STATUTORY BODIES (CONTROL OF CONTRACTS)

CHAPTER 18:07
STATUTORY BODIES (CONTROL OF CONTRACTS)

ARRANGEMENT OF SECTIONS

    SECTION

    1.    Short title

    2.    Interpretation

    3.    Power of appropriate Minister to issue Orders

    4.    Duties of statutory bodies in respect of future contracts

    5.    Approval of contracts

    6.    Power of appropriate Minister to require information

    7.    Consequences of entering into contract without approval

    8.    Establishment of Councils of Inquiry

    9.    Functions of Council of Inquiry

    10.    Power of appropriate Minister to direct an inquiry

    11.    Scope of the inquiry

    12.    Matters to be included in report of Council of Inquiry

    13.    Powers of appropriate Minister on receipt of report

    14.    Penalty for violation of condition in Order

    15.    Application of certain sections of the Commissions of Inquiry Act to Councils of Inquiry

    16.    Regulations

        Schedule

29 of 1966
41 of 1966
4 of 1981
G.N. 137/1966
127/1973
114/1990
32/1995
86/1998

    An Act to make provision for the control in the public interest of contracts entered into by statutory bodies and for matters connected therewith

1.    Short title

    This Act may be cited as the Statutory Bodies (Control of Contracts) Act.

4 of 1981

2.    Interpretation

    (1) Interpretation (1) In this Act, unless the context otherwise requires—

    “Appropriate Minister”, in relation to any statutory body, means the Minister for the time being charged by the President with responsibility for that body for the purposes of this Act;

    “contract” means a contract for the supply of goods or services or for the construction of any building or other works, whether such contract is made or intended to be made within or outside Malawi;

    “Council of Inquiry” means a Council of Inquiry established by the Minister under section 8;

    “existing contract” means any contract made between a statutory body and any other person which has been entered into at the date of the making by the Minister of an Order for the holding of an inquiry into that contract or into the class of contract to which it belongs;

    “statutory body” includes—

    (a)    all local authorities, and all co-operative societies incorporated under the Cooperative Societies Act;

    (b)    every other corporation, board, council or other body of persons, whether corporate or unincorporate, whether established or incorporated within or outside Malawi, the name or description of which is specified in the Schedule.

    (2) The Minister may from time to time by notice published in the Gazette amend the Schedule by the addition of the name of any other body whether established or incorporated within or outside Malawi.

    (3) In considering the public interest under any of the provisions of this Act, account shall be taken of the national economic interests of Malawi as a whole, including its future economic development, and of the financial welfare of the statutory body concerned.

3.    Power of appropriate Minister to issue Orders

    (1) Where the appropriate Minister is satisfied that it is in the public interest that a statutory body should not enter into a contract or class of contract without his prior approval he may issue an Order in accordance with subsection (2).

    (2) An Order under subsection (1) shall specify—

    (a)    the statutory body or bodies; and

    (b)    the contract or class of contract,

to which section 4 shall apply.

    (3) Every Order issued under this section shall be published in the Gazette and shall take effect from the date of publication.

4.    Duties of statutory bodies in respect of future contracts

    (1) A statutory body in respect of which an Order issued under section 3 has been published in the Gazette shall not enter into any contract referred to in such Order either specifically or by reference to a class of contract without the prior approval in writing of the appropriate Minister.

    (2) A statutory body which desires to enter into a contract which requires the prior written approval of the appropriate Minister shall apply to such Minister for approval and shall furnish such information and documents relating to the subject matter and circumstances of the desired contract as that Minister shall require.

5.    Approval of contracts

    (1) Upon receiving information under section 4 (2), the appropriate Minister may, if satisfied that it is in the public interest so to do, approve the making of a contract.

    (2) The appropriate Minister may, to the extent that he is satisfied that it is in the public interest so to do, attach conditions to his approval of the making of any contract for which his written approval is required, which conditions may relate to the parties to or the period or other terms of the contract, and shall be expressed in writing.

6.    Power of appropriate Minister to require information

    The appropriate Minister may require…