New Twist in P1.2bn SPEDU Tender

  • DISS, PPADB blacklist Marcian Concepts 
  • Its shareholders, directors, senior officers of also blacklisted 
  • Marcian Concepts was awarded P250m SPEDU tender
  • Company was fraudulently registred

LETLHOGILE MPUANG

A local construction company, Marcian Concepts (Pty) Ltd, that was awarded a quarter of the P1.2 billion of Selebi-Phikwe Economic Diversification Unit’s (SPEDU) construction projects aimed at revitalising the town and surrounding areas has been permanently barred from participating in any government projects, The Botswana Gazette has established.
On Tuesday this week, the Public Procurement and Assets Disposal Board (PPADB) announced that a board decision to permanently delist and remove the company from the government’s contractor registration system had been taken.
Marcian Concepts was awarded a tender valued at P230,695,655.92 to build and construct Phase 1 of the P1.2 billion SPEDU Industrial and Urban Agriculture Land Service project, a 3,500-job creation initiative that President Mokgweetsi Masisi mentioned in his November 2020 State of the Nation Address (SONA).
“Marcian Concepts (Pty) Ltd, having been found guilty by the Board on the 4th of October 2021 of all the charges against it regarding fraudulent, illegitimate and improper registration, and it having been invited to show cause why it should not be de-listed and removed from the contractor registration system with immediate effect, the Board on the 6th October 2021, having considered all relevant factors, including its statutory mandate to ensure the integrity and public confidence in the procurement process, resolved to permanently de-list and/or remove Marcian Concepts from the contractor registration system with immediate effect for the reason that their registration is void ab initio,” reads a statement from PPADB.
The company also saw its Grade E rating revoked. “The contractor shall be removed from the Integrated Procurement Management System (IPMS) for all the codes and sub-codes,” the statement continues.
“In terms of Section 125 of the PPAD Act, the company is debarred from registering a newly incorporated entity for the period of the penalty imposed. In terms of Section 126, shareholders, directors and senior officers of the company are also debarred from joining another contractor in key operational positions, and should they so join another contractor, the said contractor shall be debarred from bidding on new tenders.”
BACKGROUND
In June 2020, SPEDU awarded Marcian Concepts a tender to design and build infrastructure, roads, stormwater drains, water reticulation, sewer pump stations, power reticulation, street lighting and telecommunications. The project was valued at P230,695,655.92
Its period of performance was estimated to be 15 months with 12 months of defects notification. However, towards the end of 2020, the project was put on hold following advice from the Directorate on Intelligence and Security Service (DISS) that the tender was a subject of corruption.
It was suspected that some top civil servants, SPEDU, PPADB, private lawyers and big wigs in the construction industry were involved in the award of the tender.
The company subsequently slapped the government with a P32 million bill for issues relating to the contractual impasse. The matter is currently before the High Court.
According to information from the Registrar of Companies, Marcian Concept is solely owned by one Emmanuel Moyo. It was incorporated in 30 October 2013 and later re-registered on 8 July 2019.