OPC unit under Parliament microscope

Chairperson of Parliament’s Budget and Finance Committee, Francis Kasaila, has hinted that his committee will discuss the origins and operation of the Malawi Government Contract Negotiating Unit (MGCNU).

Established in 2012 as an internal procurement arm within the Office of the President and Cabinet, MGCNU is seen as taking over the mandate of the Office of the Director of Public Procurement (ODPP) and slides Malawi back to a centralised regime that donors said was prone to corruption back in 2004.

In an interview, Kasaila, who also worried that the Executive never consult relevant committees of Parliament on such matters, suggested that MGCNU and ODPP functions are somewhat similar.

“To my knowledge, there were no consultations in as far as establishment of this office was concerned. In most cases, the Executive would do whatever it wishes to do. They find it very difficult to consult for their own reasons,” he said.

Added Kasaila: “When we get a chance to meet next time, this is something we need to look into and learn more on how they are working in relation to other departments established by law.”

The unit, according to an OPC circular of October 2012, was established with the mandate over “all contracts, including construction, provision or supply of goods and services, concessions and all such agreements that place an obligation on the Malawi Government or have an impact on the resources and endowment of Malawi.”

The circular said MGCNU would also be responsible for reviewing, considering, vetting, negotiating and passing contractual proposals before they are concluded and agreed between the Malawi Government and other parties and stakeholders.

But the ODPP in its 2012 position paper said this unit is illegal as it contradicts Section 4, of the Public Procurement Act.

The section provides that, the ODPP is the only office given the mandate to regulate, oversee and monitor all public procurement activities.

The OPC by establishing MGNCU argued that it was to achieve value for money, but ODPP countered that saying “the unit cannot achieve value for money through negotiations.”

But government spokesperson and Minister of Information and Civic Education Brown Mpinganjira defended the establishment, arguing it is within government’s constitutional powers.

Mpinganjira said there is no politics or conflict in the two offices because “the government has the constitutional mandate to set up structures when government deems it needful for the smooth running of its affairs.”