Minister of Defence Feston Kaupa has called for stronger accountability in procurement, saying the function manages more than 75 percent of the national budget at a time procurement and contract management account for over half of cases registered by the Anti-Corruption Bureau (ACB).
The minister said at the Malawi Institute of Procurement and Supply (Mips) Annual Lakeshore Conference in Mangochi on Wednesday evening, that the the figures demonstrate the need to ensure that public resources channelled through procurement are managed with integrity and accountability.
Kaupa, a former Mips chief executive officer, said the ACB data should not be viewed as a condemnation of the procurement profession, but as a reason to strengthen professional capacity, ethics, oversight and accountability across the procurement chain.
He said: “If procurement represents more than three-quarters of the national budget, then weaknesses in procurement can have consequences on an enormous scale.
established procedures. | Grace Phiri
“Procurement professionals must follow established procedures and guard against manipulation of specifications, improper interference with evaluations, unauthorised approvals and other practices that can undermine the process.”
Kaupa also said procurement is a strategic economic function that determines how public resources are converted into infrastructure, medicines, agricultural inputs, equipment and other goods and services.
Mips chief executive officer Amos Nyambo said accountability in procurement involves more than procurement officers because user departments and payment functions are also part of the process.
He said the introduction of the Malawi National Electronic Procurement System can improve the speed, transparency and traceability of procurement transactions.
Meanwhile, Nyambo said about 25 percent of procurement now goes to indigenous businesses, reflecting efforts to increase the participation of local enterprises in public procurement.
The progress comes amid concerns from indigenous black Malawian businesses that they are yet to fully benefit from the 60:40 procurement provision, which requires 60 percent of national competitive bidding contracts to go to indigenous black Malawians and 40 percent to others.
Section 44 (10) of the Public Procurement and Disposal of Assets Act provides for the 60:40 preferential arrangement for indigenous black Malawian businesses.
The Mips annual general meeting and conference, running from September 30 to October 2 at Sunbird Nkopola Lodge in Mangochi, is being held under the theme ‘Multi-stakeholder dialogue: Driving supply chain management performance through sustainable digital transformation.
