CSOs Call For Public Procurement Reform

In the wake of scandals from HoneyBee Pharmacy to 42for42 civil society groups are calling for action to address the “continued misuse of public funds” as revealed in the Auditor General’s annual report.

The Consumer Unity Trust Society (CUTS), Alliance For Community Action (ACA), Oxfam In Zambia and Transparency International Zambia (TIZ) have together issued an account of the problems with public procurement, as well as suggested remedial measures for tackling the situation.

The groups note that public procurement is “an important tool for achieving socio-economic development” and is one of the most important components of expenditure by the Government of Zambia, accounting for an estimated 10 percent of the Gross Domestic Product (GDP).

It “should therefore be based on the principle of “value for money” resulting in the best quality of goods and services,” they argue.

However, they point to the findings of the Auditor General’s annual report to highlight the problems such as the “failure to follow procurement procedures, wasteful expenditure and undelivered materials among other issues.”

“The last three AG reports highlight over ZMW34 million in undelivered materials alone. This money has however not been recovered,” the groups note.

Anti-competitive bidding is identified as a particular problem, which results in higher prices but also lower quality services.

According to research conducted by the Consumer Unity and Trust Society (CUTS), the procurement process is marked by significant departures from competitive bidding which is seen through the absence of standard contracts and tender document, absence of public access to tender documents and pre-qualifying criteria, short timelines and no enforced publishing of tender results. “Therefore, there is an urgent need for the government to follow transparent open procurement procedures that are aimed at ensuring fair conditions of competition for suppliers,” the groups state.

Another problem is the procurement of goods and services at exorbitant prices, whereby government pays prices above the market value. The groups also advocate for more policy coherence to strengthen the legal framework, as well as better implementation and enforcement of existing laws.

A lack of transparency and accountability, alongside limited monitoring mechanisms were also identified as problematic, resulting in corruption and non-compliance.

Setting out their recommendations the groups write that, “The law should require that the people found wanting from the misuse of public funds are punished stiffly. Also, the government must address issues of competition by broad basing of bidders through satisfactory publicity on procurement opportunities or objective pre-qualifying criteria for bidders, fixing timelines for processing the bids to obviate interference in the procurement process. Additionally, the government must ensure that it sources and procures quality affordable goods and services from suppliers to ensure value for money thus significantly reducing the misuse of public funds. The government through the Ministry of Finance, must strengthen and come up with monitoring mechanisms such as good procurement procedures and internal control systems and the development of a fraud prevention programme to reduce fraud and non-compliance.”

“There is need to keep pushing government to expedite the electronic Government Procurement system (e-GP) to be rolled out country wide. This will promote open procurement and allow for stakeholders to monitor and participate in the procurement processes,” the continue.

“Furthermore, the Government must ensure policy coherence when it comes to public procurement in the country for the appropriate management of public finances while maximising impact for citizens. The government must also develop provisions in the regulatory and legal framework to adequately enforce as well as promote accountability and transparency. Finally, the government must foster the engagement of citizens and Civil Society Organisations (CSOs) in procurement oversight,” they conclude.