Finance Minister calls for an effective and transparent procurement system
TIME PUBLISHED - Wednesday, November 21, 2012, 7:04 am
Finance Minister, Alexander Chikwanda has called for an effective public procurement system which is transparent in order to enhance economic growth and development.
Mr Chikwanda said yesterday when he launched the Standard Bidding Documents in Lusaka that public procurement was a critical component in the management of public resources.
Standard bidding documents, which were part of the on-going reforms in the public sector, were aimed at achieving optimum degree of order in the procurement process as well as reduce bureaucracy and tender processing time.
“It follows that an inefficient and bad procurement system can be a major impediment to growth and development especially that the acquisition of works, goods and services by the public sector have to go through such a system,” he said.
The minister who is chairperson of the Zambia Public Procurement Authority (ZPPA) said it was important that a modern public sector was built on a sound procurement system that was transparent, efficient and corrupt-zero rated.
“More importantly, the procurement system must be an important catalyst in achieving value for money. Hence the need for procurement reforms has become an immediate necessity,” he said.
Mr Chikwanda said the Government had been pushing for the implementation of the decentralisation policy since taking over last year in order to ensure that every citizen accessed public service regardless of the location.
He noted that the enactment of the Public Procurement Act and its regulations now provided a good platform for a decentralised procurement process.
The role of the ZPPA would from January 1, 2013 change as the institution would now assume an oversight and a regulatory role while the procurement function would be decentralised and devolved to procurement entities.
ZPPA recently made an upward revision of thresholds which marked another important chapter in the procurement reforms.
Mr Chikwanda noted that the newly launched measure would rationalize the procurement process and enhance efficiency and effectiveness as well as provide a basis for conducting fair, transparent and credible tender processes.
He applauded the commitment and continued support from cooperating partners as well as the contribution from civil society organisations.
Labels: ALEXANDER CHIKWANDA, PROCUREMENT SYSTEMS
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Level tender playing field
Friday, 12 October 2012 00:00
Robert Garai Muganda Buy Zimbabwe
THE issue of local companies continuously losing out on State tenders is beginning to sound like a broken record. Over and over again we hear that this and that local company has lost a bid to a foreign alternative and this will definitely impact on any efforts to rebuild our economy. The question that we should be asking ourselves is are we doing ourselves any favour by awarding these tenders to foreigners or local fronts for foreign producers?
Recently, the local motor industry was devastated by the loss of a US$6,6 million tender to commodity brokers fronting for foreign firms. The tender was for the supply of 100 4x2 one-tonne diesel trucks, 100 4x4 one-tonne diesel trucks and 93 4x2 one-tonne petrol trucks.
Willowvale Mazda Motor Industries managing director Engineer Dawson Mareya said the challenge with the continued loss of tenders is that it cripples the industry’s ability to plan for the development of the sector.
It has also forced potential investors to shy away from investings into the sector.
Having been to the Quest Motor Corporation plant in Mutare one prays that the multimillion-dollar investment spent on jigs and other machinery does not go to waste because of a serious lack of support.
The disturbing thing is that the specifications of the supplied vehicles in the last tender lost by local motor industry are well within the scope of our two leading car assembly plants. This had led me to ask three questions.
l How does one afford to sleep at night knowing that they have exported taxpayer’s money to another country to buy such an order when these vehicles are available in the country?
Here I was thinking that taxpayer’s money was meant to develop the country’s infrastructure rather than support the expensive tastes of a few individuals.
It is surprising to see the State Procurement Board supporting commodity brokers who have no infrastructure at the expense of manufacturer.
l How does one find sleep at night knowing that over 600 employees in the motor industry have to take a break from work because there is no production happening in the sector?
Here I was thinking that every Zimbabwean was committed to fighting the highly unsustainable unemployment rate that has seen even our educated brothers and sisters roam the streets aimlessly.
l How does one sleep at night after hearing our neighbours brag about the high level of industrial development in their respective countries?
Here I was thinking that as Zimbabweans we are a proud lot who would die to see their economy spring back into action.
I have been led to believe in the importance of pride, wealth and jobs and I believe that a lot more Zimbabweans share this same belief.
If this is the case then maybe it is time we demand accountability each time public funds are involved.
Buy Zimbabwe has been advised that the difference between the price charged by Willowvale Mazda Motor Industries for the supply of 93 4 x 2 one-tonne petrol trucks and the cost of vehicles supplied by the commodity broker was only US$4 000.
This does not even consider the fact that despite a preferential tender awarded to the lowest bidder in terms of Section 21 of the Procurement Regulations 2002, local companies also enjoy a 10 percent price advantage in any tender.
The question is why was this not considered with the vehicle tender in this case?
Are we saying that WMMI did not have stocks? The answer is no.
As I write Mazda has stock of over 200 different models in their yard.
In any case, any company wishing to buy through the State Procurement Board is directed to get a waiver from the President’s Office to procure outside Zimbabwe. This generally looks like it has been ignored.
Engineer Mareya says despite numerous tenders being floated they have only signed two waivers giving the procuring entity the go-ahead to buy vehicles outside the country.
It seems like we are clandestinely ignoring a Presidential directive to our own peril. We continue to sell our souls but worst of all we are selling our own jobs!
Just looking at the money that the local motoring industry has lost in the year-to-date is enough to turn one’s stomach.
In July, 2012 150 single-cab pick-up trucks were bought from outside on behalf of CMED and 263 3L double cabs were bought for the Zimbabwe National Army. These are just some of the disturbing figures this country has to deal with.
As part of the search for a solution, I believe the local motor industry can benefit tremendously from adopting the collective approach. The vices affecting the industry need to be attacked head strong.
Till next week . . . God Bless.
Robert Garai Muganda is the General Manager Media and Communications for Buy Zimbabwe. He can be contacted on: email: robert@buyzimbabwe.org.zw mobile: 0772714233; Facebook: buy zimbabwe campaign
Labels: PROCUREMENT SYSTEMS
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Govt launches probe into MMD oil deal
By Mwala Kalaluka
Thu 13 Sep. 2012, 10:20 CAT
THE government joint investigative team has questioned Zambia's former high commissioner to Nigeria, Alexis Luhila, in connection with an oil deal hatched by MMD under Rupiah Banda.
Joint probe team public relations officer Namukolo Kasumpa told The Post in response to a press query yesterday that Luhila appeared before the investigative wings last Friday afternoon.
This followed recent revelations by energy permanent secretary George Zulu that officials in the MMD administration paid huge sums of money for six shipments of oil worth 90,000 metric tonnes but the commodity was never supplied to the country, while a Nigerian national was claiming US$5 million as commission.
According to MMD sources, former president Banda initiated the fake Nigerian oil deal and operated it through a company, SARB, who had registered specifically for this purpose.
Labels: MMD, PROCUREMENT SYSTEMS
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Malawi cancels K40bn fertiliser procurement tender: See list of previous suppliers
By Nyasa Times
July 21, 2012
Malawi’s Ministry of Agriculture and Food Security, has announced cancellation of the Tender of the Procurement of Subsidised Fertilizer for 2112 – 2013 Growing season – IBF Number: 019/FERT/IPC/12/001. The ministry said the tender will be re-advertised “after reviewing measures for enhancing the implementation of the programme.”
According to Finance Minister Dr. Ken Lipenga, the major allocation within the Ministry of Agriculture budget in the 2012/13 National Budget he presented recently is for the Farm Inputs Subsidy Program (FISP) which has been allocated a total of K40.6 billion.
“These funds are for the purchase of 150,000 metric tonnes of fertilizers comprising 75,000 metric tonnes of Urea and 75,000 metric tonnes of NPK fertilizers which will be distributed to 1.5 million farm families at a price of K500 per bag,” said Lipenga when he presented the financial plan.
Before is the list of previous suppliers:
Fertiliser subsidy program
NOTICE OF 2010/2011 SUBSIDISED FERTILIZER CONTRACT AWARDS
Subject of Procurement: Supply and Delivery of Fertilizers
Procurement Reference Number: 019/Fert./IPC/09/010
Procurement Method: International Competitive Bidding (ICB)
Date: 18Th October, 2010
Country: Malawi
The Government of the Republic of Malawi through the Ministry of Agriculture and Food Security wishes to inform the general public and the international Community that contracts for the supply and delivery of subsidized fertilizers for the 2010/2011 Farm Input Subsidy Programme (FISP) have been awarded to the below listed successful bidders.
NO.
NAME OF CONTRACTOR
TOTALCONTRACTSUM IN MK
ADDRESS OF CONTRACTOR
1 Export Trading
1,349,926,240.00
P.O. Box 51722, Limbe
2 Farmers World
1,030,873,710.00
P.O. Box 1631, Lilongwe
3 Nyiombo Investments
2,103,315,071.00
P.O. Box 40654, Lilongwe
4 Sealand
866,342,361.00
P.O. Box 520, Lilongwe
5 SFFRFM
865,679,320.00
P.O. Box 2505, Blantyre
6 Mulli Brothers
2,211,331,734.00
P/Bag 5145, Limbe
7 Simama General Dealers
2,099,181,460.00
P.O. Box 258, Karonga
8 Malawi Fertilizer Company
545,293,100.00
P.O. Box 1631, Lilongwe
9 Optichem (2000) Ltd
740,646,850.00
P.O. Box 40039, Lilongwe
10 Farm -Chem
647,895,500.00
P.O. Box 51776, Blantyre
11 Xelite Strips Ltd
209,145,220.00
P.O. Box 1911, Lilongwe
12 Krish Trading Company
526,651,900.00
P.O. Box 353, Lilongwe
13 Astro Chemicals
659,262,100.00
P.O. Box 1251, Blantyre
14 Transglobe Produce
Exports
707,001,743.00
P.O. Box 5025, Blantyre
15 Mapeto Wholesalers
1,155,603,100.00
P.O. Box 5243, Limbe
16 Shire Ltd
1,072,626,970.00
P.O. Box 5491, Limbe
17 B & N Investments
234,989,917.00
T/A Mitundu, Lilongwe
18 Masina Investments
251,580,480.00
P/Bag 72, Lilongwe
19 Gassom Traders
193,989,780.00
P.O. Box 395, Lilongwe
TOTAL: 17,471,336,556.00
NOTICE FOR 2010/2011 TRANSPORTATION SERVICES CONTRACT AWARDS
Subject of Procurement: Transportation Services
Procurement Reference Number: 019/Trans/Fert/IPC/09/012
Procurement Method: National Bidding (NCB)
Date: 18Th October, 2010
Country: Malawi
The Government of the Republic of Malawi through the Ministry of Agriculture and Food Security wishes to inform the general public that contracts for provision of transportation services for the 2010/2011Farm Input Subsidy Programme (FISP) have been awarded to the below listed successful transporters. This contract does not have total contract price as it is based on the availability of the contractedtransporter and the unit rate per kilometer per metric tone. Many thanks to all those who participated in the bidding process.
NO.
NAME OF CONTRACTOR
Unit Rate/Kilometer/Metric Tonne (MK)
ADDRESS OF CONTRACTOR
Long Haul
Short Haul
Bad Road
1 Chizamsoka
Investments
30.00
3,000.00
34.00
P.O. Box 11, Chitipa
2 Zingakake Transport
30.00
3,000.00
34.00
P.O. Box 303
Liwonde
3 Salpha Enterprises
30.00
3,000.00
34.00
P.O. Box 1122
Lilongwe
4 Mzati Investments
30.00
3,000.00
34.00
P.O. Box 31140,Lilongwe
5 Yafuka Produce
Trading
30.00
3,000.00
34.00
P.O. Box 197,Thyolo
6 Mulli Brothers
30.00
3,000.00
34.00
P/Bag 5145,Limbe
7 Masina Investments
30.00
3,000.00
34.00
P.O. Box 72,Lilongwe
8 Simama General
Dealers
30.00
3,000.00
34.00
P.O. Box X42,Lilongwe
9 The Road Transport
Operators
Association
30.00
3,000.00
34.00
P.O. Box 30740
Chichiri
10 K C Freight
30.00
3,000.00
34.00
P.O. Box 90218,Blantyre
11 Swank Haulage
30.00
3,000.00
34.00
P.O. Box 489
Mzuzu
12 Farwest Investments
30.00
3,000.00
34.00
P.O. Box 143,Mulanje
13 Mwenera Transport
30.00
3,000.00
34.00
P.O. Box 410
Mzuzu
14 Peter’s Freight
30.00
3,000.00
34.00
P.O. Box 305,Lilongwe
15 Mico Transport
30.00
3,000.00
34.00
P.O. Box 1`279,Lilongwe
16 Anala Investments
30.00
3,000.00
34.00
P.O. Box 205,Mponela
17 P. W. C. Investments
30.00
3,000.00
34.00
P.O. Box 51274,Limbe
18 World Wide
Wholesalers
30.00
3,000.00
34.00
P.O. Box 250,Lilongwe
19 B & G Transport
30.00
3,000.00
34.00
P.O. Box 3,Mzuzu
20 Mag Logistics
30.00
3,000.00
34.00
P.O. Box 31863
Lilongwe
21 Amajuba general
Dealers
30.00
3,000.00
34.00
P.O. Box 20509,Lilongwe
22 Agricultural Produce
Transporters
Association
30.00
3,000.00
34.00
P.O. Box 40165,
Kanengo
23 MEAR Trucking
30.00
3,000.00
34.00
P.O. Box 40160,Lilongwe
24 I Investments
30.00
3,000.00
34.00
P.O. Box 20439,Lilongwe
25 Northern Region
Transporters
Association
30.00
3,000.00
34.00
P.O. Box 598,Mzuzu
Labels: FSP, PROCUREMENT SYSTEMS, TENDER OFFERS
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Government procurement agencies need cleansing - Mukanga
By Chiwoyu Sinyangwe and Simeon Gboun
Sat 16 June 2012, 13:25 CAT
ALL government agencies and ministries dealing in procurement processes need cleansing to achieve efficiency and rid them of corruption, says works and supply minister Yamfwa Mukanga.
On Thursday, Vice-President Dr Guy Scott said the Road Development Agency (RDA) and the Zambia Public Procurement Authority (ZPPA) need cleansing and panel beating to improve on delivery of projects, especially in the road sector.
But sources say RDA does not have the capacity to effectively procure road works worth K4.2 trillion planned for this year following the dismissal of the entire procurement team last year in November by executive director Dr Michael Mulenga.
Vice-President Scott complained in Isoka that institutions like RDA and ZPPA did not seem to be up and carrying on working.
"There seems to be a lot of foot dragging going on inside these institutions and I think they need cleansing," said Vice-President Scott. "They need panel beating because the money is there...we don't want to open the door to corruption…to single-sourcing but at the same time we want to make the system work, that's the challenge that we have."
Reinforcing Vice-President Scott's concerns, Mukanga said there was need for government procurement agencies to work freely and transparently to be accountable to the nation.
"It is not only these institutions that require cleansing. I would like to extend this to all government agencies and ministries dealing in procurement processes," Mukanga said yesterday when he officiated at the RDA-organised "Roads Indaba" at Intercontinental Hotel in Lusaka yesterday.
Mukanga said it was time for all officers involved in procurement procedures to start declaring their interests in companies they own.
"Even as RDA, declare your interest in the companies you own so that we know that you own a company; you own this and you own that company so that when time comes for giving out contracts, it will be done transparently and it will be better because we will see a situation where people will definitely become almost corrupt-free," he said.
"That is the cleansing we are talking about. This perhaps will help us to work transparently and free; and corrupt-free in the issuance of contracts. It will definitely reduce the corrupt tendencies that people have been talking about. We need to point figures, not at others, but ourselves and see how best we can contribute to the change of the environment."
Mukanga said the government would not tolerate sub-standard performance among contractors in the road sector.
"Government will not sit back and see its coffers being depleted without corresponding progress in infrastructure development," said Mukanga. "Government is ready to reward quality delivered projects and will deal swiftly and decisively with poor performers. It cannot be business as usual, we are in a hurry to see that there is progress."
Earlier, Dr Mulenga said RDA was concerned about the performance of some contractors and consultants.
"Our major concern is the workmanship in some road projects," said Dr Mulenga. "We believe that the presentations during the Roads indaba will greatly help in refocusing ourselves to the funders, the government and people of Zambia…"
And sources within ministry of works and supply said RDA currently had "serious procurement bottlenecks".
"The guys who knew and understood how to draw tender documents have all been fired and right now, RDA has a backlog of works that need to be procured but the questions is 'who is going to draw up the tender documents?' I wonder how the government is going to expend K4.2 trillion planned for this year," said the sources.
In November 2011, Dr Mulenga fired more than 15 senior and junior officers in the procurement department without giving any reason for the massive terminations.
Labels: CORRUPTION, PROCUREMENT SYSTEMS, RDA, ZPPA
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Auditor General's report reveals flaws in procurement at NIPA
By Moses Kuwema
Mon 28 May 2012, 13:28 CAT
THE 2010 Auditor General's report has revealed that the National Institute of Public Administra-tion procured goods and services worth over K2 billion without obtaining the required three competitive quotations.
Section 1.4 of the public procurement Act stipulates that procurements valued above K5 million and up to K15 million shall be submitted to the tender committee for the examination and authorisation, subject to an assessment of at least three competitive quotations obtained from reputable or registered suppliers based on conformity with specifications, delivery schedules and prices or comparative prices.
However, contrary to procurement guidelines, the institute procured goods and services in amounts totalling K2,402,664,163 in 2010 without obtaining the required three competitive quotations, according to the report.
"Contrary to public stores regulation number 16, there were no receipt and disposal details in respect of various stores items costing K4,278,297,653 (general stores - K3,742,449,630 and K535,848,023 for fuel) procured during the period under review," read the report.
The report further revealed that assets valued at K5,425,649,896 did not have identification marks and no register was maintained.
The report also observed that NIPA main campus and Burma Road campus buildings located at stand number 3542 and 353, respectively, all valued at K2.2 billion had no title deeds.
This was contrary to the lands Act number 29 of 1995 that requires that institutions or individuals owning land should have or possess title deeds as proof of ownership.
The Auditor General's report also revealed that the NIPA governing council had two representatives from the private sector instead of one and this resulted in the council consisting of 10 members instead of nine as provided in article five of the NIPA Act.
And the report has revealed that the Zambia Postal Services Corporation (Zampost) entered into a lease agreement to rent a house on plot number 623 Salama Park, Ibex Hill for the area manager in Lusaka where the corporation paid rentals to the landlord amounting to K20,527,500 net of withholding tax for the period from October 22, 2011 to April 21, 2012.
The audit report has, however, observed that the property was owned by the area manager, and that although he declared interest on October 26, 2011, this was only made after the agreement had been signed on October 20, 2011 and rentals paid on October 25, 2011.
The report observed that the declaration was done in bad faith and the area manager's actions were tantamount to fraud.
The report further stated that the declaration of interest by the area manager could not have justified management's action of renting the property.
Labels: AUDITOR GENERAL, PROCUREMENT SYSTEMS
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State to amend Procurement Act
Monday, 07 May 2012 00:00
Lloyd Gumbo Herald Reporter
THE State Procurement Board is going through a metamorphosis geared at
improving its effectiveness, Finance Minister Tendai Biti has said. He said
Treasury was effecting changes to the Procurement Act following complaints by Cabinet Ministers over its poor showing. The amendments will provide for the creation of a board to oversee the activities and decisions of the State Procurement Board.
“I was given a go-ahead by the President to make major changes to the Act because there have been countless complaints among ministers about the Act and the State Procurement Board,” said Minister Biti.
Ministers were concerned that most Government projects were taking too long to be completed because of the SPB’s delays in awarding tenders.
In some instances, tenders were awarded to incompetent firms.
“Some Government tenders are being awarded to some charlatans who oftentimes would have tendered for the highest amounts. Some of the companies awarded these tenders don’t have the resources and are of no fixed abode,” he said.
Minister Biti said the amendments would see the minimum threshold for parastatals and Government departments’ procurement of goods and services increasing from the current US$50 000 to a yet-to-be-established figure.
The current law ignored the build–operate-transfer or build–own–operate–transfer system, particularly where the contractor was expected to invest his own money.
“We will also have an oversight board to review what would have been done by the SPB, the purpose of the oversight board is to guard the guard.
“There should be some review mechanism to make sure the person who wins a contract is double checked for accountability purposes.”
Public Works Minister Joel Gabuza said: “What gives us headaches is the problem with administration. I suspect they don’t have a staff complement to adjudicate tenders and this has resulted in delays of about three months before tenders are awarded.”
“Sometimes people would tender half the price of our average expectation and the SPB would give those companies tenders without looking at the capacity of the companies.
“When we see such tenders we sometimes recommend to the board not to give contracts to those companies because we know they are briefcase businesses but the board would insist.”
Labels: NEOLIBERALISM, PROCUREMENT SYSTEMS, TENDAI BITI, TREASON
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Oil procurement should be liberalised - Milupi
By Moses Kuwema
Wed 18 Apr. 2012, 13:29 CAT
ALLIANCE for Development and Democracy president Charles Milupi says the oil procurement process should be liberalised. In an interview, Milupi said the government must remove the "one holder syndrome" of allowing a few companies to monopolise the oil procurement process.
"This is because such things like monopoly bring with it corruption. I think that the oil procurement process must be liberalised. We should have many people bringing in this oil; ultimately that reduces the price and cuts out the corruption. At the moment, everybody has to bid to bring in goods and then that is where the pressure on corruption is but if other people were able to bring in finished products and it has already been shown that if you bring in finished products, you can have the fuel cheaper than it is now," Milupi said.
He said the oil procurement process involved large amounts of money, hence it was attractive to corruption by those in power.
"That's the easiest way they can make lots of money in no time at all. And, therefore, when you are dealing with a corrupt regime, you have to understand that that is one of the areas that is very attractive for them. Because you have a contract worth trillions of kwacha and you just give it to one contractor, it means corrupt regimes can use such and ultimately the country does not gain," he said.
Milupi said even when he served as chairman of the Public Accounts Committee, they questioned some of the oil deals.
"We questioned those deals especially the deal that was awarded to a company in Kenya, it was doubtful…By saying so, even the current procurement process, we should watch out that we do not repeat the same mistake," he said.
Milupi said there was need for the country to have an effective procurement process that should adhere to procedures and regulations.
Recently, chairman of the commission of inquiry into the Energy Regulation Board and oil procurement, Wynter Kabimba, disclosed that the government lost about K2 trillion between 2007 and 2011 in the oil procurement process through corruption and other malpractices by officers in the Ministry of Energy and Water Development, ERB and the Zambia Public Procurement Authority.
Labels: CHARLES MILUPI, OIL, PROCUREMENT SYSTEMS, WYNTER KABIMBA
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K2 trillion lost in corrupt oil procurement deals-Kabimba report
TIME PUBLISHED - Tuesday, April 10, 2012, 2:35 pm
The Commission of Inquiry constituted to investigate the operations of the Energy Regulation Board and the procurement of crude oil has revealed that from 2007 to 2011 the country lost about K2 trillion through acts of malpractices in the procurement system.
Commission chairperson Wynter Kabimba says the alleged corruption in the oil procurement system involved officials from the Zambia Public Procurement Authority (ZPPA) the Ministry of Energy and the ERB.
Mr. Kabimba noted that the commission also learnt that the companies that were allegedly corruptly engaged in the procurement oil have since bid again for a tender to supply fuel.
Mr. Kabimba has since recommended that the officers allegedly involved in corrupt activities be brought to book.
Another commission of inquiry tasked to investigate the installation of a Radar system at the Kenneth Kaunda Airport noted that the ministry of communication and transport interfered in the awarding of the contract by quashing the contract that had already been finalized by the ZPPA and given to Thales Air Systems of South Africa.
Commission chairman Sebastian Zulu has since recommended that the contract awarded dubiously awarded to Salex an Italian Company.
And President Michael Sata in commenting on the reports presented to him noted that they were too technical and directed the Secretary to the Cabinet to institute a technical committee that will prepare a cabinet memo to allow the government to study and come up with a decision on the matter.
Meanwhile President Sata has sworn-in Pastor Godfridah Sumaili, Dr. Steven Moyo and Irene Lamba as ACC commissioners and deputy Director General of the ACC respectively.
The president has also sworn-in veteran broadcaster Frank Mutubila as the Zambia’s ambassador to Italy while Ogeon Gondwe is the new senior private secretary for State house.
[QFM]
Labels: ERB, OIL, PROCUREMENT SYSTEMS, WYNTER KABIMBA, ZPPA
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Corrupt oil deals
By The Post
Wed 11 Apr. 2012, 13:30 CAT
WYNTER Kabimba, the chairman of the commission of inquiry into the Energy Regulation Board and oil procurement, yesterday disclosed that the government lost K2 trillion through corruption in the oil procurement process between 2007 and 2011. This is alarming! It is frightening! Imagine how many schools could have been built from this money! Imagine how many clinics could have been built from this amount of money! Imagine how many lives could have been saved by our doctors with this amount of money! Imagine how our road network would have been improved with this amount of money! Imagine how better equipped our police and other law enforcement agencies would have been with this type of money! The list is endless.
There are a lot of things we could have done with this amount of money. But greedy people, very selfish people misappropriated this money, stole this money.
Wynter says officers in the Ministry of Energy and Water Development, the Zambia Public Procurement Authority and the Energy Regulation Board were involved in this corruption. Wynter further revealed that some of the companies that were involved in this corruption have this year put in bids to supply the country with oil.
This is how callous they have become. Probably they think that everyone has a price and the new administrators of this country will also be put in their pockets. Probably they are also encouraged by the fact that the same people they were dealing with in the Ministry of Energy, at the Zambia Public Procurement Authority and the Energy Regulation Board are still there - they have not been moved, they have not been fired, they have not been arrested and are not being prosecuted.
So all is well and as it was before. Of course, a few people have changed - there is a new minister and a new permanent secretary. But the rest has remained much the same. And if things remain the same, more trillions of kwacha will continue to be lost in all procurement contracts.
These corrupt practices, as revealed by Wynter, have been going on for a long time - for over five years. But no one has been arrested. No one has been prosecuted. No one has been convicted and sent to jail. Why?
There is need for action - urgent action for that matter - on this front. The country cannot continue to lose such gigantic sums of money and hope to develop and be able to supply our people with the necessary services required in an organised community.
If the country continues to lose money in this way, Michael Sata's government will not be able to deliver on its promises to our people. This money is needed by government. And all those who were involved in this corruption, regardless of their social status, need to be brought to book, need to be made to account and give back to Caesar what belongs to Caesar.
And we agree with the observations made by Reuben Lifuka, president of Transparency International Zambia, that this government's fight against corruption will become a mockery if they went ahead to consider bids for the supply and delivery of oil products from companies associated with unethical business practices.
We cannot continue to give business to companies that are making this country lose such huge amounts of money through corruption. And moreover, as Michael used to repeatedly point out, Zambians are paying high fuel prices because of corruption. If corruption is stopped in the supply of oil, our fuel prices will certainly go down. And with it the prices of many things will reduce, improving the lives of our people, especially the poor, in so many ways.
This is where the biggest money is being stolen. And this is where the biggest fight against corruption should be initiated. The benefits have been gigantic to those involved in oil procurement corruption. So they will defend these huge benefits with everything they have. They will attempt to buy some weak souls so that they can continue to steal from the Zambian people.
It is clear that Michael wants this corruption to stop. But there is a limit to what this brother can directly do. He needs our help - the co-operation of every Zambian of goodwill - to fight this corruption. There is need for more action from Transparency International. We want them to continue talking. But they should combine their talk with action.
Michael has brought the fight against corruption in the open and is providing the opportunity for every Zambian of good will to join this fight. Let's not give excuses for failing to enlist in this crusade against corruption. Michael once remarked that "Lesa tapela kuminwe, apalamika fye". The fight against corruption has been brought to our door steps. Let's join it and fight without respite.
Of course, in every fight, leadership at all levels is needed. Michael is providing leadership at the political level. The Anti Corruption Commission and other law enforcement agencies need to provide efficient, effective and orderly leadership to the nation at the operational level.
The entire judicial process needs to be mobilised for this very important undertaking. If personnel need to be changed, let's change them. If money needs to be spent, let's spend it because any amount of money spent on fighting corruption will always be money well spent.
Corruption and other evils have to be fought regardless of the present case. It may appear that more money is being spent to fight corruption today than what is being recovered. The cost of fighting corruption cannot be measured in this way. This is so because today's expenditure on fighting corruption is not only about recovering what was stolen yesterday; it will have an impact, a positive bearing on tomorrow's corruption.
If we fight corruption well today and win, the benefits tomorrow will far outweigh whatever costs we may incur today because the benefits of living in an honest, transparent, just, fair and corruption free society endure for a very long time. Fight corruption today to save tomorrow's public funds!
Labels: CORRUPTION, MMD, OIL, PROCUREMENT SYSTEMS, REUBEN LIFUKA
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K2 trillion lost in corrupt oil procurement deals-Kabimba report
TIME PUBLISHED - Tuesday, April 10, 2012, 2:35 pm
The Commission of Inquiry constituted to investigate the operations of the Energy Regulation Board and the procurement of crude oil has revealed that from 2007 to 2011 the country lost about K2 trillion through acts of malpractices in the procurement system.
Commission chairperson Wynter Kabimba says the alleged corruption in the oil procurement system involved officials from the Zambia Public Procurement Authority (ZPPA) the Ministry of Energy and the ERB.
Mr. Kabimba noted that the commission also learnt that the companies that were allegedly corruptly engaged in the procurement oil have since bid again for a tender to supply fuel.
Mr. Kabimba has since recommended that the officers allegedly involved in corrupt activities be brought to book.
Another commission of inquiry tasked to investigate the installation of a Radar system at the Kenneth Kaunda Airport noted that the ministry of communication and transport interfered in the awarding of the contract by quashing the contract that had already been finalized by the ZPPA and given to Thales Air Systems of South Africa.
Commission chairman Sebastian Zulu has since recommended that the contract awarded dubiously awarded to Salex an Italian Company.
And President Michael Sata in commenting on the reports presented to him noted that they were too technical and directed the Secretary to the Cabinet to institute a technical committee that will prepare a cabinet memo to allow the government to study and come up with a decision on the matter.
Meanwhile President Sata has sworn-in Pastor Godfridah Sumaili, Dr. Steven Moyo and Irene Lamba as ACC commissioners and deputy Director General of the ACC respectively.
The president has also sworn-in veteran broadcaster Frank Mutubila as the Zambia’s ambassador to Italy while Ogeon Gondwe is the new senior private secretary for State house.
[QFM]
Labels: CORRUPTION, OIL, PROCUREMENT SYSTEMS, WYNTER KABIMBA
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Zambia needs strong systems to fight corruption - Unzasu
By Abigail Sitenge
Tue 14 Feb. 2012, 13:01 CAT
THE government should strengthen systems that have allowed corruption to thrive in the country, advises University of Zambia Students Union president Vincent Chaile. In an interview, Chaile, however, urged the government to embrace other important issues affecting citizens besides fighting corruption for the country to progress.
"The fight against corruption shouldn't be the main thing of the current government because it consumes a lot of money. The high levels of corruption in Zambia are due to lack of a strong system in place, so the best way to fight corruption is to strengthen the system. A strong system of collecting money for example, people steal because the system is porous," Chaile observed.
He said corruption is a complicated crime and affects other sectors of the economy.
"…Only lawyers benefit, they will be getting rich and rich so what about the poor? In as much as they fight corruption, let the fight (against) corruption be a continuous thing and not the main thing of the PF because like we learnt from the (Levy) Mwanawasa government, it spent a lot of money fighting corruption than what they had recovered," he said.
Meanwhile, Chaile said it was not possible to judge the PF government in 90 days because development is a process.
"We will judge President (Michael) Sata and the PF government in a period of five years, you know a policy takes time to mature, it's not a one day thing where today it is implemented and after six months you see results. We can't expect development overnight because maybe the first five years will be policy formulation and the next term for implementation. I think we will cheat ourselves to judge them within 90 days because those are just mere politics," he said.
Chaile further asked the government to come up with a deliberate policy to build more infrastructure, as it is the only way the government will create jobs.
He observed that improving the road network would create jobs, saying most developed countries have fought unemployment through such measures.
"Let the government build more infrastructure such as schools and improve the road network. I am sure that way, millions of Zambians will be employed," he observed.
Chaile said UNZA had produced thousands of graduates who were still languishing on the streets due to lack of jobs in the country.
Labels: PROCUREMENT SYSTEMS, UNZASU
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TIZ urges sealing of loopholes in government procurement
By Bright Mukwasa
Mon 13 Feb. 2012, 12:59 CAT
THE current legal and regulatory procurement frameworks are not inadequate to promote transparency and accountability in the procurement process, says TIZ.
Appearing before a parliamentary committee on legal affairs, governance, human rights and gender matters and child affairs last week, Transparency International Zambia executive director Goodwell Lungu, represented by his good governance programmes officer Francis Mwale, said the current legal and regulatory frameworks were not properly enforced.
"The Public Procurement law and the Budget and Finance Act of the government of Zambia require that procurement plans and contract award information is published in public media in the interest of fiscal transparency and accountability. However, information on contract and awards are not in the public domain," Lungu said.
"Access to contract information by stakeholders such as CSOs (civil society organisations) involved in contract monitoring is limited.
Partly this is due to poor disclosure and dissemination of relevant contract details which is compounded by the lack of an access to information Act so as to allow stakeholders to access relevant materials on procurement contracts and works."
Lungu said there was need for the access to information law to help monitoring contract performance.
He said the agreements signed between the companies and individuals with the government tended to give companies incentives to default the contract because they were done in secrecy and that was what had caused increased levels of the misappropriation of funds and corruption in the procurement process over the past years.
Lungu also said there was need to tighten the loopholes in the public expenditure management system which caused government to lose huge sums of money through leakages.
Labels: PROCUREMENT SYSTEMS, TIZ, TRANSPARANCY
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Government should work within the law regarding procurement - Mutesa
By Kombe Chimpinde
Thu 01 Dec. 2011, 13:59 CAT
THE PF government should work within the framework of the law regarding issues of procurement, says Dr Fred Mutesa.
Commenting on Transparency International Zambia's (TIZ) advice to President Michael Sata that State House should have absolutely nothing to do with public procurement, Dr Mutesa, in an interview, said the current government must learn from the mistakes of the previous administration when conducting government business especially regarding procurement of various works and services.
"It goes without saying that a wise man learns from a mistake of others, so you do not have to fall in the same ditch that someone else fell into.
It's important that the new government adheres to the rule of law and recognizes or works within the framework or perimeters of the law," he said.
"Otherwise tomorrow it will be them being called to answer. It is important that this country is put back on track with regards to the rule of law. That is something that needs not to be over emphasized."
Dr Mutesa said it was vital for civil servants to reject orders which translated into abuse of office by their superiors.
"The Nuremberg trials of Nazi war criminals, people kept saying they were just acting on orders but wrong orders must be disobeyed. We need public servants who can act out of conviction of work, work with their conscience. If you act on wrong instructions you are an accomplice," he warned.
"It is better to face the sack than carry out unlawful instructions."
And Dr Mutesa said those appearing before various inquiries for questioning for the role they played in various deals must be quick to point
out those that instructed them to do so.
"It is important to be specific as to who gave instructions. If they make general references, it does not help point out who was responsible for issuing instructions," said Dr Mtesa.
TIZ president Reuben Lifuka last week said the government should have a complete overhaul of the public procurement system.
"We want to take this opportunity to urge the PF government to have a complete overhaul of the public procurement system which was definitely severely compromised by the MMD government," said Lifuka.
"We want to urge President Sata and his Cabinet and ensure that public procurement is handled by the competent bodies. State House should have absolutely nothing to do with procurement of services."
Labels: FRED MUTESA, MICHAEL SATA, PROCUREMENT SYSTEMS, REUBEN LIFUKA, TIZ
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Kamanga demands transparency in fuel procurement
By Chiwoyu Sinyangwe
Mon 10 Oct. 2011, 08:40 CAT
THE PF government needs to deal with transparency in fuel procurement as it streamlines and reviews the value chain to reduce the price of oil in the country, says energy consultant Andrew Kamanga.
On Friday, energy minister Chris Yaluma announced that government had reduced the price of petrol by 5.7 per cent to K8,155 per litre, diesel by 4.9 per cent to K7,566 and kerosene by 8.6 per cent to K5,641. Yaluma said "I also wish to inform the public that the streamlining of the fuel price is ongoing and where necessary further changes will be effected in future."
Commenting on the development, Kamanga said there was need for total review of the fuel cost chain in the country to establish a long-term and sustainable fuel pricing structure which would benefit individual Zambians and industries.
To achieve the average 6.4 per cent reduction in fuel prices, the government abolished the K65 per litre Strategic Reserve Fund.
"It is a welcome initiative but we hope that in the long-run, there will be a total solution and the total solution requires the review of all the taxes because this is just one tax that has come out," said Kamanga who is also ENFIN Solutions managing consultant. "There is still need to review the whole taxation on fuel pricing so that we see how that impacts on the final price to the consumer."
He also said the fees charged by Indeni Petroleum Refinery and Tanzania Zambia Mafuta pipeline (TAZAMA) also needed to be reviewed to see their impact in the final pump price of fuel.
Kamanga said reduction in fuel price was expected to have a positive impact on the economy.
"You need to take a holistic view to say where else can we adjust or remove the taxes so that we are able to address the final price to the consumer because at the end of the day, the same price of fuel is having an impact on other commodities like the cost of transportation," he said. "So, we expect that with the reduction in the price of diesel, we should be seeing the price of transport going down whether that will happen is something we wait to see."
Kamanga said there was need to have transparency in the manner the government was to be procuring fuel to reduce the transaction costs and ensure stability of supply.
He said it was not clear how the fuel procurement in the country was being done.
"We need to deal with the underlying fundamental issue which is the procurement of oil," Kamanga said. "We need to have transparent and long-term contracts and you reduce the element of having these continuous adjustments in price. In the past we have had Zambia National Oil Company which has been liquidated, now the procurement we are not sure how it is being structured so, again those are areas where if there are efficiencies in the way procurement is being managed, we should be able to pass on those benefits to the end user."
Kamanga said the onus was on the PF government to ensure there was transparency in the way the country bought its fuel.
"We are looking at it from outside but those who have the opportunity to look at those things in detail, I think those are the areas they should go and look at," said Kamanga. "Look at the procurement as one element, look at transportation on TAZAMA as one element. Look at the cost of refining at Indeni, and then over and above that, look at the additional taxes that are thrown in there. It is the question of streamlining the whole chain from start to finish and then ultimately review what the final impact is going to be."
Labels: ANDREW KAMANGA, FUEL, INDENI, PROCUREMENT SYSTEMS, TAZAMA
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Probe NCC microphones procurement, Kabanda urges DEC
By Moses Kuwema
Thu 06 Oct. 2011, 14:00 CAT
THE Citizens Forum has written to the Anti Money Laundering unit of the Drug Enforcement Commission and the Anti-Corruption Commission to investigate the procurement of microphones by the National Constitution Conference (NCC) secretariat in April 2010.
Citizens Forum executive secretary Simon Kabanda (right) stated that the procurement of the microphones at a time when the NCC was winding up its business and the amount of money involved raised a lot of questions. He wondered why the NCC secretariat decided to spend K1.8 billion at a time when it was concluding its work.
"Were these microphones a necessity for the NCC or merely a luxury? If they were a necessity, why were they not procured in 2007 when the NCC began its sittings? Why did these microphones not come in their original boxes? Were they new microphones or they were second hand whose prices had been inflated to the prices of new ones?" Kabanda wrote.
He stated that the NCC chairperson, Chifumu Banda, observed that the old public address system that was being used by NCC worked much better than the newly-acquired one and wondered if it made sense to discard something good and efficient and replace it with an ineffective and problematic one.
"The supplier did not provide the right card to install in a computer for programming the public address system and this led to the failure to use the computer which came with the microphones. Why did the supplier not provide the right card to install in the computer?" he asked.
Kabanda stated that while only four loud speakers were mounted in the conference hall, up to 16 speakers may have been procured and wondered why the NCC procured more speakers and used only four.
"Where did the rest go to? All the above questions raised suspicions that this colossal amount of money may have just been laundered. Now that the NCC is no more, we wish to know where the PA system with all the microphones and the computer are, and what they are being used for. To this effect, we are requesting that you investigate this issue to establish the facts surrounding this questionable transaction. We would appreciate if you could communicate to us the findings of your investigations and make them public as this is an issue of national interest," stated Kabanda.
Labels: CORRUPTION, PROCUREMENT SYSTEMS, SIMON KABANDA
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Probe NCC microphones procurement, Kabanda urges DEC
By Moses Kuwema
Thu 06 Oct. 2011, 14:00 CAT
THE Citizens Forum has written to the Anti Money Laundering unit of the Drug Enforcement Commission and the Anti-Corruption Commission to investigate the procurement of microphones by the National Constitution Conference (NCC) secretariat in April 2010.
Citizens Forum executive secretary Simon Kabanda (right) stated that the procurement of the microphones at a time when the NCC was winding up its business and the amount of money involved raised a lot of questions. He wondered why the NCC secretariat decided to spend K1.8 billion at a time when it was concluding its work.
"Were these microphones a necessity for the NCC or merely a luxury? If they were a necessity, why were they not procured in 2007 when the NCC began its sittings? Why did these microphones not come in their original boxes? Were they new microphones or they were second hand whose prices had been inflated to the prices of new ones?" Kabanda wrote.
He stated that the NCC chairperson, Chifumu Banda, observed that the old public address system that was being used by NCC worked much better than the newly-acquired one and wondered if it made sense to discard something good and efficient and replace it with an ineffective and problematic one.
"The supplier did not provide the right card to install in a computer for programming the public address system and this led to the failure to use the computer which came with the microphones. Why did the supplier not provide the right card to install in the computer?" he asked.
Kabanda stated that while only four loud speakers were mounted in the conference hall, up to 16 speakers may have been procured and wondered why the NCC procured more speakers and used only four.
"Where did the rest go to? All the above questions raised suspicions that this colossal amount of money may have just been laundered. Now that the NCC is no more, we wish to know where the PA system with all the microphones and the computer are, and what they are being used for. To this effect, we are requesting that you investigate this issue to establish the facts surrounding this questionable transaction. We would appreciate if you could communicate to us the findings of your investigations and make them public as this is an issue of national interest," stated Kabanda.
Labels: CITIZENS FORUM, CORRUPTION, PROCUREMENT SYSTEMS, SIMON KABANDA
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TIZ urges government to take public concerns about Judiciary seriously
By Patson Chilemba
Thu 06 Oct. 2011, 14:00 CAT
SEBASTIAN Zulu and the PF government should take public concerns about the operations of the judiciary and perceptions of corruption very seriously, says TIZ.
Reacting to the justice minister Zulu's remarks in the state-owned newspapers, Times of Zambia and Zambia Daily Mail of yesterday, that some media houses - in apparent reference to The Post - should not insinuate wholesale corruption in the judiciary when it cannot substantiate its claims, Transparency International Zambia (TIZ) president Reuben Lifuka argued that it was not true that the media had deliberately insinuated that the entire judiciary was corrupt.
"Transparency International Zambia would like to counsel the new Minister of Justice and the PF government to take public concerns about the operations of the Judiciary and the perceptions of corruption very seriously," Lifuka stated.
"We find the statement by the Minister to be extravagant as it is not true that the media have deliberately insinuated that the entire judiciary is corrupt.
It is also wrong for the minister to portray an image that there are no challenges of corrupt judicial officers in Zambia. The fight against corruption in Zambia has greatly benefitted from the work of the media - particularly the private media."
Lifuka, who is also the managing consultant for Dialogue Africa stated that the PF itself, when it was in opposition, championed the same causes as the media that it had now already chosen to disparage.
He wondered why the change all of a sudden.
"It is a matter of public record that there were a number of statements from various PF leaders, on the acquittal of some high-profile persons charged with corruption.
It is necessary, in our view, for the new government to take time and study the various challenges before making policy pronouncements," Lifuka stated. "We want to advise the minister to focus on initiating judicial reforms which will be holistic and make our judiciary truly independent. Judicial officers should be given the latitude to make decisions free from any form of interference."
Lifuka stated that the independence of the judiciary was crucial for its own effectiveness, adding that Zambia needed a fair judiciary which was also subject to mechanisms that held it accountable to the people.
"We need a legal culture that upholds the independence, impartiality and integrity of the judiciary," stated Lifuka.
Zulu was quoted in the state-owned newspapers as having said the government had noted with disapproval that some media houses had taken it upon themselves to insinuate that the entire judiciary was corrupt and that they should give reasons behind the acquittal of certain individuals.
He stated that some media houses had also misled the public that adjudicators acted on instructions from some authorities to decide in a particular way.
Zulu further said it had been suggested by some media houses that judicial officers could be arrested and prosecuted for what were perceived as wrong judgments.
He said the position of government was that in terms of the law, no judicial officer could be arrested or prosecuted for delivering what could be perceived as a wrong judgment.
"It should be noted that judges do not dialogue with third parties regarding the content or basis of their judgments. The judgments speak for themselves," said Zulu.
He said the Zambian government was a signatory to the Commonwealth Bangalore Principles which ensured judicial independence, impartiality, integrity, propriety, equity of all before courts, competence and diligence of judicial officers.
Zulu said the principles alluded to were of critical necessity to constitutional governance and were enshrined in the Republican Constitution and the Judicial Code of Conduct.
Labels: PROCUREMENT SYSTEMS, REUBEN LIFUKA, TIZ
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Mines boss urges local procurement
by
02/12/2010 00:00:00
THE president of Zimbabwe’s Chamber of Mines, Victor Gapare, has called miners to buy products and services from local companies. Gapare said such a policy could develop the country’s economy and lead to lower prices for both buyers and suppliers.
“Encouraging local procurement is important for economic growth and the creation of jobs and employment,” he said. “But it makes commercial sense to source locally because this reduces the lead time required when sourcing goods.
“A miner will not have to keep three or six months‚ stock in his stores if he knows the local supplier can supply within a shorter time period, therefore reducing working capital tied up in stores and spares. As local suppliers improve their efficiencies and quality, costs are bound to come down,” he said.
The Chamber of Mines estimates that expenditure on local procurement will increase from US$150 million in 2009 to US$300 million in 2010, as the local economy begins to grow.
“We are also encouraging mining companies to work with local suppliers and help them achieve the quality and cost competitiveness required,” said Gapare. “This used to happen in the days before the collapse of the local supply industry so it is not a new issue.”
Otis Rumumba, purchasing manager at Hwange Colliery Company, said that around 90 per cent of his company’s products and services were already sourced locally. “The other 10 per cent consists of specialised mining machinery and spares with no local distributors,” he said.
“We also import when the landed price of imports is cheaper, especially when the difference is significant.”
Local suppliers could also perform better than more established companies, which tended to be more rigid and have less understanding of customer requirements, he added.
Nyasha Chizu, CIPS Zimbabwe branch chair, said a long-term solution would be to encourage equipment manufacturers from overseas to invest in facilities within Zimbabwe.
“If the technology is imported and local products from mining are used in these plants, prices for equipment will inevitably reduce,” he said.
Labels: MINING, PROCUREMENT SYSTEMS
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Paying for non-delivered goods and services
By The Post
Sat 03 July 2010, 11:00 CAT
Our attitude towards public property and resources must change.
There is need for increased respect for that which belongs to the public at large, for public property and resources. We know that it is said “fya boma”, “niva boma” but this doesn’t mean that public property and resources have no owner. There is an owner and the owner is all who constitute what we are calling boma. What we are calling boma is all of us – boma ndise; ubuteko nifwe; muso kiluna, to borrow from a few of our languages.
When one abuses, misuses or steals public property or resources, we should all be moved with indignation whenever or wherever that happens. We have heard some people defend their misuse, abuse or stealing of public property or resources by telling those who try to confront them: “Wilafikosha kwati fyobe, niva boma.”
This attitude is wrong and dangerous because it has the potential of destroying our country and of totally halting our progress as a nation. We say this because to develop, a country has to be efficient in its utilisation of resources.
To make Zambia rich and strong needs intense effort, which should include, among other things, the effort to practice strict economy and combat waste, that is the policy of building up our country through diligence and frugality.
And the principle of diligence and frugality should be observed in everything. We must pay special attention to the economy and avoid indulging in wastefulness. Thrift should be the guiding principle in our government expenditure. It should be made clear to all our people, especially those who work for the government, that corruption and waste are very great crimes.
And one area that needs special attention is government procurements. This is one of the areas most prone to corruption. And corruption in procurement affects the efficiency of public spending not only of the money contributed by our taxpayers but also donations from donors.
This ultimately affects the quality of services provided by the government such as education and health care and the opportunities they present to improve quality of life. We also know that corruption in procurements also harms companies that produce goods and services as it increases operation costs, reduces competitiveness and, in the medium term, is not good for business.
Every year, government spends huge amounts of money paying suppliers who have not supplied any goods or services to the government. Every year, taxpayers’ money is used to pay contractors who have been contracted to do up some roads or build some public infrastructure which they have not built. Sometimes public funds are used to pay consultants who have not delivered. This is corruption; this is theft of public funds by all those involved.
But it happens every day and people get away with it and impunity seems to be the order of the day. What we are saying is backed by the findings of the Drug Enforcement Commission that over half of the suppliers seeking payment from the government have not supplied anything. But this is not new.
This is the way we have been operating as a country. People have become rich from supplying nothing but invoices to government. They get paid for supplying nothing. How is this possible? This is only possible through connivance, collusion with those in charge of government resources.
Those administering public resources connive with their friends to rob the people and share the spoils. This collusion became very clear in the case of Frederick Chiluba and his tandem of thieves where government officials were in collusion with individuals from the private sector like Faustin Kabwe and Aaron Chungu and their lawyers to steal public funds. What these did might have been at a grand scale but the same is happening at all levels of government.
And where goods and services are actually supplied to the government, this is usually at highly inflated prices and with the lowest quality of goods and services being supplied. A job that should normally cost an individual K1 million may cost the government K100 million or more. The government is a bulk buyer and should as such be getting huge discounts, but what does it get?
Over-priced goods and services. Why? Is it because those who are tasked with the duties of purchasing don’t know what they are doing? No. They know what they are doing and are very competent people. Theirs is not a case of oversight because it is deliberate. This is so because it benefits them personally; it gives them an opportunity to enrich themselves at the expense of the people – or rather niva boma.
There is need to rationalise government procurements. It is difficult to understand how the same government is paying so many different prices for the same stationery. Every ministry, and sometimes every department or unit, procures its own stationery from its own source – a source that is connected to those running the unit or are in charge of procurements.
And a different price is paid to every different supplier for every ministry or department. And no questions are asked why department X pays more for a ream of paper than department Y when both of them are financed by the same treasury.
It is the same when it comes to the purchase of automobiles and procurement of other goods and services. Is this really the best way to conduct public business? Is a rational approach possible? Surely, there must be more sensible alternatives to this madness. This is tolerated because it benefits those involved in it – as the saying goes, epo balila; nipamene badyela.
And because of this, it is very difficult to stop it. The situation is also compounded by the fact that even the top leadership of government is sometimes caught in this web. If Chiluba and his entire Ministry of Finance were misusing, abusing, misapplying and stealing public funds, what moral authority could they have to correct that at the lower ranks of government?
Sometimes the suppliers of goods and services to the government are people who have paid commissions, bribes to the controlling officers and others involved in securing such goods and services. How can they get a supplier who has already paid them a bribe to account for failure to deliver when they have already gotten their share of the loot?
Clearly, most of the services our people today are going without is as a result of corruption in the government procurement system. And until this twisted system is straightened, we will continue to have very expensive poor roads and other infrastructure.
We will continue to pay more for nothing. And instead of going forward and making progress, we will be marching backwards in very long strides. Therefore, there is need for us to pay a lot of attention to government procurements. Government contracts should not become a way of rewarding ruling party cadres and other supporters.
Today, we have many ruling party cadres who have been paid government money but have failed to deliver on their obligations and nothing has been done to them. This is not a recipe for governing well; it is a recipe for anarchy and deepening corruption whose consequences we all know very well.
Labels: CORRUPTION, PROCUREMENT SYSTEMS
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