions and other stakeholders for the started of debarment of bidders or suppliers.

Said Chilapondwa: “As of the last financial year, only one of the procuring and disposing entities expressed an interest to submit an application for debarment.
“However, the authority proceeded to debar a total of six bidders.”
Meanwhile, procurement expert Ken Nyirenda has called for a proper and fair system for public institutions to report any misconduct by supplier or bidders.

He was responding to a question on how the country can improve on its reporting amid PPDA’s complaints that there is little interest from public institutions to report firms for debarment.
Nyirenda, who works for a public entity himself, said: “There are procedures that are followed. Part of the procedure is that PPDA conducts hearings and then decides to debar.
He said: “You don’t just go to PPDA and say such a firm made a blunder and debar it. You just present their alleged misconduct and PPDA decides.

“It’s a fair process because if they want to debar someone they give them a chance to be heard.
According to Section 56 of the PPDA Act, debarment is enforced after a hearing involving the concerned parties.”
It reads in part: “Bidder or supplier who has been found liable for the misconduct after the hearing shall be excluded from public procurement for a period commensurate with the gravity of the misconduct as prescribed in the regulations.

“A bidder or supplier aggrieved by a decision of the Authority may appeal to High Court for a judicial review.”
Other reasons for debarment include collusion between the bidder and a public official pertaining to the bidding process; collusion among bidders aimed at fixing prices at artificial and non-competitive levels; attempting to obtain a contract or subcontract and breach of contractual obligations.