- The complaints center on the contracted service providers' failure to respect their employees' right to fair labour practices.
- It incorporates violation of the right to fair remuneration as set out in the published government minimum wages regulations.
Public Procurement Regulatory Authority (PPRA) has raised an alarm on contracted service providers undercutting employees' wages and subjecting them to unfair labour practices.
This after it received complaints from procuring entities on contract implementation challenges related to contracted services.
"The highlighted services include security, cleaning, gardening and artisan, among others," the regulator says in a statement.
"The complaints center on the contracted service providers' failure to respect their employees' right to fair labour practices including but not limited, right to fair remuneration as set out in the published government minimum wages regulations."
PPRA is mandated under Section nine of the Public Procurement and Asset Disposal Act, 2015, pursuant to Article 227 of the 2010 Constitution, to monitor, assess and review public procurement and asset disposal system.
This is to to ensure that it respects the national values and other provisions of the Constitution, including Article 227 Article 227(2(d), which provides the basis for legislative sanctions against persons guilty of serious violations of fair employment laws and practice.
The regulator has therefore called on accounting officers to ensure strict adherence to the eligibility to bid requirements set out in the Act.
"Accounting officers should ensure that persons bidding for a contract in public procurement or asset disposal, provide evidence to establish that they fulfill all the eligibility requirements," it says in part.
"Procuring entity should additionally conduct due diligence to confirm and verify the qualifications submitted by the identified successful tenderer."
Nevertheless, it adds that during contract implementation, procuring entities should put in place effective contract monitoring mechanisms to ensure contracted service providers adhere to the terms and conditions of the contracts.
The regulator further advises accounting officers to ensure participating bidders demonstrate that the quoted tender sums meet the minimum basic salary as per the prescribed government minimum wage requirements.
This is for a particular category of staff, plus applicable statutory housing allowance, statutory deductions and employer's contributions towards Social Health Insurance Fund (SHIF), National Social Security Fund (NSSF), the Affordable Housing Levy or such other statutory contributions required of the employer.
"Tenderers must demonstrate that the quoted tender sums also provide for the applicable insurance covers, overhead costs and a reasonable profit margin plus the applicable Value Added Tax at the prevailing rate at the time of tender submission," PPRA says.
Accounting officers are further advised to include a clause in the resultant procurement contracts stating that failure by contractors to remunerate employees accordingly, and to comply with other applicable employment laws, constitutes serious rights violation.
On account, this will form ground for immediate termination of the contract, encashment of performance bonds and initiation of debarment proceedings against such contractors, says the watchdog.
In case of any false submissions by bidders, the regulator advises accounting officers to inform the authority for further action pursuant to Sections 41 and 176 of the Act.
Procuring entities with limited capacity to effectively and efficiently manage, administer and monitor procurement contracts are advised to seek assistance from the National Treasury or transfer such functions to other procuring entities with capacity in accordance with the Act.