Roads contracts under spotlight
Details have emerged that three of the 15 contractors Roads Authority (RA) intends to award K7 billion contracts could be in conflict with the law as their directors are either under probe or facing criminal charges.
Regulations of Standard Bidding Document in Part 1 Section 4 restrain firms or their subsidiaries from taking part in public contracts if their directors are under investigation or already facing criminal charges.
The three on the list are SOS Construction Limited, SK Civil & Building Contractors and Jags/Casone JV whose directors are either under investigation for alleged fraud or are already answering criminal charges in courts.
In an interview last week, Roads Fund Administration (RFA) spokesperson Masauko Mngwaluko confirmed receiving complaints through tip-offs anonymous against SOS Construction Limited, but said RFA referred the matter to RA as the contracting agency.
“We took the process of investigating using what we call technical audit and the results were communicated to Roads Authority being the implementing agency. In terms of how they resolved the matter, we don’t know,” he said.
On the other hand, National Construction Industry Council (NCIC) corporate affairs officer Lyford Gideon also confirmed handling the issue after receiving complaints from RFA.
He said: “We have powers over our players who are consultants and contractors, so we are handling that issue. Investigations have been going on and very soon we will issue a report on the matter to the complainants and once that is done RFA or RA will share the outcome.”
In a notification of intention to award the contracts dated November 9 2022, RA said it was planning to award SOS Construction a contract worth K652 200 554.18 under procurement reference number RA/MAI/2022-2023/T/PM/CR/NU/28 to widen roads along the M1 in Ntcheu.
When contacted last week, SOS Construction owner Brahim Dodia referred The Nation to his project manager only identified as Green.
The project manager declined to give his full particulars, but said: “As per procedure, we are not allowed to speak anything concerning contractual matters so talk to the client who is Roads Authority.”
NCIC, whose mandate is to regulate, develop and promote the construction industry in the country, said it is probing SOS Construction Limited over a contract it was awarded by RA to rehabilitate Area 23 Road in Lilongwe last year.
Jags/Casone JV is owned by interdicted Ministry of Energy director of energy Cassius Chiwambo while businessperson Smollet Kachere is the group managing director for SK Civil & Building Contractors.
Kachere is the main suspect behind the missing of 14 trucks carrying 7 500 bags of maize which his other company Kachere Agricultural Trading was shipping from Agricultural Development and Marketing Corporation (Admarc) depots in the Northern Region to the National Food Reserve Agency (NFRA) storage areas in Lilongwe.
He was arrested by Fiscal Police in September this year before being released on court bail.
On the other hand, Chiwambo is also answering criminal charges following his arrest last year by the Anti-Corruption Bureau (ACB) on suspicion that he interfered with the procurement of power line construction materials for the phase nine of the Malawi Rural Electrification Programme by sidelining an Internal Procurement and Disposal Committee (IPDC) .
He was formally charged by the Lilongwe Magistrate’s Court before being granted bail in December 16 2021. He is answering charges relating to fraud, racketeering and bribery.
The interdicted director was again arrested by ACB on October 28 2022 on allegations that he, alongside another public servant, demanded $15 000 and received $5 000 plus K500 000 from an investor at Ilomba Granite Mining Company in Chitipa to facilitate renewal of a mining licence. He was taken to court where he was granted another bail.
Chiwambo has not been available for his reaction while Kachere briefly said “the issues are not related” before cutting the line.
But RA spokesperson Portia Kajanga said in an interview publication of notices on intention to award contracts to various firms is meant to get feedback from stakeholders.
She said as a government institution, RA follows guidelines in its procurement procedures as stipulated in Section 48 of the Public Procurement and Disposal of Assets Act of 2017.
In a written response, Kajanga said: “This is the reason the RA published the intention to award in the papers, so that the public should inform us of any reason(s) we should not award contracts to the recommended contractors as indicated in the intention to award advert.
“At the end of the stand-still period, the authority will conduct a due diligence for verification of any allegations and respond accordingly in consultation with the PPDA [Public Procurement and Disposal of Assets Authority].
“You are, therefore, encouraged to write the RA on any reason(s) you think the recommended contractors should not be awarded the contracts indicated in the notice of intention to award contracts.”
However, procurement specialist Edward Chando observed in an interview that while laws are silent on how to deal with such firms or directors, RA needed to perform due diligence, bearing in mind that all the issues the companies or their directors are embroiled in were already in public domain.
Jags/Casone JV will be awarded a contract for K717 704 531.25 under contract number RA/MAI/2022-2023/T/BR/CR/SA/11 to construct Mphatsanjoka Box Culvert on the Salima-Senga Bay (S122) Road in Salima.
On the other hand, RA intends to grant SK Civil & Building Contractors a deal amounting to K342 716 973. 90 under agreement number RA/MAI/2022-2023/T/BR/SR/CK/12. The firm is expected to construct Nkombezi Reinforced Concrete Box Culvert in M001 Road in Chikwawa.
