Treasury delists defaulting suppliers, bans pre-payment of services due to non-delivery

The Ministry of Finance and Economic Development has blacklisted a number of suppliers who failed to deliver goods and services after receiving advance payments from the government, Permanent Secretary George Guvamatanga has confirmed.

Speaking before the Public Accounts Parliamentary Committee (PAC) recently, Guvamatanga said the government will no longer make advance payments to suppliers contracted by ministries, departments, and agencies (MDAs), following revelations of widespread abuse of public funds.

"Those who have not delivered goods and services have been banned from transacting with government," Guvamatanga told MPs. "We have actually banned the advance payment from most of the goods and services that MDAs secure from various suppliers."

The move follows damning findings by the Auditor General's report, which exposed how several goods and services were paid for but never delivered, leading to the loss of millions of dollars in taxpayer funds.

"We were shocked by what we discovered," said Guvamatanga. "But I think following that intervention, there is now a very marked improvement."

He further revealed that some of the fraudulent activities involved government officials who colluded with suppliers to siphon off funds under the guise of procurement deals.

Guvamatanga warned that disciplinary action would be taken against accounting officers within MDAs who continue to engage in or enable such corrupt practices. "We did emphasise that there will be an action taken against the accounting officers in the event that they continue with this practice."

PAC Chairperson Charlton Hwende requested that the Finance Ministry furnish Parliament with a full list of companies that defaulted on their obligations.

"We will provide the list. It is available," Guvamatanga responded.

He went on to describe a recurring pattern among defaulting contractors who often re-emerge under new company names with the same directors in order to secure fresh contracts.

"It's the same companies, they change directors, they go and change directors, they get another contract," he explained. "Two, three years later, they change the name of the company, but they remain with the same directors."

To counter this, Guvamatanga said the Ministry is now requiring defaulters to submit bank statements and full disclosure of corporate identities, in a bid to unmask and shut out serial offenders.

The blacklist and stricter procurement controls are part of Treasury's broader effort to enhance public accountability, safeguard state resources, and restore integrity within government procurement systems.