There is hope for improved and transparent procurement processes in the country following the passing of the amended Public Procurement and Disposal of Assets Act.
The bill was passed on Tuesday parliament, just two weeks after Minister of Finance, Simplex Chithyola Banda announced in parliament that the reviewed Act had been brought for tabling following its completion.
The law has been undergoing review for some time now to incorporate some new developments in the industry as well as closing some gaps and grey areas that were noted.
Among others, the amended Act includes a requirement that calls for entities to seek clearance from the Anti-Corruption Bureau-ACB for single-source procurements.
Key changes in the Act include the abolition of the deputy director’s office at PPDA and the incorporation of an Electronic Government Procurement (e-GP) system, a proposal made by the Malawi Institute of Procurement and Supply (MIPS) during pre-budget consultations.
The new bill has also abolished the office of the deputy director of the PPDA.
And it has also taken into consideration the implementation of Electronic Government Procurement, which the Malawi Institute of procurement and supply-MIPS proposed during the Prebudget consultations earlier this year.
MIPS Chief Executive Officer, Feston Kaupa said the new law is a step forward, noting that it will enhance regulation of procurement management in Malawi.
“This will lead to improved efficiency, transparency, compliance and achieving value-for-money procurements leading to huge budget savings and release of financial resources that will be channelled elsewhere for the social-economic development of the country,” Kaupa said.
Procurement systems in Malawi have long been vulnerable to financial mismanagement and corruption. While MIPS has mixed feelings about the ACB vetting requirement, Kaupa acknowledged its potential to mitigate corruption risks.
“Analysis of procurement processes by the ACB will detect potential corruption risks, such as inadequate competition, biased evaluation criteria, or insufficient transparency,” he said. “The ACB will be able to identify suspicious patterns, such as repeated awards to the same bidder or unusual payment arrangements.”
The amended PPDA Act will become fully operational once it is signed into law by the President.
