LILONGWE-(MaraviPost)-Busted! It has been established that Malawi Defence (MDF) in support from Public Procurement and Disposal of Assets Authority (PPDA) fraudulently awarded two substandard companies namely J Browns Investment and AKI Investments to supply uniforms and protective clothing.

The Maravi Post understands that MDF as a public procuring and disposal entity advertised for a tender for the supply of Military uniforms and protective clothing few months ago, but the choice for the two companies has raised unanswered questions.

Surprisingly, on October 9,2020, the MDF’s PDE authored a letter of No objection to PPDA to award the contracts to two companies who were deemed as successful bidders without thorough scrutiny.

This is budget contracts for the two companies:

1). Lot 1 to J Browns Investment as the lowest evaluated bidder and were given a contract of MK3,215,950.000.00.

2). Lot 2 to AKI Investments as the lowest evaluated bidder and were given a contract for MK1,016,526,692.00.

Two companies background

J Browns Investment is owned by a senior member of the Tonse administration key partner Malawi Congress Party (MCP) Rachel Zulu a wife to another senior member of the same party; George Zulu,both of them are seating Member of Parliament (MPs).

The company has no capacity to handle or deliver goods as noted in the past.

It is alleged J Browns investment shows has experience in stationery and provided of previous similar contracts performed in both lots for supply and delivery of protective equipment from Concern Worldwide for the sum of MK37, 862, 500.00, World Vision for the sum of MK68, 000, 000.00, National Construction Industry of Malawi in the sum of MK35, 000, 000.00.

It is clear that this bidder does not reach the minimum threshold of MK500, 000, 000.00 in respect of the financial capacity as required by the bidding document.

The bid submitted by J Browns shows that its PPDA certificate of registration was as Supplier of Goods in category 5, that which may bid for procurement contracts of up to MK500 million in value.

Browns submitted audited accounts for the past three (3) years, credit lines of MK6,000, 000, 000.00 with MyBucks Banking Corporation and proof of past experience of managing similar contracts with World Vision in the sum of MK988, 000, 000.00 in protective equipment, Creck Hardware in the sum of MK588, 625, 000.00 in protective equipment and Central Medical Stores in the sum of MK1, 050, 000, 000.00 in stationery. What was so baffling was the fact that the same world Vision LPO changed from MK68,000,000 to MK988, 000,000

J Browns did submit, this time round, PPDA Certificate of Category
6, that which a supplier may bid for procurement of contracts of up to MK1 billion in value. And yet they were awarded a contract over MK3 billion-how possible?.

While AKI Investments is owned by An Indian who also owns Mugg and Bean Restaurant in Lilongwe.

According to PPDA ACT: Section 44(10) of the Act provides that a procuring entity shall ensure prioritization of all bids submitted to give preference to sixty per cent indigenous Malawians and forty percent others for national competitive bidding.

AKI Investments is not an entity owned by indigenous Malawians and on the other hand.

In Lot 2, AKI Investments bid of MK1, 016, 526, 692.00 was against other well deserved bidders with the recommended % that is required by
Regulation 9(e) of the Public Procurement and Disposal of Public Assets
(Administration of Preferential Treatment) Regulations, 2020.

With such extremely shocking revelations how this contract awarding is nothing but fraudulently but as well giving a bad light to the integrity and dignity of our nation which is now being run on the adherence to rule of law.

The fight against corruption or fraud can no longer be overlooked. The president of Malawi and relevant and governing law enforcement agencies have asked us citizens of good will to be exposing such issues.

Conclusion

In the premises, the PDE in intending to award the contract to J Browns Investments in Lot 1, has breached the Public Procurement and Disposal of Public Assets Act specifically Section 44(5) by accepting new changes to the bid.

Further, in Lot 2 in intending to award the contract to AKI Investments, the PDE has breached section 44(10) as read together with Regulation 9(e) of the Public Procurement and Disposal of Public Assets
(Administration of Preferential Treatment) Regulations, 2020 by not awarding the contract to an entity owned by indigenous Malawian bidders which met the bidding criteria and those entities are owned by indigenous Malawians unlike AKI Investments.

Therefore, the awards both lots violate the rule of law which is against the Constitutional principles as provided under section 12 (1) (f) of the Constitution which provides that all institutions and persons shall observe and uphold this Constitution and the rule of law and
no institution or person shall stand above the law. Further it violates section 44(5) and section 44(10) as read with Regulation 9(e) of the Public Procurement and Disposal of Public Assets (Administration of Preferential Treatment) Regulations, 2020 under the Public Procurement and Disposal of Public Assets Act.

May this contract be put on hold for further investigation and if found to be fraudulently awarded.

Let the MDF re-advertise or select from the other bidders who were left out due to this inconsistencies, misconduct and unpatriotic mindset of some civil servants.

Efforts from both MDF and PPDA proved futile on the warding of the two substandard companies.