Harare, Zimbabwe: Faramatsi Motors has duped the government in a botched deal involving supplying 35 top-of-the-range vehicles.
Despite receiving nearly the full payment upfront, the company has failed to deliver the promised vehicles, leaving the Ministry high and dry.
In a report from the Office Of The Auditor General covering the year ended December 31, 2022, it was revealed that the Ministry entered into a contract with Faramatsi Motors for the supply of 35 vehicles at a contract price of ZWL$182,621,960.
The agreement stipulated that the Ministry would pay 50% of the contract price before delivery, with Faramatsi Motors expected to deliver the vehicles within four weeks.
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Contrary to this agreement, the Ministry paid a staggering ZWL$ 175,000,000 upfront, well above the initial 50% requirement.
However, Faramatsi Motors only supplied 11 vehicles, leaving a balance of 24 undelivered vehicles at the conclusion of the audit in May 2024.
This blatant failure to deliver on their contractual obligations has gone unpunished, as the Ministry has yet to enforce any of the sanctions stipulated in Clause 5.2 of the contract.
These sanctions include forfeiture of performance security, imposition of liquidated damages, or termination of the contract.
Despite multiple empty promises from Faramatsi Motors, the Ministry had not taken decisive action to enforce the contract’s terms. It was only after continuous delays and unmet commitments that the Ministry wrote to the supplier, signalling its intention to initiate the debarment process and invoke Clause 5.2 if the supplier failed to perform their obligations.
The non-delivery of the vehicles by Faramatsi Motors poses significant financial risks to the Ministry. Without enforcing the contract’s terms, the Ministry stands to lose a substantial amount of money, potentially receiving nothing in return for their investment.
