Monday, June 20, 2016

Procurement Act revise to target special groups

DAILY NEWS Reporter in Dodoma
PROPOSED amendments to the Public Procurement Act of 2011 are expected, among others; to enhance participation of local traders and special groups in public purchases and discourage importation of goods and services in the domestic market.
The Commissioner of Public Procurement in the Ministry of Finance and Planning, Mr Fredrick Mwakibinga, explained here that priority for awarding tenders will be on industries and companies producing goods and services using local materials; and with the local labour force of 80 per cent.
“In the same vein, local government authorities will be required to allocate 30 per cent of their tenders to special groups in their communities including women, youth and disabled,” Mr Mwakibinga said here yesterday during an awareness seminar to parliamentarians.
Mr Mwakibinga said the proposed amendments are crucial to enhance efficiency and transparency in public procurement; given the fact that 70pc of the government budget is channelled to procurement of goods and services.
The government tabled for the First Reading in the National Assembly last Thursday, the Public Procurement (Amendment) Bill, 2016, which seeks to curb loopholes in public purchase that have led to inflated costs and corruption in public procurement.
Among others, the proposed amendments are envisioned to set standards for goods and services to be purchased by the state, making use of benefits of bulk procurement as well as procuring items as per prevailing market prices.
“In the past, for instance, we had standards for all government vehicles, furniture, houses and stationeries, among others, but the case is different at present,’’ noted the commissioner.
“If we had specific types of such vehicles, it would have been much easier to build capacity for the Tanzania Electrical, Mechanical and Electronics Services (Temesa) to provide maintenance for the cars,” the official explained.
Mr Mwakibinga elaborated that the envisaged amendments will as well reduce the time and process used by procuring entities to make the procedure more efficient. “Bulk procurement in public purchase will also improve our bargaining power in the market through direct buying from manufacturers rather than middlemen,” he told lawmakers at the seminar.
The official noted as well that political will was crucial in implementing the new legislation, expressing concerns that thieving public officials have been hailed in their communities rather than condemned for their ill-acts. Contributing to the presentation, Lupa MP Mr Victor Mwambalaswa (CCM) was of a view that not only the flaws in the current legislation that was the problem but also officials involved in procurement entities.
“There are some institutions with incompetent officers in their procurement management units and this is a problem; we need competent people for the job,” he submitted. The MP was as well irked that Tanzania lacked a special policy to guide purchase of motor vehicles as it was in neighbouring countries.
The views were shared by Kigamboni MP Dr Faustine Ndugulile (CCM) who suggested that the country should put in place a policy on procuring, maintenance and disposal of public goods.
He as well expressed concern that most government institutions were not making use of warranties provided to them to repair vehicles within three years of purchase or 90,000 kilometres of road use.
Special Seats MP Ms Lucy Mageledi (Chadema) decried “the red tape in public procurement’’ while Moshi Urban MP Mr Jafary Michael (Chadema) wanted finance and planning committees in local governments to be given powers to intervene when they detect flaws in awarding tenders.
Korogwe Rural MP Mr Stephen Ngonyani (CCM) had proposed that lawmakers and local councils should be part of the tender boards in the constituencies. But the proposal was opposed by the majority of MPs at the seminar.
Nkasi North MP Mr Ally Keissy (CCM) said the proposed amendments were long overdue, noting that most of government purchases were overdue. “These changes should have been brought ten years ago.
I also oppose inclusion of MPs and local councillors in the tender boards since many of them are thieves and thus cannot be trusted,” the firebrand legislator charged.
For his part, Bukene MP Mr Selemani Zedi (CCM) was skeptical whether the special groups will be able to participate in the tenders since most of them were not registered for Value Added Tax (VAT) and thus not using electronic fiscal devices.
“The government has stated that starting next year, it will only do business with traders with EFDs; yet these special groups -- women, youth and the disabled -- do not have the electronic machines,” he noted with concern.
At the same occasion, the Minister for Justice and Constitutional Affairs, Dr Harrison Mwakyembe, said the government will translate the envisaged legislation into Kiswahili to allow broader understanding and participation by all the people

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