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VP Mnangagwa

Kudzanai Sharara in Nyanga
Efficient public procurement systems will lead to increased industrial development through increased economies of scale and attract new investors into the country, Vice President Emmerson Mnangagwa has said. In a speech read on his behalf by the Minister of ICT Telecommunications and Courier Services Supa Mandiwanzira at the CIPS Zimbabwe 2017 annual conference in Troutbeck Resort yesterday, VP Mnangagwa said public procurement ensures efficient operation of government departments, parastatals and local authorities.

“Moreover, efficient public procurement promotes infrastructural development allowing government to deliver quality infrastructure in services such as water and electricity supply, and sanitation and housing. VP Mnangagwa said efficient public procurement would undoubtedly lead to increased industrial development through increased effiencies and attract new investors into the country, thereby enhancing the quality of life of citizens.

“Because public procurement accounts for significant amount of Government expenditure, with substantial individual transactions in some cases, it is Government’s responsibility to ensure such spend is properly accounted for, and that the resources have been utilised in most efficient and transparent manner, for the country’s benefit,” he said.

“With regards to public procurement in Zimbabwe, there have been a number of adverse reports by the Auditor General on failure to adhere to laid down procurement procedures in some instances, impacting the implementation of Government projects and programmes and reducing returns of tax payers’ money. Most of these problems have also been linked with the bureaucratic and inefficient procurement processes and excessive authority of the State Procurement Board (SPB). It is for this reason that Government has done away with the Procurement Act (22:14) of 2002 as a way of dealing with weak and outdated procurement procedures that lacked accountability and transparency.” VP Mnangagwa also touched on corruption saying it is the most cancerous disease affecting business-transactions both in government and public sector.

“To the procurement practitioners, therefore I exhort you to always update, benchmark, and standardise your procurement procedures to make sure they remain relevant to time and environment that you operate in. The use of standard procurement procedures followed by close audits helps in monitoring and ensuring that supplies are procured from ethical, value-adding sources that have a good reputation.

“As Government, we have taken radical measures to correct and stop this malpractice by introducing the new Public Procurement Reform Programme through the Public Procurement and Disposal of Public Assets Bill 2017. In this new dispensation, everyone is expected to comply with standards,” said VP Mnangagwa. VP Mnangagwa said procurement activities enable institutions to meet their strategic objectives in an economic, efficient and effective manner.

“Moreover, it has been shown that, in private sector organisations, non-pay expenditure ranges between 30 to 40 percent of total expenditure, with a 5 percent reduction in raw material costs said to increase profits by up to 40 percent. Government therefore believes that procurement can contribute to the social and economic development of the country. Moreover, procurement, when supported with relevant policies such as Local Content Policy, can be strategic, and enterprises, supporting local growth and job creation.” VP Mnangagwa said: “Furthermore, prudent procurement and associates policies, through price stabilisation; drives economic growth, lowers inflation rates and eliminates market price distortions.”