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New law attempts to curb corruption in the procurement process
2005-07-17 08:51:32
By Michael Haonga
Question: As an expert can you tell us something about public procurement?
Answer: Procurement is a profession which is governed by codes of conduct for its professionals and practitioners and their institutions.
It follows therefore that the National Board of Materials Management (NBMM) of Tanzania, the Chartered Institute of Purchasing and Supply (CIPS) of the United Kingdom and the National Association of Purchasing Managers (NAPMA) of the United States of America have codes for their professionals on wide-ranging aspects associated with procurement technicalities.
Q: In light of the above elaboration, could you point out some of the basic responsibilities of a procurement professional?
A: One of the basic responsibilities of a procurement professional is to contribute positively to the achievement of corporate objectives.
If the corporate objective of a given organization is to make profit, the procurement professional is expected to contribute positively by procuring goods and services competitively and wisely.
For instance NAPM code of conduct on responsibilities to the employer specifies that “Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and only the authority granted.”
The procurement professional is required to put the interest of his employer first.
In the case of conflict of interest, he is required to declare his interest, resign or withdraw from membership of the professional institution to which he belongs.
Regarding conflict of interest, the NAPM’s Code of Conduct has it that “Refrain from any private business or professional activity that would create conflict between personal interests and the interest of the employer.”
Q: How does this relate to the Public Procurement Act 2004?
A: Section 73 (5) of the Public Procurement Act, regarding declaration of interest specifies that;
“Any member of an approving authority or a member of its staff or procuring entity shall declare any interest that may have in any supplier, contractor or consultant, and shall take no part, nor seek to influence in any way procurement proceedings in which the supplier, contractor or consultant is involved.
It goes on to note that “Any person who fails to comply with provisions of this Regulation commits an offence and shall be liable to the provision of section 76 of the Act unless he proves that he did not know that the contract or proposal or other matter in which he had pecuniary interest was the subject of consideration at the meeting.”
Q:What does the 2004 Act say about responsibility to suppliers?
A: Section 43 of the Act states that “In the execution of their duties tender boards and procuring entities shall strive to achieve the highest standards of equity taking into account three factors namely a) Equity of opportunity to all prospective suppliers, contractors or consultants, b) fairness of treatment to all parties, and c) the need to obtain the best value for money in terms of price, quality and delivery having regard to set specifications and criteria.”
Q:What does the 2004 Act say about fair treatment to eligible prospective suppliers?
A: Section 79 of the Regulation states that “A procuring entity wishing to commence competitive tendering shall provide all eligible prospective suppliers, contractors, service providers or asset buyers with timely and adequate notification of procuring entity’s requirements and an equal opportunity to tender for the required goods works or services or for assets to be disposed of,”
Q: What is in place within the National Board of Materials Management (NBMM)’s and NAPM’s codes of conduct against corruption as well as in the 2004 Act, given that in Kenya for instance the Kenya Local Government Permanent Secretary, Z.Ogongo is on record as having recently remarked that “ The devil lies in Government procurement and unless the issue is faced head-on, all efforts to fight corruption would be limited?
A: NBMM’s Article 7 on Code of conduct requires its professionals not to accept offers as they tend to influence their decisions.
In line with the NBMM’s Code of Conduct, the NAPM’s Code stipulates that;Refrain from soliciting or accepting money, loans, credits or prejudicial discounts and the acceptance of gifts, entertainment, favours or services from present or potential suppliers that may influence or appear to influence, purchasing decisions.”
In the same vein Section 73 (2) of the new 2004 Act is against gratuity and specifically states that :
“No procurement entity, member of an approving authority, any public officer or other government authority shall accept a gratuity in any form, any offer of employment or any other thing, service or value as an inducement with respect to an act or decision of, or procedure followed by, the procuring entity shall promptly reject a tender of any supplier, contractor or consultant who gives, agrees to give or offers, directly or indirectly, any such inducement”.
Q: Given that having the right information is tantamount to having power on the issue involved, what matters are procurement professionals and members of procuring entities supposed to treat as confidential?
A: Information and data which have to be treated as confidential include prices and costs data, tender or quotations information, formulas and process information, design information (drawings and blue prints), and company plans goals and strategies.
Others include personal information about employers or trustees, supply sources and supplier information, tender evaluation reports and computer software programmes .
The NBMM Code also states that “Registered supplies officer and stock verifier shall not disclose information acquired in the course of his professional engagement to any person other than as required by law for the time being in force.”
NAPM also specifies in its Code that “Handle confidential or propriety information belonging to employers or suppliers with due care and proper consideration of ethical ramifications and government regulations.”
The 2004 Act also is very clear on this as it states in Section 42(1) that “Every person having official duty or being employed in the administration of this Act or engaged as a consultant to the procuring entity shall consider and deal with all documents and information relating to the functions of the procuring entity as confidential.”
Q:Any concluding remarks?
A:There is no doubt that the procurement profession requires people of very high integrity, since over 50 percent of the hard earned money from tax payers used by the government to meet its obligations, is spent by the procurement units to purchase goods and services hence the need for procurement entities to adhere to Sections 72 to 76 of the Public Procurement Act and its regulations.
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