Public procurement efficiencies can lead to national development

Public procurement a visionary approach. A southern African Perspective.

-A Southern African (SADC) View -

Government is the biggest buyer in most countries, and public procurement commission or department is mandated to carry out the acquisition of goods, services and works as would be outlined in a public procurement act.

The key responsibility for a Government is to create an environment where majority of its people (physical or judicial) finds it easy to pursue and achieve their personal or economic objectives. For this reason, public procurement remains one of the most closely pursued and constantly queried departments in the Government administration.

It is the standard of a country’s public infrastructure that determines levels of economic success. Unfortunately, public infrastructure in most SADC countries remains poor, a hindrance to potential investments and economic activities hence, a deterrent to national development. 

Creating a diverse and reliable public Infrastructure is a daunting, complex and long term undertaking. It requires expertise and collaboration between stakeholders. A public procurement professional in cooperation with relevant entities should be in a position to competitively identify public requirements, appraise suppliers, negotiate and draft professional 'buyer/supplier' contracts that methodically incorporates the legal, commercial and technical provisions. 

Despite sound public procurement regulations in the SADC region, implementation leaves a lot to be desired. This is mainly due to lack of specialised skills. When a third of a country’s annual expenditure can not be properly accounted for (is misappropriated), it is a clear call for a decisive action.

For productivity’s sake, public sectors must earnestly address implementation challenges that are often too evident to ignore. Curative measures should include the following four: -

1- Continuous investment in human capital and creating decent working conditions and other incentives that attracts and retains rare talent.

2- Instilling ‘in public officials’ a sense of national discipline and ownership for public property. It is sad that; despite the meagre resources at Government’s exposure, many unpatriotic public officials keep ostracising and ridiculing their responsible colleagues for being too careful about public resources.

3- Annihilating corrupt behaviours by ensuring that; deterrent measures remain in place. These may include hefty fines, lengthy jail terms and professional black listing for serious offenders.

4- Deployment of personnel based on qualification and merit. Cadre and nepotistic deployments in public sector have achieved nothing except below average performances.

The procurement value (Return on investment) must be a key performance indicator in all public procurements. The department should be able to show savings or revenue contributions towards the ultimate objective.

The application of new information and communication technologies should not be ignored in procurement operations. Computerisation of; should cost modelling, target pricing, weighted average supplier score cards, spend data analyses and supplier performance appraisal techniques is necessary for quick, transparent and more accurate processes.

Continuous availability of supplies in the right quantities and qualities at the required time, are some of the main challenges or risks public procurement personnel should proactively address.

Public procurement teams must put communities’ and country’s interests above any thing else and be guided by Government regulations as constitutionally enacted. The professional and moral attributes of; ethics, accountability, transparency, equity and fair dealing must always be observed.

Corrupt public officials must understand that their actions have negative impacts on all residents of a country, themselves included.

Fundamentally, discipline, team work and performance excellence driven by patriotism helps to minimise embezzlement of public funds and enhance national developments that leads to economic growth. China is a giant example in this instance and indeed plausible efforts in Mauritius and Rwanda can not be overlooked.

On the issue of national economy, small and medium scale enterprises (SME’s) are engines for growth because they create more jobs. Government must promote these entities by justifiably providing them with contracts (e.g. to supply non complex and standard items) on favourable (win-win) terms. It should be Government policy that remittances to small scale supplier are expedited so as to keep them financially liquid and afloat.

Equally, small businesses must regard Government contracts as opportunities for growth. Hence, they must be patriotic enough by ensuring that their general performances are at par with the best if not better.

In all, qualified, reasonably supported and patriotic procurement professionals must take charge of public acquisitions and ensure that business principles of value for money and fit for purpose are strictly adhered to at all times.

SADC, just like the rest of Africa is abundantly blessed with valuable natural resources. If competitively and patriotically managed, the agricultural, tourism, mining and oil sectors in the region can rival any competition on the globe.

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Mr OJ Mwale works with SANI Inc. as a Strategic Procurement and Supply Consultant for South Africa, Zambia and Malawi.

 

05.04.2013