The National Treasury Cabinet Secretary John Mbadi on Friday barred three public companies from conducting business with the government.
In a gazette notice dated November 15, Mbadi stated that the three companies had been banned for defying different guidelines as outlined by the Public Procurement Regulatory Authority Act.
The first firm has been barred from conducting any business with the government for a period of three years starting on July 11, 2024, making this the fourth month since the ban took effect.
Part of the gazette notice read, “Unnaitech Agencies Limited has been debarred by the Public Procurement Regulatory Authority from participating in public procurement and asset disposal proceedings, on the grounds specified in section 41 (1) (c) of the Public Procurement and Asset Disposal Act, for a period of three (3) years, with effect from the 11th July, 2024."
According to the reasons stated in the act, this means that the company has previously breached a contract with a public entity due to poor performance.
In another gazette notice, also dated November 15, Mbadi simultaneously barred two more companies; Sanali Limited and Efranjivercity Limited for three years starting from August 20, 2024.
The two met this fate for defying section 41 (1) (d) of the Public Procurement and Asset Disposal Act which dictates laws against giving false information about the firms’ qualifications.
“The Board shall debar a person from participating in procurement or asset disposal proceedings on the ground that the person has, in procurement or asset disposal proceedings, given false information about his or her qualifications,” the Act reads.
The Public Procurement and Asset Disposal Act section 41 dictates instances in which companies can be debarred from public procurement including the above-mentioned poor performance and lying about qualifications as well as others like; breaching a code of ethics or defaulting on taxes.
Being found guilty of corrupt or fraudulent practices or of a serious violation of fair employment laws and practices are also other reasons that can lead to a temporary or permanent ban from acquiring public tenders.
The Authority may also debar a person from participating in procurement or asset disposal proceedings on the recommendation of a law enforcement organ with an investigative mandate.
A debarment under this section is often for a specified period of not less than three years.
