Scandal! PP Tyres and Spares, Standard Solutions banned by PPDA for submitting fake tax documents

In a significant crackdown on procurement fraud, the Public Procurement and Disposal of Assets Authority (PPDA) has banned two companies, PP Tyres and Spares and Standard Solutions, from participating in public procurement processes due to the submission of fraudulent tax clearance documents.

Effective October 20, 2024, PP Tyres has been disbarred for one year, while Standard Solutions faces a three-year ban.

The PPDA’s decision is based on violations of Section 56 (2)(b) of the Public Procurement and Disposal of Public Assets Act, 2017, which prohibits the submission of fake tax clearances during supplier registration.

The authority confirmed that this ruling applies only to future procurement activities, and does not retroactively affect any prior contracts or engagements. “Ministries, departments, and agencies have been duly notified of this decision, along with the list of affected companies,” the PPDA stated in a press release.

According to the PPDA, their powers under Section 6 (1)(g) and Section 56 of the Act allow them to suspend, debar, or exclude any bidder or supplier found in violation of procurement regulations. While both companies have the right to appeal the decision, it will remain in effect unless overturned by the High Court or until the end of the specified debarment period.

Attempts to reach representatives from the disbarred companies for comment were unsuccessful, as calls went unanswered.

This latest ruling brings the total number of banned entities to 10 in just two months, following the PPDA’s sanctions against eight firms in September.

Procurement expert Anord Chirwa expressed concern over the high number of disbarments, indicating a troubling trend in compliance within the industry. “This shows that the level of compliance is very low. This is not about the entities being ignorant,” he remarked, emphasizing the prevalence of document forgery in procurement processes.

Chirwa pointed out that it is common for companies to forge various documents, including bank bonds, which can be easily identified through proper verification. “It is a good move by the PPDA to disbar companies for such violations because such companies pose significant risks to the procurement system,” he stated in a phone interview.

As the PPDA continues to enforce strict measures against fraudulent practices, the call for greater transparency and integrity in public procurement remains crucial for safeguarding national resources.

 

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