UPND asks ACC to probe fertilizer supply contract

The United Party for National Development (UPND) has asked the Anti Corruption Commission to investigate allegations of overpricing in the fertilizer supply contract awarded to Nyiombo Investment Limited and Neira’s Investment Limited worth millions of dollars by the Ministry of Agriculture and Livestock.

In a letter dated 20th May,2015 addressed to the ACC Director General obtained by QFM News,UPND Chairperson for Information Charles Kakoma says the ACC should immediately investigate the alleged US$40 million overpricing and irregular award of the contracts.

Mr Kakoma who has also attached signed documents from the Ministry of Agriculture and Nitrogen Chemical of Zambia pertaining to awarding of the fertilizer supply contracts says while there were 13 bidders who tendered for the fertilizer contract, only two firms were awarded the contracts, with Nyiombo being awarded a $56 million contract and Neira’s Investment a contract of $22 million.

He points out that while Nyiombo’s average bid for Lot 1 and 4 was at $990 per ton, the lowest bidder was Greenbelt Fertilizer at $597 per ton.

Mr Kakoma adds that for Lot 5 Neira’s bid was $882 per ton, while the lowest was $600, pointing out that Lot 4 was not awarded despite the fact that it was also bid for.

Mr Kakoma says the award of tenders to Nyiombo and Neira’s Investment was overpriced by over $40 million from the lowest bidder.

He says the fertilizer contracts should have cost Zambia only US$38 million and not US$78 million.