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DIS reverses P4 billion worth tenders over bribery claims

Publishing Date : 18 February, 2019

Author : DAVE BAAITSE

The government has this week moved swiftly to blacklist with immediate effect China Jiangsu International Botswana (Pty) Ltd, a subsidiary of China Jiangsu International over alleged corrupt practices.


However, yesterday (Friday), China Jiangsu approached High Court on urgency asking the court to compel Public Procurement and Assets Disposal Board (PPADB) to review its decision to cancel the two tenders awarded to the Chinese company. The matter is expected to be heard on Monday.Reports indicate that senior government officials in President Mokgweetsi Masisi’s administration are considering giving the work, which is critical, to another Chinese contractor (name known to this publication), subsequently recalling the tenders of China Jiangsu International Botswana.


On 7th February 2019 PPADB wrote to Managing Director China Jiangsu International Botswana with reference to the design and building of a water distribution network, sanitation reticulation, telemetry and scada and associated works in Maun PR 10/1/3/16II. The letter suggested that the board at its meeting held on the 7th February 2019 resolved to withdraw award of the above tender from China Jiangsu International Botswana which was made on the 11th October 2018.


“The reasons for withdrawal of award cannot be disclosed as they are classified,” read the letter. The letter was signed by Acting PPADB Executive Chairperson Elijah Motshedi. In another letter, Water Utilities Corporation (WUC) wrote to the Managing Director of Jiangsu International Botswana (Pty) Ltd with reference to the termination of major villages’ water supply distribution network rehabilitation for Palapye- Tender no WUC 025 (2014).


“We refer to the above contract awarded to the China Jiangsu International Botswana (Pty) Ltd as per the Notification of Award sent to the Company under cover of the Corporation’s letter dated 4th March 2015,” stated the letter. WUC invoked sub- clause 15.5 of the contract which empowers the corporation to terminate the contract it has with Jiangsu International Botswana. Jiangsu was instructed to “immediately cease work on the Contract and commence removing the Contractor’s equipment in terms of sub- clause 16.3 of the General Conditions of Contract.”


“You will be entitled to payment under provisions of sub- clause 19. 6 (a) to (e), and in this regard you are to keep proper records of all costs incurred as contemplated by sub- clause 19. 6 (a) to (e),” said the termination letter. “Please note that this decision is final, and no discussions or correspondence will be entered into regarding the decision to terminate nor the reasons for the termination.”   The tender which was awarded on the 25th September 2018 with a project duration of 42 months from the commencement date was valued at P 875, 923, 178. 85.


They were required to provide a performance bond of 10 percent of the contract amount which is (10 percent of P 875, 923, 178.85) P 87, 592, 317. 88 entered into with an approved Botswana Registered banking institution within 28 days calculated from the date of the Letter of Acceptance. The tender was awarded to China Jiangsu International (Pty) Ltd JV together with Unik Construction Engineering.  


On Wednesday 13th February 2019, the Ministry of Mineral Resources, Green Technology and Energy Security issued a communique where they advised all quasi-government institutions under the ministry not to engage China Jiangsu International in any of their organisations’ activities or projects as they have been found to have been involved in massive corrupt activities.


 The letter which was signed by Permanent Secretary Cornelius Dekop was addressed to; Debswana Diamond Company, Okavango Diamond Company, Diamond Trading Company, Botswana Oil Limited, Botswana Power Corporation, Botswana Geo- Science Institute, Botswana Regulatory Authority, Minerals Development Company Botswana, and Morupule Coal Mine.   Information gathered by WeekendPost this week suggests several senior government officials (names known to this publication) benefited close to P 25 million each in the ongoing saga.

China Jiangsu has lost P4 billion worth of four big tenders. This publication has been informed that Permanent Secretary to the President, Carter Morupisi has ordered the Ministry of Infrastructure and Housing Developments to only deal with a few approved companies that are ethical. The PSP as head of civil service is championing the ‘clean up’.


It is understood that China Jiangsu International Botswana through their lawyers Monthe Marumo and Company have written to the Attorney General to notify them of the matter where due process was ignored and called for PPADB to furnish them with a written undertaking or not to reverse the award of the tender in question. China Jiangsu International Botswana has resolved not to seek legal redress because they are a Chinese State company and they do not want to be seen as if they are fighting the Botswana government.


It is reported that the intelligence organ, was involved in the operation which exposed China Jiangsu. Contacted for comment Directorate of Intelligence and Security (DIS), Director General, Brigadier Peter Magosi said they are a lot of investigations concerning the matter of China Jiangsu International on corruption allegations and such undertaking is still ongoing. Magosi said he could not disclose the names of those implicated as that will jeopardize the investigations but promised that he will do so when the time is right.


The Director General could not confirm whether the Chinese State company poses any issues of national security or not saying they are still investigating the matter. Meanwhile Morupisi told this publication that he does not know anything about Red East Construction (Pty) Ltd which is alleged to have been given the job.


“As far as I know, the China Jiangsu International Botswana matter has not reached my office and I don’t know anything about it. The issue concerning the Ministry of Minerals can be addressed to Permanent Secretary Cornelius Dekop, he authored that letter,” said Morupisi.
China Jiangsu International has deep roots in Botswana and has won a lucrative multi- million pula contracts for a mega construction project, easily outbidding local and foreign competitors.  


China Jiangsu International was to be engaged in a THREE GRADE SEPARATED INTERSECTIONS (INTERCHANGES) project, which has been awarded to Unik Construction Engineering (Pty) Ltd and Zhong Gan Engineering & Construction (Pty) Ltd.  The project objective is to contribute towards improved traffic flow in Greater Gaborone through construction of the 3 interchanges along KT Motsete Drive (‘Western Bypass’) i.e. at ‘Kgale Circle’, ‘Rainbow Circle’ and ‘BTV Circle’.


Conceptual design: was carried out by ADK-NAMA (Pty) Ltd consultancy firm since May 2016 and are now the Monitoring/Supervising Consultant. Procurement Process was on the basis of the OFID “Procurement Guidelines” where a “No Objection” had to be granted for critical decisions such as Technical Bids Evaluation, Financial Bids Evaluation, Bids clarifications, Tender validity extension requests etc. the tender process commenced on 21 April 2017 and up to 1st September 2017.


 The Technical Evaluation Report was completed in December 2017 while Financial Evaluation Report was completed in September 2018. Tender Award for Design, Build and Transfer was awarded to Zhong Gan Engineering & Construction (Pty) Ltd, China Jiangsu International Botswana (Pty) Ltd and Unik Construction Engineering (Pty) Ltd Joint Venture (ZGEC/CJI/UCE JV) on 25 October 2018 at a Contract Price of BWP 447,239,902.03, inclusive of 12% VAT. 

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