Q FM Africa's Modern Radio
Business & Financial Analyst Blessings Kafwanka
Business & Financial Analyst Blessings Kafwanka says the procurement of the 42 fire trucks at an exorbitant cost of $42 million is an indication of financial mismanagement and inherent weaknesses that exist in the procurement process in most government ministries and State owned enterprises.
Mr. Kafwanka tells QTV News that the company that was engaged to supply the fire trucks is not a manufacturer or distributor of firefighting equipment.
He says a quick online check reveals that the supplier of the fire trucks is principally a local procurement provider, they take over the entire sourcing/procurement process and import by offering local corporations a variety of sources and procurement services.
He thinks that the supplier, Grandview International, offers an essential service to businesses that may not have the capacity or simply not willing to establish a procurement department due to the cost implications that arise.
Mr. Kafwanka says with the oversight and strict implementation of the regulations set by Zambia Public Procurement Agency (ZPPA), the procurement process can be done more efficiently.
He explains that the decision to engage Grandview international to perform a function that should have been performed by a procurement department which probably has better qualified & experienced personnel who are not only on payroll but receiving allowances such as housing, medical, education and a retirement package raises a lot of questions.
The Business & Financial Analyst says the purchase of the fire trucks at an exaggerated cost of $42 million could have been avoided by eliminating intermediaries and inviting bids only from manufactures and dealers of the specified equipment.
Mr. Kafwanka says lack of action on the recommendations made by the Auditor General’s reports on financial mismanagement further compounds this problem.