14 Mar 2022

Parliament has heard that there is no provision in the Public Procurement and Asset Disposal (PPAD) Act that allow for Directorate of Intelligence and Security Services (DISS) to determine award of tenders.

Minister of Transport and Communications, Mr Thulagano Segokgo said this answering a question on behalf of Minister of Finance and Economic Development recently.

Mr Segokgo explained that Section 53 (1) of the PPAD Act however provided for complaints by various stakeholders in respect of any party to a procurement or disposal activity.  

 He added that Section 53 (2) further provided for oversight agencies such as the DISS to undertake any enquiry into an alleged or actual breach in the procurement or disposal process and advised the PPADB accordingly. 

“The DISS has never directed for any company not to be allocated tenders.  

In line with their mandate, they shared information with the Board in relation to the Maun Water Works and the Moshupa Hospital projects about China Jiangsu being a threat to national security, which the Board considered when making its decision.  

The PPAD Act and its Regulations provide safeguards against possible abuse,” he said.

 He also indicated that the finance and economic development ministry was however aware of some public tenders awarded by the PPADB and were reversed upon advise by the DISS.

He said there were two tenders awarded by Public Procurement and Asset Disposal Board (PPADB) over the past four years where there was intervention by the DISS and one of them was the Maun Water Supply and Sanitation, which entailed Design, Supply and Build of Water Distribution Network, Sanitation, Reticulation, Telemetry and SCADA and other Associated Works in Maun.  

“China Jiangsu International was awarded the tender by the PPAD Board on October 11, 2018 at a tender sum of over P1.568 billion.  

The award was later revoked and the tender awarded to the second lowest bidder, Zhengtai Group Botswana on March 21, 2019 at tender amount of over P1.873 billion,” he said.

 He explained that the reason for the revocation was that DISS had indicated that their investigations had shown that China Jiangsu International was involved in activities that were rendered to be posing a threat to national security.  

“Following the DISS advice the tender was awarded to second lowest bidder, Zhengtai Group Botswana on March 21, 2019. 

The project commenced on October 9, 2019 and is still ongoing,” he said. 

 Another project, he said was the proposed Primary Hospital and Associated External Works and Services at Moshupa, which he said was an open tender where the evaluation report showed that China Jiangsu International Botswana ranked first at a bid of over P409 million 

while Zhengtai Group Botswana/Whitacon JV bid at over P418m and ranked second, adding the procuring entity had recommended China Jiangsu for award as the lowest compliant bidder.  

“However, taking into consideration advice rendered to the Procuring Entity and the Board by DISS that China Jiangsu was involved in activities that were considered to be a threat to national security, the procuring entity changed their recommendation to instead award Zhengtai Group Botswana/Whitacon JV. 

 The Board at its meeting of April 18, 2019 approved award of tender to Zhengtai Group Botswana/Whitacon JV for contract duration of thirty calendar months. 

The project commenced on September 20, 2019 and is still ongoing,” he said.

Maun West legislator, Mr Dumelang Saleshando had asked if the finance minister was aware of any public tenders that were duly awarded by the PPADB but reversed through the intervention of the DISS.

Mr Saleshando also asked the minister to the full list of tenders that were affected, provisions in the procurement laws that allow for the DISS to determine award of tenders and if the DISS had ever directed for any company not to be allocated tenders and what safeguards were in place to protect businesses against possible abuse. Ends