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Strengthening procurement communication: A call for better governance in Zambia by Edgar Chibuta

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I wish to extend my heartfelt gratitude to the widely respected Zambia Monitor for the coverage they provided on my discussions about procurement in Zambia.

This opportunity is truly invaluable, and I commend the tabloid’s management for granting me this rare platform. The publication underscored the critical need for professionals in procurement to become better communicators, particularly regarding issues impacting their field.

Since the unfortunate Enron scandal, which led to the downfall of the Houston, Texas-based energy trading company and its subsequent bankruptcy filing in December 2001, Zambia has made significant strides in promoting corporate governance.

This momentum was further bolstered during the leadership of Misheck Kaoma, Daniel Kabamba, and Chibwe Mwelwa at the helm of the Zambia Institute of Purchasing and Supply (ZIPS).

To provide informed commentary on the headlines surrounding the procurement of goods, works, and services in Zambia, I encourage stakeholders to delve into the Public Procurement Act (PPA) of 2020, the Public Procurement Regulation of 2023, and any circulars issued by the Zambia Public Procurement Authority (ZPPA).

Unfortunately, the reading culture in Zambia has declined, exacerbated by widespread plagiarism within academic circles.

Unlike the Zambia National Tender Board Act of 1982, the PPA provides stakeholders with robust mechanisms for checks and balances in procurement transactions.

The Act allows Procurement Entities (PEs) the flexibility to choose appropriate procurement methods, as outlined in Sections 37 to 47.

It is imperative for Procurement Experts, Officers, and their Assistants to be diligent readers of the law and skilled managers of all stakeholders in the supply chain.

Section 46 of the Act authorizes the use of Direct Bidding (DB) in circumstances that warrant it, such as emergencies.

However, experience shows that goods, works, and services procured through DB often attract scrutiny due to a lack of understanding among stakeholders, including whistleblowers, about the administrative processes involved.

The law also covers Selective Bidding (SB) and Direct Selection (DS), as provided under Sections 46 and 47, respectively, and requires the issuance of a circulation paper justifying these methods.

The Head of Procurement or Director of Procurement must ensure strict adherence to all procedures, considering that stakeholders are always vigilant for any legal or procedural lapses.

This article highlights the importance of transparent communication with all stakeholders throughout the procurement process.

Drawing a parallel with the Enron scandal, it is evident that the company’s downfall was largely due to its failure to defend its decisions, leading to financial ruin caused by massive accounting and corporate fraud.

To prevent a similar fate, the role of the Procurement Department, led by the Procurement Manager, is to ensure full compliance with the law and regulations, thereby safeguarding stakeholders’ interests.

Recently, I have observed instances where certain stakeholders questioned decisions made by the Procurement Committee to award contracts. It is the responsibility of the Procurement Committee (PC) to communicate these decisions effectively, as it is a fundamental part of our training.

Section 71 of the PPA mandates that, in the case of tenders conducted under Open National Bidding (ONB), the Procurement Entity must inform bidders and the public within two days of the PC’s decision to award the contract to the most responsive bidder.

Section 71 is a crucial legal provision that allows aggrieved parties to seek clarifications from the Procurement Entity.

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Additionally, it challenges Procurement Experts to be not only knowledgeable about the law but also effective communicators about the intricacies of the procurement profession.

Zambia has made considerable progress in promoting corporate governance, and continued discourse on the Act and its regulations will further enlighten us all for the greater good of our nation.

In future discussions, I intend to explore the relevance of the Market Price Index in curbing overpricing of goods and services, as provided under Section 12 of the PPA.

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