Home News Government Suspends Payment Of Overvalued Tenders

Government Suspends Payment Of Overvalued Tenders

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The government has suspended payments to on contracts that are clearly based on speculative forward exchange rates, Great Dyke News 24 reports.

In a statement, the Minister of Finance and Economic Development Professor Mthuli Ncube said that the government is committed to maintaining macro-economic stability.

 “The Government of Zimbabwe remains committed to maintaining macro-economic stability and the elimination of harmful and destabilizing arbitrage conditions that have pervaded the economy at the expense of the generality of citizens.

“The suspension of all payments to on contracts that are clearly based on speculative forward exchange rates has seen a rapid correction in the market with the official exchange rates on the auction and the WBWS exchange rates in the banks converging between ZWL605/ 1 USD to ZWL660 /1USD.

“This correction has been supported by a significant and observed retreat of the unofficial exchange rates to levels below ZWL700/1 USD.

 “Whilst government supply contracts have been undergoing a validation exercise, we have continued to pay up on those that meet the Value for Money criteria.

“In the last six weeks, government has paid a total of ZWL184 billion dollars.

“These payments have been made to various players in the market so it is not a fact that Government is not paying for goods and services.

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“As we move ahead to implement the Value for Money process, we are committed to honouring all our obligations provided that they are priced correctly in the public interest and such payments will not adversely impact the exchange rate and cause inflation, “ he said.

Professor Ncube added that the government expects the prices of goods and services to be based on economic fundamentals in order to reduce inflation and foster confidence on the economy.

“Government is committed to the restoration of price and macro stability and the elimination of forward speculative pricing is a necessary step towards removing adverse inflation expectations, which have been feeding lack of confidence.

“Following the implementation of the Value for Money process we expect all pricing in the market to be based on economic fundamentals.

“Speculative behavior will no longer be accepted nor tolerated. We therefore encourage all stakeholders in the economy to benchmark prices fairly for all consumers as this bolsters confidence in the economy.

“The full ambit of government policy tools is being used to restore macro stability. This is necessary if the objectives of the Vision 2030 are to be achieved,” he added.

The government recently cancelled an inflated tender from two companies for the supply of laptops and desktop computers to parliament. The two companies that wanted to supply laptops and desktop computers to parliament are Blinart Investments P/L, which wanted to supply 79 desktop computers and Mid-End Computers and Hardware which wanted to supply 173 laptops. The laptops were valued at US$9 264,48 each  while desktop computers were valued at US$3 076,61 each.

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