By Cathy Maulidi
Ombudsman Grace Malera has faulted the Central Medical Stores Trust (CMST) management in the way it handled the auction of 29 obsolete motor vehicles and two motorcycles.
According to a report on the alleged unprocedural auction of the vehicles at the CMST that Ombudsman made public yesterday, the management failed to follow proper procedures in the auctioning of the said vehicles and bypassed the Board when coming up with a decision to auction the vehicles.
Ombudsman’s investigations into the matter, came after a concerned citizen filed a complaint to the office of ombudsman alleging that CMST was auctioning the vehicles without following due procedures.
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Presenting the 70-paged report in Lilongwe on Thursday, Malera said CMST management proceeded irregularly, unprocedurally and unlawfully in the manner they handled the disposal process.
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“The practice obtaining in public institutions is that disposal of high value items such as motor vehicles is conventionally through tendering by sealed bids as this is the most suitable method for disposal that guarantees attainment of maximum value and also avoids collusion between bidders and auctioneers,” said Malera when presenting the report.
However, the investigation has found that CMST failed to follow the required principles for procurement and disposal of public assets as well as the practice by moving from the required sealed tendering to open tendering method when it contracted connect auctioneers to handle the auction.
“At best, the reasons proffered by CMST for the change in the methods, hinging on adoption of new procurement plans in subsequent financial years exposes inconsistencies and irregularities, and at worst, the reasons are absurd and demonstrate glaring arbitrariness in the manner that the decision to change the method of disposal was arrived at,” reads the report.
The report also pointed out another omission by the management in respect of involvement of the Board of Trustees of CMST in the consideration and approval of the decisions in relation to the disposal of the assets in question.
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“The overall power over issues such as procurement of assets of the CMST and disposal thereof lies with the Board of Trustees, in particular where high value assets are concerned. The evidence points to the fact that at no point in time was the CMST Board presented with Management’s recommendations in relation to the disposal of the motor vehicles for consideration and approval,” the report further reads.
Another critical omission, as stated in the report, pertains to the failure by the CMST to officially report to relevant authorities a serious incident of fraud by one of the bidders, Tres Auctioneers and Estate Agents.
“According to the evidence this particular bidder had used a forged MRA Certificate and PPDA Certificate. Whereas, from the evidence it appears CMST informed the PPDA of the issue of the forged certificates. This was not a formal reporting by the CMST to the PPDA as required under section 55(2) of the PPDA Act. Instead,” read the report.
Malera has directed that CMST should formally lodge a complaint under section 55(2) of the PPDA Act to the PPDA on the forgery of the MRA and PPDA Certificates by Tres Auctioneers and Estate Agents for PPDA’s appropriate action.
CMST has also been told to report the matter to the Police for appropriate action.
The CMST Management has also been directed to take appropriate remedial steps to rectify the wrongful acts and omissions that characterized the assets disposal processes where the 29 motor vehicles and 2 motor cycles are concerned.
The remedial steps include withdrawing a contract with Connect Auctioneers Company, which Ombudsman feel proper procedures were not followed.
Reacting to the findings, CMST public relations officer Herbert Chandilanga said the institution will follow the directives in its bid to improve its operations.
“We will be glad to work by those directives,” he said.
