The Botswana Power Corporation (BPC) has been caught off guard awarding a multi-million Pula tender to one of the bidders without following proper procedures, documents seen by Sunday Standard suggest.
Documents show how the cash strapped power utility did not flout its tender rules but also the Public Procurement and Asset Disposal (PPADB, as it was then) regulations. There are even claims the Corporation has gone ahead and awarded the tender behind the back of other bidders after having informed them it had been canceled.
The bidders believe that the BPC is still mapping the way forward; whether to refloat or not and the matter is still yet to be resolved.
Chief executive officer David Kgoboko tried to withdraw a letter written by supply chain manager, Thatayaone Mothibi addressed to “all prospective bidders” canceling the tender after one of the bidders filed a complaint with the corporation. The contention is that the awarding of the tender was irregular and raised eyebrows among bidders.
The tender for the supply and delivery of heavy fuel oil (HFO) to Morupule A Power Station is worth P241 million.
In the letter dated 9th August 2022, Mothibi informed bidders that the “Botswana Power Corporation has resolved to cancel Tender 5265/21 for the supply and delivery of heavy fuel oil (HFO) to Morupule A power Station.”
Explaining the decision to cancel the tender, Mothibi said: “This is in line with Clause 10.1 of the Conditions of Tendering applied to the Request for Proposal (RFP) of the above referenced tender.” Mothibi added that; “Considering the above the Corporation is compelled to cancel the tender…” A month after Mothibi’s letter, Kgoboko wrote a letter withdrawing Mothibi’s letter canceling the award of the tender to one of the bidders.
“Following the withdrawal of the decision to cancel the aforementioned tender, all Bidders are hereby advised that BPC is considering canceling tender No 5265/21,” said Kgoboko. He added that; “Not withstanding the above, the Corporation is required to afford all parties that may be potentially affected, an opportunity to be heard before a decision is taken in respect of the matter.”
Kgoboko called on all bidders to show cause why Tender No. 5265/21 should not be canceled by the Accounting Officer (Kgoboto) in terms of section 41(2) (e) and with or without the possibility of re-tendering in light of following considerations: BPC only requested an extension of validity from one bidder (the one awarded the tender) at the time of the approval of the award and not all bidders. Kgoboko explained that this was the basis of the complaint filed by one of the bidders dated 21 April 2022.
Another consideration for not re-floating the tender, Kgoboko said, was that there have been changes in the pricing of fuel since the issuance of the tender which have affected the specifications of the tender and may likely require alteration of bid prices of all bids.
“All affected bidders may communicate their position in writing within ten (10) business days from the receipt of this letter. A hearing shall be scheduled seven business days after the receipt of bidders’ submissions, or such other date as may be agreed by the parties.”
Bidders expressed concern that the BPC is now sitting on the outcome of their submissions.
The (Tender validity) of the instructions to Tenders (ITT) states that “The Tender validity shall be 90 calendar days from the tender opening date. In the event the BPC whishes to extend the validity period, the BPOC shall request such extension from the Tenderer in writing prior to the expiration of the original tender validity period. The said rule of the ITT is in line with the then PPADB regulations.
The validity of the tender expired on 8th March 2022. BPC is said to have not requested extension from bidders as per the tender validity rule but instead took a decision to evaluate the tender and later awarded it on 7th April 2022 without asking for extension of its validity period from bidders hence violating its tender rules and those of the PPADB. The result is that the tender was null and void, something which the BCP conceded as it cancelled the tender.
Responding to Sunday Standard queries, BPC spokesperson Dineo Seleke said; “The tender has been awarded after the complaints process was resolved.” Sunday Standard sought to know what the status of the tender is after one of the bidders had filed a complaint resulting in it being canceled and later the cancellation being withdrawn.
Seleke said following notification of the award, various complaints were filed by more than one bidder. “The complaints were duly considered after which a decision was taken to cancel the tender.”
According to Seleke, “After considering the process followed to cancel the tender, the Corporation withdrew the cancellation and subsequently issued a notice that called upon all bidders to submit notices to show cause whether or not the tender may be canceled, as required by due process.”
She said: “Only two bidders responded to the notice and made submissions as to why the tender should not be canceled. The submissions were reviewed, and a decision was taken not to cancel the tender as there were compelling reasons submitted by the bidders. The decision to award the tender to the qualifying bidder was accordingly upheld.”
Seleke said: “No further complaints were received thereafter. In addition, we are not aware of any proceedings at the Public Procurement Tribunal and/ or the High Court regarding the said tender.”
