Zimbabwe: Treasury Delists Defaulting Suppliers, Bans Pre-Payment of Services Due to Non-Delivery

Treasury says it has delisted suppliers who have failed to deliver goods and services after receiving payments.

Finance Ministry Permanent Secretary George Guvamatanga said no advance payments will be made to suppliers who are contracted by the government.

The ban comes after the Auditor General's report revealed that several goods and services paid for through Ministries, departments and agencies (MDAs) by the Treasury were not delivered.

"Those who have not delivered goods and services have been banned from transacting with government.

"We have actually banned the advance payment from most of the goods and services that the ministries and departments and agencies do secure from various suppliers.

"As we speak now, what has been delivered, who has been banned, and what remains outstanding, it was a very long list," Guvamatanga told the Public Accounts Parliamentary Committee (PAC) recently.

He added, "We were shocked by what we discovered. But I think following that intervention, there is now a very marked improvement."

According to Guvamatanga, some MDA officers were involved in the scandals involving the loss of millions of dollars by the government.

"And we did emphasise that there will be an action taken against the accounting officers in the event that they continue with this practice following the intervention of closure," added Guvamatanga.

Committee chairperson Charlton Hwende requested to have the list of those companies that defaulted on delivery.

"We will provide the list. It is available," said Guvamatanga.

Regarding defaulters, Guvamatanga said, "It's the same companies, they change directors, they go and change directors, they get another contract, you know, and it's the same players.

"So when we present it for the identity of the companies, we then see the same players all over. We are now calling them, bringing them to where you must bring your bank statements. "

"Those same people become the directors of the new company. They are then given another tender, which they flout. Three, two years later, they change the name of the company, but they remain with the same directors," Guvamatanga said.

Read the original article on New Zimbabwe.