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Procurement profession: Need to respect and abide by regulations
2008-02-21 10:04:29
By Chris Joe
In the first part of this feature the author, Anastory Kamihanda discussed the origins of competitive bidding and how the Public Procurement Act of 2001 was amended and resulted into the Public Procurement Act of 2004 in a bid to establish some discipline in the whole process of public procurement.
In this second and final part the author emphasises the need to respect and abide by procurement regulations as stipulated in the Public Procurement Act,2004 so as to avoid a repeat of the Richmond case.
The main idea is to unite institutions responsible for public procurement under one ministry.
This is an important step of message, attitude and spirit on the part of the government towards the importance of professional procurement in the country. And this is more important than even related knowledge and skills.
In this way, it will have less significance where government procurement personnel are ultimately reporting. Management reporting on procurement activities shall bring government procurement under control.
The PPRA are not supposed to be an auditor on government procurement operations. Such auditors already exist in the Stock Verification Directorate of the Ministry of Planning and Finance.
The role of procurement agents
Dr Harrison Mwakyembe`s committee performed exceptionally well when they touched on procurement agents. Procurement agents are the main avenue used by unprofessional government buyers to over- invoice purchases.
The report estimated that through agents prices are hiked by ``two times or more``. Procurement agents have no adequate long-term interest in the survival of the institution they are buying for. They are therefore easy to co-opt in over-invoicing.
The government has been promoting “private sector participation`` or “public sector-private sector partnership``, in several activities including government procurement.
In procurement this refers to the employment of procurement agents. It is also called “outsourcing” in procurement organizing.
Although the PPRA in their paper already cited above stipulate that outsourcing is on all purchases that are not ``confidential``, the outsourcing criterion is quite different.
Identification of purchases to supply through procurement agents is based on the performance objectives of an institution.
Using research findings on one leading university in the country, we have already advised the government on how to optimally identify products and services for supply through procurement agents.
We hope they shall do justice to science and Tanzanians to take heed.
``Good Government and Good Purchasing are Found Together`` (American State and Local Purchasing: a Digest; Lexington, 1994).
In his contribution to a column of the tabloid ``Rai``, Neophiltius Kyaruzi used a graphic language when he titled his article ``Manunuzi Yatoboa Fuko la Serikali``. He was not exaggerating.
The United Republic National Assembly has literally been singing of 80% government spending is on procurement. Government and the nation at large will not survive a Cinderella on professional government procurement.
The local governments are particularly in disarray. The remarks by Stephen Wasira cited earlier were in reference to a local government.
It is frustrating that when the NBMM struggled to entrench professional procurement in the country, they received more cooperation from the private sector than they did from government departments! (Dr Clemence Tesha, the NBMM, Dar es Salaam) And the NBMM was enforcing the law drafted and signed by the government.
Eventually, it has been an unraveling indeed; taking in its sweep a sitting Prime Minister, two full ministers immediately, and subsequently, the entire cabinet!
Hope lies only in installing professional government procurement. That is, it lies in the root of the Richmond crisis.
Government procurement should be functional and first line. Government respecting its own procurement law which already exists.
On the other hand, remembering the experience of the USA government at the beginning of this narration, and as further supported by Hon. Joseph Butiku, we can only wish our President all the best!
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