Economy

Procurement authority suspends Ngotash for one year over alleged contract underperformance

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The Zambia Public Procurement Authority (ZPPA) has suspended Ngotash Enterprises Limited from participating in public procurement for one year over underperformance in fulfilling contractual obligations.

ZPPA Principal Officer for Public Relations, Iñutu Mushambatwa, confirmed the suspension in a statement issued in Lusaka on Thursday.

She said the action followed an investigation into a contract for the supply of six-inch blocks for the construction of 20 low-cost houses in Sinda District by the National Housing Authority (NHA).

“ZPPA established during an investigation that the National Housing Authority signed a Local Purchase Order on October 14, 2024, for the supply of 12,000 six-inch blocks to be delivered within 14 days,” Mushambatwa said.

 

Read More: ZPPA bars Multiplex contractors from public procurement for one year

She explained that Ngotash Enterprises Limited received an advance payment of K120,000 but failed to deliver the full quantity within the stipulated timeframe.

“By October 27, 2024, Ngotash Enterprises Limited had only delivered 7,937 blocks,” she noted.

Mushambatwa said such underperformance contravened Section 96(g) of the Public Procurement Act No. 8 of 2020, as amended by the Public Procurement (Amendment) Act No. 17 of 2023.

She said ZPPA subsequently suspended Ngotash Enterprises Limited from participating in public procurement effective October 22, 2025.

However, Mushambatwa clarified that the suspension does not prevent the company from executing contracts signed before that date.

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