Last year one Government Agency advertised a competitive tender for supply of goods. We applied and were selected to supply the goods effective from October last year. However last week we received a summons from a law enforcement agent commanding our managing director to report to their offices with a document showing whether within 30 days after the execution of the contract with the Government Agency we filed a statement to the TRA and PCCB stating any commission we paid to any person who helped us to get the tender. We don’t understand what actually our fault is as we have not paid any commission. Can you enlighten us?
It is a mandatory requirement under section 85 of the Public Procurement Act [Cap.410 R.E 2022] that within 30 days after signing a procurement contract with any Government agency, department, ministry, authority or company, the tenderer must furnish to the TRA and PCCB a written statement stating the person and amount of commission the tenderer paid or is planning to pay to such a person as a commission for assisting the tenderer to get the contract. This statement must be furnished to the TRA and PCCB even where no middleman was used by the tenderer or no commission was paid by the tenderer to any middleman for assisting the tenderer to get the tender. Hence even if there was no commission paid, you should have furnished such a document. A tenderer’s failure to furnish a written statement to PCCB and TRA within 30 days after the execution of the procurement contract with the Government entities constitutes a criminal offence and that may be the reason for the summons.