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Nqobile Bhebhe, [email protected]

THE Government will intensify a blacklisting approach for service providers who demonstrate poor performance on contracted projects, as it tightens procurement processes.

In his recent budget statement, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube articulated that while Government thrust has always prioritised the promotion of local resources including contractors in service delivery, procurement procedures need to yield the best possible outcomes regarding both quality and turnaround times.

“Consistent with the above and noting the increased poor performance by some service providers, the Blacklisting Approach of contractors will further be enforced whilst penalty clauses in contracts will be invoked, said Prof Ncube.

“Experiences over the last few years evidently reflect the urgent need to tighten our procurement processes to ensure effective due diligence in the bidding and evaluation processes to guarantee quality and timely delivery of services.

Prof Ncube noted that experiences over the years suggest that implementing agencies continue to commit and enter into contracts outside the framework of the budget while others initiate new projects during budget implementation.

“The above not only affects budget credibility and predictability but also undermines principles of programme-based budget and further compromises effective budget implementation especially cash flow management and forecasting.

“Going forward and as previously reminded, for the avoidance of doubt, implementing agencies should not sign contracts above US$2 million without Treasury concurrence whilst at the same time, any new projects initiated during the budget implementation stage will not be funded unless it’s purely reacting to emergency situations.”

Prof Ncube said that noting the increased incidences of variations majority being outside allowable threshold, going forward, approval of contracts and funding for projects should be subject to the implementing agencies developing comprehensive designs and dully costed bill of quantities.

“In the event that capacities to undertake design work and bill of quantities is beyond the capacity of the (Ministries, Departments, and Agencies) MDA, it is appropriate for such MDAs to engage the same from reputable consultancy firms or institutions.”

The Government has been blacklisting contractors for unlawfully diverting payments they received for supplying goods and services to the illegal foreign currency parallel market.

The continued implementation of the Value for Money principle in Government has realised savings that have enabled the implementation of programmes and projects that benefit citizens.

The principle was introduced after it was established that contractors were fleecing the Government through inflated invoices and then taking the money to the parallel market for foreign currency, a development that pushed up exchange rates and consequently inflation.