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Most users ever online was 32 on Fri Mar 08, 2013 10:22 pm

Appeal Case No. 32 of 2015-16 M/s Brothers Contractors vs Mzumbe University - BANK STATEMENT

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Appeal Case No. 32 of 2015-16 M/s Brothers Contractors vs Mzumbe University - BANK STATEMENT

Post  RJM on Mon Aug 22, 2016 8:10 pm

To me this case draws a line between the fulfilling the requirement and the value of the requirement in the procurement process. After reading the ruling, a million dollar question I asked myself "is it box ticking exercise" or "value addition in the process". In the referred tender, one of the requirements was to submit a Bank Statement as provided in the tendering document.

"Appellant's submission (M/s Brothers Contractors) was that, the submission of a Bank Statement was not necessary as they had attached all relevant documents indicating financial capability to perform the contract including the financial statement and evidence of access to a bank loan in accordance to R116(a)/446/2013. In supporting his argument, M/s Brothers Contractors submitted that , Bank Statements only show history of bank transactions done over particular period, but does not represent the worth of the account holder or prove financial capability. As sch, a Bank Statement does not add value to value to qualification information and it was irrelevant to be mentioned in the Tender Dossier".

"Respondent's submission (Mzumbe University) was that, M/s Brothers Contractors was disqualified due to failure to submit a Bank Statement and that, all bidders were required to comply with this requirement in order to measure the liquidity of the bidders".

PPAA's ruling, since the M/s Brothers Contractors failed to submit the required document (Bank Statement) led to disqualification as per R204(2)(k)/446/2013 and evaluation process was consistent with the terms and conditions set forth in the Tender Dossier.

I am not disputing PPAA's position. My main concern is whether the practitioners clearly understand "what documents to ask" and "what  they should do with such documents" as far as liquidity/financial capability is concerned. My humble views;

1. I doubt if there were factors/indicators stipulated in the Tender Dossier which were to be analysed by Mzumbe University to ascertain the liquidity/financial capability. If there were no factors/indicators clearly stated in the Tender Dossier, then, "this was box ticking exercise - YES or NO". This implies that if bidder submit a Bank Statement, then, meet the requirement without any analysis to determine financial soundness of a firm. If this is the case, is this the real intention of submitting such documents? My doubt is inconclusive as I haven't seen the evaluation report to confirm.
2. Can a Bank Statement only be used in determining financial soundness of a firm? No wonder M/s Brothers Contractors submitted "Bank Statements only show history of bank transactions done over particular period, but does not represent the worth of the account holder or prove financial capability. As sch, a Bank Statement does not add value to value to qualification information and it was irrelevant to be mentioned in the Tender Dossier".

What's your take?

RJM

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