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The Zambia Public Procurement Authority (ZPPA) has suspended Hossain Enterprises Limited from participating in public procurement for a period of two years.
ZPPA Principal Officer for Public Relations, Inutu Mushambatwa, said the company had been suspend for failure to execute contractual obligations.
Mushambatwa said this in a statement issued in Lusaka on Thursday.
She stated that the suspension followed a recommendation by Mushindamo Town Council for failure by the contractor to execute contractual obligations in the tender for the construction of a bridge and embarkment on the Mulalashi Stream.
“The tender includes the construction of culverts and embankments on Kyambulumina and Kafwembe Streams,” Mushambatwa said.
She stated that non-performance or under performance of contractual obligations was contrary to section 96(g) of the Public Procurement Act No.8 of 2020.
Mushambatwa explained that this was as amended by the Public Procurement (Amendment) Act No.17 of 2023.
“The Act provides that a bidder or supplier shall be suspended from participating in procurement where the bidder or supplier has non-performed or under performance of contractual obligation except that the non-performance or under performance is not due to any force majeure,” she said.
Mushambatwa stated that the company was suspended from participating in public procurement for a period of two years with effect from March 1, 2024.
She said the suspension included any “successor in interest” including any entity which employs, or was associated with any partners, directors or other officers considered as successors in interest.
“The Authority wishes to state that the suspension does not in any way limit Hossain Enterprises Limited from performing outstanding contracts that were entered into before March1, 2024,” Mushambatwa added.
She advised that all procuring entities should enforce the suspension by ensuring that they do not award contracts, sell or issue solicitation documents or in any other way invite bids from Hossain Enterprises Limited, with effect from March, 1, 2024.
Mushambatwa further advised all procuring entities not to enter into any other dealings with or communicate with the suppliers except in respect of existing contracts placed prior to this suspension.
“The Authority has issued details of the suspension through Circular No. 5 of 2024,” she said.
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