By Beverly Bizeki
Procurement Regulatory Authority of Zimbabwe (PRAZ) has raised alarm over the 2023 purchasing methods statistics in which urban local authorities topped direct procurement methods with over 70 percent.
According to PRAZ, the figure is worrying if Zimbabwe is to achieve its Sustainable Development Goals (SDGs).
According to statistics released by the regulatory board, city councils came top in direct procurements for USD purchases which amounted to US$106 612 141 out of a total of US$139 047 412.07 spent under this purchasing method in 2023 which translates to about 76 percent.
Of the 44 019 procurements made last year, urban local authorities accounted for 12 581 purchases, however, statistics for the ZWL purchases, the authorities used RFQs a purchasing method in which an enterprise asks a set of potential suppliers to give their price quotations and stand a chance to supply or provide goods or services.
PRAZ Chief Executive Officer (CEO) Clever Ruswa said the statistics were not pleasing and urged local authorities to use other methods of purchases for sustainability.
“Section 30 of the Public Procurement and Disposal of Public Assets Act gives the procurements methods to be used with the default being competitive tender which speaks to the objectives of the Procurement Act. Competition enhances farness and value for money but if one is going for direct procurement they are closing out all other players unnecessarily and the aspect of value for money is not realized.
“We allow direct procurement when necessary for instance in emergencies such as Cyclone Idai and Covid 19 and as a regulator we postponed all these other procedures but any other procurements which are not of proprietary nature we encourage competitive procurement. Unfortunately the statistics availed by this board shows that most of the urban local authorities are going for direct procurement which is not very ideal for sustainability,” said Ruswa.
In his speech Ruswa said the procurement practices they were urging local authorities to adopt had benefits such as realizing economies of scale, reducing costs, and increasing quality of goods and services procured.
“The procurement practices which we are encouraging you to do, play a pivotal role in achieving economies of scale, enhancing transparency, and fostering collaboration among local authorities.
By pooling your resources and expertise, you can leverage your collective strength to negotiate better deals with suppliers, reduce costs, and increase the quality of goods and services procured. This approach also promotes consistency and standardization, ensuring that best practices are shared across all local authorities, leading to improved overall performance,” he said.
Ruswa also urged local authorities to embrace the eProcurement system set by government to enhance fairness and competition in the procurement landscape.
“The electronic Government Procurement (eGP) system is a game-changer in our quest to evolve the procurement system in Zimbabwe by delivering efficiency, effectiveness and transparency. The eGP system will streamline workflows, reduce administrative burdens, and enhance accountability. The eGP system empowers both buyers and suppliers by providing real-time access to information, facilitating fair competition, and ensuring a level playing field. Moreover, it enables data-driven decision-making, allowing PRAZ to analyze trends, identify gaps, and continuously improve our procurement strategies,” he added.
Permanent Secretary in the Minister of State’s office Dr Addmore Pazvakavambwa who was representing the Minister of State for Provincial Affairs and Devolution Ezra Chadzamira also echoed the same sentiments on the shocking statistics on direct procurement.
“Statistics given by the CEO are quite shocking to realize how much we expend through RFQs and direct procurement disregarding other ways of procurement which are more sustainable so I would like to urge all local authorities to take the advice given on board to improve the way we are doing things.
“I reckon that PRAZ is doing much more with the president launching the e-Procurement system which is the way to go so that we do away with corruption around the area. We have heard of tenderpreneurship so all this can be done away with if we do things the sustainable way not only looking at today but in the future as well,” said Dr Pazvakavambwa.
Competitive tendering is a purchasing method in which potential suppliers bid against each other to win a certain contract.
