MoH FAILS TO EXPLAIN TFM SCANDAL

THE US$100 million TFM Holdings contract should not have been terminated via the ‘convenience’ clause because its implication is that government is in breach of contractual obligations and would therefore lose millions of dollars in compensation to the contractor, the Parliamentary Public Accounts Committee (PAC) has warned.And Prof Lackson Kasonka was yesterday at pains to explain why he had terminated the TFM contract using a weak clause whose implication was that government was in breach of its contractual obligations and would therefore have to pay.The PAC has said government’s termination of the TFM contract to construct prefabricated hospitals using the convenience clause should have been avoided because the clause was weak should the contractor sue the State.The Committee has hence chastised Prof Kasonka for terminating the US$100 million TFM Holdings contract to construct via the ‘for convenience’ clause whose cost implication would be gigantic.Prof Kasonka had claimed that the Ministry of Health had valid reasons […]