Talking Public Procurement 1: Board Composition
In recent years, it has been increasingly recognized that strengthening of public procurement systems can positively impact on economic and social results. Public procurement of goods, services and works, accounts for a significant number of national expenditures (domestically generated as well as received from Organizational Development Agents (ODA). Globally, public procurement is estimated at about 15% of the world’s GDP, but in some developing countries, it may account for as much as 70%. This is particularly the case in Less Developed Countries (LDCs) and post conflict countries, where underdeveloped private sectors require public sectors to play a major role in the delivery of services and the provision of much needed economic infrastructure.
When the fundamental procurement principles of open competition and transparency are combined with operational efficiency, reduced corruption, and increased professionalism, the result is greater value for money and increased public service delivery. Public procurement is also a stimulus for growth in the domestic and/or regional private sector as the government is one of the main investors in the private sector and thus hugely influences the way that business processes evolve within the country.
It is in this context that the Government of Zimbabwe has taken important steps to reform its public procurement systems through a comprehensive and multi-faceted reform program. Through the support of grant from the World Bank’s Zimbabwe Reconstruction Fund, there was an enactment of a new Public Procurement and Disposal of Public Assets Act [Chapter 22:23] of 2018 which provides the legal framework, the development of practical tools for implementing the law, including standard bidding and contract documents.
For effective and total transformation of procurement systems at organizational level in line with the Government’s thrust, there is need for total commitment and technical understanding of procurement processes and systems at board level. There is need to rethink on how boards of public enterprises and local authorities are constituted. I believe these boards should be constituted with procurement in mind if the reforms are to achieve the intended results. Strategic procurement by nature is a technical discipline which needs qualified, experienced, and certified professionals to be appointed in boards to provide the much-needed technical guidance to the board itself and the operational support to the executive management of the organization. Let me hear your thoughts. #procurement