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Ambulance scandal deepens

SUPPLIER OF CDF AMBULANCES IDENTIFIED AS A FOREIGN NATIONAL

….Sujit Shanani identified as the beneficial owner of ACE Pharmaceuticals

To qualify to obtain deals to supply medicines and medical supplies at the Zambia Medicines and Medical Supplies Agency (ZMMSA), Surjit shanani, an Indian national resident in Zambia, registered a local firm called Ace Pharmaceuticals using his workers.

Since then, as records show, Shanani has obtained all his contracts with the government at ZMMSA under limited bidding (single sourcing).

A check at PACRA revealed that Surij has registered as shareholders, his workers Nakasamba Banda, and Moses Chanda, but he is the signatory at the Bank.

The registered business premises for Ace Pharmaceuticals is stated as a pharmacy located in the sprawling Garden Compound in Lusaka.

Surjit’s biggest contract is the one he won for the supply of CDF Ambulances to the Ministry of Local government for on-ward delivery to the 156 constituencies.

The tender is under the popularly known method of single-sourcing, (limited or direct bidding).

The Public Accounts Committee is probing the $13 million procurement inquiring why the tender was not awarded to a manufacturer or registered local agent, or franchise holder of the 4×4 vehicles to be converted as ambulances for constituencies.

The Public Accounts Committee (PAC) heard how the Ministry of Local Government and Rural Development, the Ministry of Health, and ZAMMSA procured 156 ambulance worth K336,173,760 ($13 million) but only eleven (11) units had been delivered.

PAC is also inquiring on why the tender went through selective limited bidding instead of the recommended national open bidding for large-scale public procurements.

PAC has also questioned what Government had done as the contract stipulated a delivery period of 20 weeks which expired in June 2024.

Further, it has become clear that the Zambia Public Procurement Authority (ZPPA) Circular No. 1 of 2023, which reserves CDF-funded procurements for Zambian citizens, was breached with impunity.

Surjit refused to comment when presented with the facts referring all matters to Acting Director General of ZMMSA or the Permanent Secretary at Ministry of Local Government and Rural Development, Nicholas Phiri.
And details of Aqueous Investments, which won to supply the other batch, showed that shereholders were Panetta Masala and Sandile Piwase Stephanie.

The registration arrangements appear smilar to Ace Pharmaceuticals but at press time, could not be vitrified.

At the press conference held on Thursday, 28th November 2024, Ministry of Information and Media, Thabo Kawana and Ministry of Local Government and Rural Development, Nicholas Phiri defended the illegal procurement stating that government’s cause was to empower local suppliers.

Phiri claimed that Government’s focus was on empowering local businesses in alignment with the Zambia Public Procurement Authority (ZPPA) Circular No. 1 of 2023, which reserves CDF-funded procurements for Zambian citizens, particularly those in underserved areas.

Phiri has insisted that the government gave the tender to local suppliers in order to empower them.

He said the delay of 20 weeks in the supply of the ambulances was excusable.

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