Staff Reporter

Government has said it will implement punitive measures against Government officials that will be found complicit to overpricing and procurement malpractices.

Addressing the media during a press conference on payments to the market, following the implementation of the value for money process on Government procurement contracts, Minister of Finance and Economic Development Professor Mthuli Ncube said Government officials who were found collaborating with the overpricing and procurement malpractices will be charged whilst suppliers will be blacklisted and scraped from the supply lists.

“The value for money process will now result in punitive measures being taken against any Government officials found to be complicit to overpricing and procurement malpractices while suppliers will be blacklisted and excluded from future supply contracts.  All existing contracts are now being subjected to a value for money audit before payments are made,” said Prof Ncube.

According to Prof Ncube, these measures were effected after Government had noticed with concern a behavioural tendency of forward pricing models and benchmarking prices to front loaded parallel market exchange to Ministries, Departments and Agencies (MDAs) as well as Parastatals and local authorities.

“Government has noted with concern pricing of goods and services offered by suppliers to Ministries, Departments and Agencies as well as Parastatals and Local Authorities. The pricing framework adopted by suppliers has been characterized by a behavioural tendency for forward pricing models and benchmarking prices to front loaded parallel market exchange rates,” he said.

In light of the prevailing market challenges, Prof Ncube advised that Government had since enforced measures that will enhance economic stability by form of suspension of all inflated payments and ordering an audit exercise to revalidate all running contracts including renegotiation of prices with various suppliers.

“In light of the above, Government started enforcing measures to enhance economic stability by suspending all inflated payments and ordering an audit exercise to revalidate all running contracts and renegotiate prices with various suppliers,” said Prof Ncube.

Government has also expressed its commitment to the restoration of price and macro stability and the elimination of forward speculative pricing which is a necessary step towards removing adverse inflation expectations which have been feeding lack of confidence.

The recent measures are an addition to measures which are continuously being ushered in by the Second Republic in its drive to buoy Zimbabwe’s economic sphere. So far measures implemented by Government have seen the country’s projected GDP reaching US$23.5 billion by year end.