23 June 2012

Tanzania: PPRA Slaps Ban On Defiant Companies

THE Public Procurement Regulatory Authority (PPRA) Board of Directors on Friday blacklisted 34 local companies and suspended them from participating in public institutions tender bidding for a period of one year.

Addressing reporters in Dar es Salaam on Friday, the Acting PPRA Board Chairman, Judge Thomas Mihayo said the board made the decision in accordance with Penal Code 103 of the Government Act 97.

He said of the 34 companies, 26 were blacklisted for failing to implement contracts, saying they would be out of such favour for a period of one year. He said the other eight had colluded with the executives of some institutions and received payments for work which was not accomplished.

"The board of directors also discussed several executives whose institutions performed poorly during inspection conducted in the period of 2010/2011," he said. The PPRA Chief Executive Officer, Dr Ramadhan Mlinga on the other hand said the penalized institutions had been instructed to arrange training sessions which would be conducted by PPRA experts, to help them identify their areas of weakness.

"To our surprise, they decided not to comply with the directive. Stern action will be taken against them, otherwise the government will continue losing money in dubious activities," he said. Dr Mlinga said the Board ordered the PPRA management to remind the companies that they were in breach of regulations.

"The aim of the inspection and training conducted by PPRA is to build the companies' capacity for efficient purchases and with accordance to requirements of the law," he said.

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