By Correspondent
Harare City Council allegedly lost over US$200 000 in a 2017 deal for bitumen after the supplier failed to deliver despite receiving full payment.
Details of the shady deal are contained in a file sent to the Zimbabwe Anti-Corruption Commission (ZACC) by former Acting Finance Director Livingston Churu.
Details
On 13 December 2017 Paulos Construction wrote to City of Harare offering to sell bitumen tar 70/100 at $1.45 per kg.
The company alleged that it had 850 drums of that bitumen tar in stock.
The next day a report to the Procurement Committee by the Acting Chamber Secretary approved a direct purchase.
On 15 December, the Supply Chain Manager approved a site visit to verify the existence of the product.
On the same date there was an endorsement from a Mr Sauramba about the site visit.
However, the site visit was of no use as Paulos Construction had already been awarded the contract.
Paulos Construction was paid US$246,500.00 in advance on 21 December.
According to the documents the payment was designated as ‘cash on delivery’.
However, no delivery was made after the payment.
In a breach of the law the payment was also made to the CABS personal account of Paulos Construction Director, T. Tungwarara.
It carried a tax component of $32,152.17.
No tax clearance certificate for the director was provided to Council.
However, the requisite 10% withholding tax was not made and retained by Council for onward transmission to ZIMRA.
Scammed!
Only 100 drums of bitumen tar 70/100 had been delivered by 3 January 2018.
“The supplier tried to deliver 160 drums of stable 60 in place of bitumen tar 70/100 although Council never placed any order for that product”.
Corruption
“The points to note are that the award of the contract was done on 14 December same day as the report to the committee.
Secondly Churu alleges that the award was done before verification of the availability of the product was done.
“An advance payment was then made disguised as cash on delivery, yet no deliveries were made soon after that payment.
The advance payment was made in contravention of the terms in the memorandum of agreement.
“There was no bank guarantee from the supplier to safeguard Council in the event that the supplier fails to deliver.
Churu also alleges that no safeguards were put in place to make sure the supplier delivered the product.
The Director of Paulos Construction is Paul Tungwarara lately in the media spotlight over a US$15 million precast wall for State House.
