“As MPs Demand blacklisting of supplier after government paid US$425k for seven vehicles yet to be delivered”

Harare- Parliament’s Public Accounts Committee has ordered the blacklisting of a local supplier that received US$425,866 from the Ministry of Finance for seven Toyota Hilux vehicles in December 2022 but had not delivered them by September 2023.

In a report presented to Parliament, the committee said Tsapo Commercial (Pvt) Ltd was paid in full on December 30, 2022, following an agreement signed 14 days earlier. At the time the Auditor General concluded their audit in September last year, none of the vehicles had been handed over.

The Ministry of Finance, Economic Development and Investment Promotion told the committee that three vehicles remain outstanding. It said it had written to the Procurement Regulation Authority of Zimbabwe seeking the supplier’s debarment and was considering legal action.

“The Ministry will engage the legal department as well as the Attorney General’s office to institute specific performance and liquidated damages of 0.03% of the total contract value,” the ministry said in its response.

It added that if the supplier fails to deliver, it will demand a bank guarantee and that no third-party insurance will be accepted.

The committee issued four binding recommendations, giving the Ministry and the supplier a March 31, 2026 deadline.

It ordered that Tsapo Commercial and its directors be blacklisted from all government contracts until full delivery is made. It also directed the Ministry to recover all funds with interest by the same date if the vehicles remain undelivered.

The committee further recommended that no future prepayments for vehicles or equipment be made without performance bank guarantees, and that government introduce a statutory instrument requiring all state vehicle procurement to be done directly from manufacturers or authorised distributors.

In its observations, the committee said prepayment for undelivered vehicles created “unacceptable financial risk” and pointed to weak procurement controls and a lack of due diligence in supplier selection. It also noted delayed corrective action after non-delivery was identified.

The Ministry acknowledged the lapses and said it will ensure that no prepayments are made in future. It said it continues to lobby for the temporary blacklisting of non-performing suppliers until they meet their obligations.

The value of the undelivered vehicles was not specified, but the total contract value for the seven vehicles was US$425,866.