The policy directive recently issued on hardware purchases does not necessarily mean that Government will not buy at all from those four Companies.
The Public Service Commission (PSC) had last Thursday issued a policy directive that no hardware supplies are to be purchased from R C Manubhai, Vinod Patel, Kasabia and Carpenters Hardware until further notice unless approved by the Minister for Finance.
Mr Parmesh Chand, PS for Public Service clarified that Government Ministries, Departments, Agencies can still liaise with the four companies and obtain the required quotation for competitive pricing.
If any purchases were to be effected, there will need to be referrals made to the Minister for Finance on a case by case basis for his consideration and approval.
Mr Chand said there is nothing abnormal in this. Instead of individual Ministries, Departments and Agencies making their decisions in isolation, they are for the time being centralized with the Minister for Finance.
On why those 4 Companies were singled out, Mr Chand said that those Companies are dominant players in the market. Government has decided to effect its purchases in a controlled manner in this instance given the work currently undertaken by the Commerce Commission on prices of hardware supplies in the market.
Mr Chand confirmed the decision will be reviewed at an appropriate time when the objectives of the Policy directives are accomplished.