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20 July 2012 | Kamalpreet Badasha
The government of Tanzania has banned 393 firms from taking part in tenders for public sector contracts.
The Public Procurement Regulatory Authority (PPRA) of Tanzania has published three lists of blacklisted firms and individuals blocked from bidding for deals. The three lists are from the World Bank, which names 345 firms, the PPRA itself lists 35 firms and the Public Procurement and Disposal of Public Assets Authority (PPDA) in neighbouring Uganda has banned 13 firms. The lists provide details including the reason for the ban and how long it will last, which ranges from one year to permanent exclusion.
The businesses have been banned under section 57 of the Public Procurement Act. Reasons for bans included companies who were paid for work that was then not completed.
Ramadhan Mlinga, CEO of the PPRA said in a statement: “There is an increasing trend for firms to give prices that are unrealistic and when they realise that that they cannot execute the contracts, they abandon them, forcing the procuring entities to terminate the contracts.”
To prevent fraudulent activities the PPRA has increased the transparency of tendering by implementing an online tender portal and a mobile tender alert service. Mlinga added: “We will not stop there. Under the new public procurement law, we have designed a system that will increase transparency by requiring procuring entities to submit details of contract awards and implementation.”