The Zambian government cancelled its second contract in three weeks awarded to Chinese companies, underscoring the growing controversy surrounding technology-related contracts, according to a report in CFOWorld.

A $220-million contract for a digital migration project was awarded to China-based Star Software Technologies Co. after a successful bid, but the Zambian government cancelled it due to irregularities in the way the contract was awarded, the report said.

Earlier this month, the Zambian government terminated a $210-million closed-circuit TV camera contract with China’s ZTE following allegations of corruption in the manner in which the contract was awarded.

When Star Software was announced winner of the contract a few months ago, two other Chinese companies, ZTE and Huawei Technologies, immediately appealed the decision. They pointed out irregularities in the bidding process.

The contract failed to state that Star Software had offered refurbished umatic and betacam machines, a technology deemed obsolete, the report said.

Zambia has since called for the arrest of government officials involved in awarding the contract to Star Software. Transparence International Zambia Executive Director Goodwell Lungu said, “while the action that has been taken by the Zambian government to cancel the tender is recommendable, leaving the perpetrators of such irregularities to go scot-free may cause future potential danger as the perpetrators may opt to use the same weaknesses that led to the cancellation of the tender.”

The TV-camera project was intended to help with crime prevention, traffic management and monitoring of the streets of the capital, Lusaka. The Zambian government could have lost $100 million if the contract had not been canceled because the price was “exaggerated,” according to government sources.

Zambia’s anticorruption watchdog, the Anti-Corruption Commission, is investigating.

Information Secretary Emmanuel Mwamba said the Kenyan government has an obligation to ensure that it executes any government project in a transparent manner.

Chinese telecom companies have been accused of corruption in the manner in which they secure telecom contracts in other African countries including Nigeria, Uganda, Algeria and Kenya, the report said.