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NewsDay

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The new role of PPOs in summary

Columnists
REFORMS in procurement are generally shaped by the objectives that emanate from the problems that individual countries would want to solve.

REFORMS in procurement are generally shaped by the objectives that emanate from the problems that individual countries would want to solve.

Issues such as the need to curb corruption in public procurement have been the major driver in Africa. Europe and General Procurement Agreement members within the World Trade Organisations are aimed at achieving equal opportunity, equal access and transparency in public procurement policies.

Countries that prioritise the fight for corruption focus more on tight regulations and massive removal of discretion in procurement decision-making process.

On the other hand, more controls through laws and regulations result in bureaucracy that inevitably adds to inefficiencies.

Developing countries have sidelined efficient public procurement systems for an appetite for more controls at the expense of public service delivery in general.

Generally, it has been acknowledged that the more the controls, the more the desire to subvert the system. Human beings by nature have an appetite to circumvent control.

In light of the above, the new public procurement office (PPO) in addition to the policy function, needs to take an active role in advising the government on procurement.

The new role of the PPO now goes beyond process monitoring to include involvement in developing the public procurement strategy.

The function is highly technical and requires administrators with a strategic vision in public procurement.

Procurement is dynamic and hence, the need to move at a pace consistent with the economic development to ensure that the mechanism of the government is efficient.

The world trends in procurement of projects, as opposed to the procurement of goods and services needs to be embraced in the new laws so that the benefits from public-private partnerships and foreign direct investment can be realised.

The PPO is expected to monitor public procurement activities, supervise procuring entities, enforce the procurement laws and perform capacity building in public procurement.

The monitoring function would involve data collection on procurement activities, analysing the statistics and recommending programmes to improve the system.

The government requires information on type of products and services that the public sector is procuring.

Statistics about the value of the procurement and procurement methods applied needs analysis to inform the effectiveness of public procurement. Programmes will then be recommended after the critical analysis of the data collected.

Supervisory activities will depend on the system adopted by the government.

Some systems have adopted devolved public procurement in the developed countries such as the European Union.

Some adopted development partners systems where a no-objection is issued for procurement of a certain threshold.

Enforcement implies that the PPO is the first level of appeal for any procurement in the public sector.

This will achieve speedy resolution of procurement decisions challenged as well as building confidence in the public procurement system.

Capacity development is paramount in public procurement.

Procurement is dynamic hence the need keep up to date on the developments. It is the role of the PPO to ensure that public procurement resources are effectively developed for them to be efficient.

Capacity development might extend to providers equipping them with information necessary to prepare responsive bids, increasing public procurement competition that is necessary to achieve value for money for the benefit of the general citizenry.

lNyasha Chizu is a fellow of the Chartered Institute of Procurement and Supply writing in his personal capacity: Feedback: [email protected], Skype: nyasha.chizu