HomeNewsGovt reviews State procurement threshold

Govt reviews State procurement threshold

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THE government has reviewed to $300 000 from $50 000, the value at which local authorities, State departments and parastatals can autonomously procure goods and services for construction work without approval from the State Procumbent Board (SPB).

By Business Reporter

According to a statutory instrument published last Friday, a list of State-owned entities including Air Zimbabwe, Parirenyatwa Group of Hospitals, Zimbabwe National Road Authority and the Securities Commission, now have the latitude to implement projects worth over $50 000. “It is hereby notified that the Vice-President, after consultation with the Minister of Finance, has in terms of Section 33 of the Procument Act (Chapter 22:14) (Act No 2 of 1999), made the following regulations: by deletion in Sub-section (1) of the words ‘construction work’ and the amount ‘$50 000’ and the substitution of the amount ‘$50 000’ with $300 000,” reads Statutory Instrument 160 of 2012 in part.

The review of the State procurement threshold followed widespread criticism over the cumbersome process of procurement by the SPB resulting in State entities losing substantial business.

Earlier reports suggested that Finance minister Tendai Biti was not happy with SPB boss Charles Kuwaza over the board’s inefficiency while the latter blamed lack of government funding for delaying the completion of construction projects.

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