Millions paid, nothing delivered: The State’s procurement crisis

Image Source: Vecteezy

By Staff Writer, Parliamentary Watch

Government procurement under the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has come under renewed scrutiny after Parliament’s Public Accounts Committee (PAC) cited multiple cases where suppliers were paid, yet goods and vehicles were not delivered months later, exposing weak contract management and heightened risk of financial loss.

In its report on the Auditor-General’s findings for the years ended 31 December 2022 and 2023, the PAC details how payments were made for office equipment and motor vehicles that had still not been supplied by the time audits were concluded in May 2024. The Committee warned that poor contracting practices, especially unclear delivery terms, weak safeguards, and undocumented contract variations, left the ministry vulnerable in a volatile economic environment.

The PAC noted that the ministry’s Policy and Administration Department bought a batch of office assets between 30 November and 28 December 2023, including seven desks, seven chairs, seven laptops, a cellphone, and a voice recorder, totalling hundreds of millions of Zimbabwe dollars, yet the items had not been delivered as at 10 May 2024 when the audit was concluded.Officials said that hyperinflationary pressures were distorting the Committee’s procurement, with suppliers demanding upfront payments before delivery.

In some cases, suppliers reportedly failed to obtain foreign currency allocations needed to import certain items.The Committee, however, was not persuaded that the macroeconomic context excused weak contracting. It concluded that “contract management was poor,” noting the absence of contractual measures designed to protect the ministry from non-delivery and value erosion.

According to the PAC, the Department of the Surveyor-General paid ZWL$116 974 107 to Mike Harris (P/L) for three vehicles, but none had been delivered by May 2024. The Veterinary Department similarly paid ZWL$203 844 148 for four vehicles in May 2023, and by 15 May 2024, no vehicles had been received.In a further red flag, the Auditor-General “could not verify the contract terms with Mike Harris,” because the actual contract was not provided for audit. The PAC treated this as a serious governance gap: if the contract cannot be produced, oversight bodies cannot confirm delivery timelines, penalties, payment protections, or dispute-resolution provisions.

Ministry officials attributed the delays to suppliers’ failure to secure foreign currency through the Reserve Bank of Zimbabwe’s auction system, funds they said were necessary to import vehicles. The supplier reportedly later indicated that, due to exchange rate shifts and currency changes, meeting the original contract was no longer economically viable, and negotiations were ongoing with the ministry seeking legal advice.

The PAC also cited a procurement irregularity involving the Veterinary Field Services, which contracted Paza Buster to purchase an Isuzu D-Max 2.5 double cab but received two single cabs instead. The audit did not receive documentation explaining or authorising this variation.The Committee flagged this as another sign of weak control over procurement changes, an area that often becomes a gateway to inflated costs, substituted specifications, and disputes that the state struggles to enforce.

The PAC warned that poor contract management breached procurement law and could result in losses for the ministry. It urged stronger compliance with the Public Procurement and Disposal of Public Assets Act [Chapter 22:23], including: clear contract terms that spell out delivery timelines, payment terms, and conditions for any modifications; enforcement of contract management procedures under Section 79 (as referenced by the Committee in relation to the undelivered assets); and stronger adherence to provisions the Committee cited on vehicle contracting, including Section 78(2)(h) and Section 81(2), to prevent “unauthorised contract variations.

It also recommended that the ministry should require proof of financial capacity and forex accessibility from suppliers before awarding contracts, an attempt to reduce dependence on uncertain foreign currency allocations that can derail delivery.

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