LOCAL Government and Rural Development minister Gary Nkombo says there is no scandal in the procurement of 156 new Constituency Development Fund (CDF, as reported in the media.
Two weeks ago, the Public Accounts Committee (PAC) heard how the Ministry of Health and the Zambia Medicine and Medical Supply Agency (ZAMMSA) procured 156 ambulances worth K336,173,760 but only 11 had been delivered.
The committee heard that one of the companies contracted to supply half of the 156 ambulances under CDF was a pharmacy in Lusaka’s Garden Compound.
Commenting on the matter through a ministerial statement in the National Assembly yesterday, Nkombo disclosed that due diligence was exercised on the companies that were awarded the tender.
He said all the companies that were contracted to supply CDF Life Support Ambulances went through a transparent bidding process.
Nkombo further said that the Ministry has not received or seen any report from the Auditor General or indeed any government Agency questioning the procurement method, price or delivery of the 156 ambulances.
The minister explained that the procurement was guided by a Zambia Public Procurement Authority (ZPPA) circular and ZAMMSA Act, which prioritise citizen owned businesses for CDF funded projects.
“On 15th May, 2024, two citizen-owned companies ACE Pharmaceutical Limited and Aqueous Investment Limited were awarded and signed a contract to supply and deliver 78 basic life support ambulances each. The contract is valid for 18 months, effective 10th May, 2024,” he explained.
“In line with the law, each of the successful companies was paid US$1.5 Million as 25 percent down payment.”
The delivery period for these ambulances as contained in the contract was between 16-20 weeks, upon receipt of the down payment whose delivery period expired on December 1, 2024.
“As of today, 5th December, 2024, 11 ambulances are in the country,” explained Nkombo.
Other 18 ambulances are under shipment and will be in the country soon going by the documentation availed to the Ministry by the contracted suppliers.
He said the projection is that at least 50 ambulances will be in the country by 31st December, 2024 and the balance 106 ambulances by 31 May, 2025.
“The delays are unfortunate but beyond our control, primarily due to supply chain disruptions for the vehicle chassis. However, we are working closely with suppliers and stakeholders to resolve these challenges,” he added.
Nkombo noted that government secured a competitive deal for the ambulances, each priced at US$9,500 nearly half the cost of similar procurements in the past.
The ambulances, equipped with 2024 Land Cruiser models and diesel engines meet high quality standards as told by the minister.
Nkombo reiterated government’s commitment to empowering Zambian owned businesses irrespective of their size or social standing, provided they meet the legal requirements.
By Catherine Pule
Kalemba, December 6, 2024
