By Pemphero Malimba:
The Public Procurement and Disposal of Assets Authority (PPDA) has barred five companies from participating in procurement or disposal processes for allegedly contravening provisions of the PPDA Act of 2017.
In a statement, PPDA indicates that the suspension is effective February 24, 2025.
It identifies the five companies as Yathu investments, Matiti Enterprises, Mothiwa Enterprises, Pinnacle General Suppliers and Penguin Security Services.
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The authority alleges that they violated section 56 (2)(b) of the PPDA Act of 2017 by submitting fake tax clearance during supplier registration.
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The companies have since been given suspension durations of between three months and four years (48 months).
“The listed companies and their directors are not eligible to participate in public procurement during the period of their debarment.
“However, the debarment does not apply retrospectively. Therefore, all MDAs [ministries, departments and agencies] should take note of this decision and act accordingly. All the affected bidders/suppliers have been notified of the authority’s determination,” the statement reads.
The authority has further indicated that the suspension is effective upon the issuance of a written decision and remains in force until being overturned on appeal to the High Court or until the suspension period expires.
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Meanwhile, Centre for Social Accountability and Transparency Executive Director Willy Kambwandira said there was a need to find lasting solutions to malpractices.
“It is unfortunate that PPDA appears to be struggling with symptoms instead of dealing with the root causes of the problem. We all know that this is not the first time the PPDA has made such decisions and yet the challenges persist.
“We must deal with deficiencies in procurement processes, including migrating to open contracting—where all the information is placed on the public portal,” Kambwandira said.
PPDA is mandated by the PPD Act of 2017 to monitor, regulate and oversee public procurement in Malawi.
