South Sudan’s Information Ministry offered a multi-million dollar TV contract to a higher bidder, according to documents and disclosures from company and government officials, which raise questions about the contracting process.
The Ministry of Information signed a contract with Chinese ZTE corporation for a digital television project worth about $51 million for the first phase. But an official of another Chinese company Huawei said other bidders were willing to do the project for $31 million less.
The purpose of the contract was to modernize the equipment and services of the state broadcaster SSTV.
A senior South Sudanese official speaking on condition of anonymity has alleged that one of the competing Chinese companies offered payoffs to ministry officials to gain an advantage in the selection process.
ZTE was awarded the contract over Huawei after offering “huge kickbacks,” he said, saying the decision for the higher bidder was purely a matter of personal financial motivation.
The official alleged that the recent accusations of ‘forgery’ against Huawei are just part of a cover-up on the part of the officials at the Information Ministry.
According to a document sent by a Huawei employee to the Information Ministry, ZTE’s contract price for phase one was $51 million whereas offers from other companies were only about $20 million.
The Huawei company official also pointed out, “There is also no maintenance service in the original contract when it is usual to have a two years free service in most equipment contracts.”
In another document, Council of Ministers Resolution No. 43/2013, Government Secretary-General Abdon Agaw Jok Nhial reports the authorization of only $18 million for the TV project, not $51 million as later agreed with the contractor.
“The Council of Minister in its Regular Meeting No. 11/2013 held on Friday, 5th April 2013, resolves to approve the amount of USD 18,000,000 (only eighteen million United States Dollars) for the Ministry of Information and Broadcasting to finance its project of migration from analogue to digital transmission,” reported Abdon after a sitting of the Council of Ministers.
Whether the Council later authorized an increase of budget for the TV project remains unclear, given that the Ministry entered into an agreement with ZTE worth nearly three times the initially authorized amount.
Related coverage:
Document alleged ‘big problem’ with S Sudan Information Ministry contract (29 Oct.)