Statement by Zambia Public Procurement Authority Director General Mrs Idah C. Chella on the occasion of the Media Briefing on the Fourth Quarter of 2020 Highlights - February  24^th  2021

 

• Senior Members of Management
• Members of the Press
• Ladies and Gentlemen

 

Thank You and Welcome: Good morning and welcome to the Zambia Public Procurement Authority (ZPPA) fourth quarter media briefing. I am pleased to have the opportunity to speak with you today and highlight salient issues in public procurement for the fourth quarter of 2020. Thank you for being part of this briefing.

Today’s briefing will focus on the following:

• Electronic Government Procurement System;
• Compliance Monitoring; and
• Capacity Building.

Electronic Government Procurement:

Ladies and Gentlemen

ZPPA’s goal as outlined in its strategic plan is to establish a transparent and competitive public procurement system.  In view of this, the Authority has developed the Electronic Government Procurement (e-GP) Policy that will provide the governance framework for the implementation and rollout of the e-GP system.  The policy was approved by the ZPPA board of directors in the last quarter of 2020. The Policy will enhance digital transformation in public procurement and provide guidance on the implementation and rollout of the e-GP system and usage by procuring entities (PEs) in order to promote integrity, fairness and public confidence in the procurement process.

 

 

 

 

Ladies and gentlemen

ZPPA has been conducting a number of activities to encourage and promote the use of the e- GP system. The use of the e-GP System results in enhanced efficiency, accountability and integrity in public procurement. The Authority added twenty (20) PEs to the e-GP System in line with the Strategic Plan objective for 2020 which required an addition of 30% of high spending procuring entities on the e-GP system.

 

Ladies and gentlemen,

During the fourth quarter, two hundred and six (206) tenders were published on the e-GP system using Open National and International Bidding, Limited National Bidding, Limited International Bidding, Simplified Bidding, Open and Limited National Selection and Direct Bidding. I would like to recognise the PEs that recorded the most tenders on the e-GP System as shown below:

• Kawambwa Town Council;
• Ndola City Council;
• Bank of Zambia;
• Zamtel;
• National Pension Scheme Authority;
• Indeni Petroleum Refinery Company Limited; and
• Ministry of Energy. 

 

Ladies and gentlemen,

 

I wish to commend the top four (4) in the usage of the e-GP system for their procurements, Indeni with 71 tenders, Zamtel - 29, Ministry of Energy – 23 and Kawambwa Town Council – 17. The results were exemplary in this digital era. 

Furthermore, in order to provide continuous sensitisation and training on the use of the e-GP system, the Authority undertook six (6) site inspections at Chipata General Hospital, Chipata Provincial Administration, Eastern Water Supply and Sanitation Company Limited, Katete and Petauke District Health Offices in Eastern Province.

Further, ZPPA conducted various trainings for stakeholders. Twenty-two (22) PEs were trained in the full usage of the e-GP system. In addition, ZPPA trained three hundred and twenty-nine (329) suppliers in supplier registration and online bid submission on the Copperbelt Province.

 

The Authority has been registering suppliers in order for them to access business opportunities and transact through the e-GP system. During the fourth quarter, one thousand, six hundred and forty-five (1,645) suppliers registered on the e-GP system.

 

Compliance Monitoring

 

Ladies and gentlemen,

Compliance monitoring is one of the key functions of the Authority in regulating public procurement. Compliance monitoring activities are undertaken in order to ensure that PEs are following the laid down procedures in the Public Procurement Act and its attendant regulations. In that regard, ZPPA undertakes compliance and capacity assessments and visits.   

 

Compliance assessments are undertaken in order to assess the compliance levels of the procuring entities. The assessments cover areas such as procurement procedures, availability of resources, staff adequacy, structure of the procurement unit, Procurement Committee composition, readiness to use the Electronic Government Procurement (e-GP) System, submission of various reports, record-keeping and consistency in the use of procurement documents. From the compliance assessments conducted, three (3) out of twenty (20) procuring entities assessed were substantially compliant, twelve (12) were fairly compliant and five (5) were non-compliant.

 

 In addition, ZPPA conducts capacity assessment visits in order to follow- up on the recommendations that are made during the compliance assessments. In the fourth quarter, eighteen (18) capacity assessment visits were conducted in various PEs in   Western, Eastern, North Western and Luapula Provinces.

 

In exercise of its oversight function in public procurement, ZPPA conducts investigations on various procurement matters and considers appeals from aggrieved bidders. In the fourth quarter four (4) appeals were determined out of which two (2) were dismissed in accordance with section 70 (5) (a) of the Public Procurement Act while two (2) were upheld.

 

 

Ladies and Gentlemen

The preparation of APPs by PEs and submission to the Authority is a legal requirement in the Public Procurement Act. The APPs enable the Authority to monitor procurements that are undertaken by PEs. In addition, APPs enhance transparency and predictability in public procurement. All PEs are required to submit the APPs to the Authority before the beginning of each year. However, only sixteen (16) PEs submitted their 2021 APPs to the Authority by 31^st December, 2020.

 

Furthermore, PEs are required to submit quarterly procurement reports to the Authority. The quarterly procurement reports enable the Authority to review procurements processes undertaken by PEs. There has been an increase in the number of PEs submitting quarterly procurement reports to the Authority. Eighty-one (81) PEs submitted their quarterly reports for the fourth quarter.

 

Ladies and gentlemen

 The Authority undertakes procurement audits in order to determine the completeness and accuracy of procurement processes in order to ascertain compliance with the Public Procurement Act and international best practices. In the fourth quarter, four (4) procurement audits were conducted at Zambia Centre for Accountancy Studies, Patents Companies Registration Agency, Zambia Forestry and Forest Industries Corporation and Luapula Provincial Administration. The procurement audits revealed that substantive work was required in order for the PEs to become compliant.

 

 Furthermore, the Authority monitored twenty-seven (27) contracts during the fourth quarter of 2020. The findings included the following:

 

• there were delays in the completion of twenty-four (24) of the twenty-seven (27) contracts (the delay was largely due to erratic funding); and
• the quality of works for twenty-six (26) projects was satisfactory.

 

ZPPA wishes to advise all PEs to adhere to the provisions of the Public Procurement Act and the Public Procurement Regulations in order to ensure that there is transparency, accountability, efficiency, competition, fairness and value for money in public procurement processes.

 

 

 

 

 

Capacity Building

 

Ladies and gentlemen,

 

In line with the strategic objective of enhancing capacity building and advisory services for PEs and other stakeholders, ZPPA was invited to facilitate on procurement related topics at three (3) workshops organised by the Ministry of Local Government, Anti-Corruption Commission and Zambia Institute of Purchasing and Supply, where four hundred and fifty-eight (458) participants were trained. Further, the Authority provided tailor made training to five (5) institutions with ninety-nine (99) participants. The five (5) institutions were Ministry of Higher Education, Zambia Airports Corporation Limited, Zambia Electronic Clearing House Limited, Higher Education Loans and Scholarship Board and Zambia Metrological Agency.

 

In closing, let me state that as a regulator of public procurement, the Authority will strive to improve the public procurement processes in order to ensure that there is value for money, transparency, accountability and efficiency in the public procurement system.

 

Let me also thank you the media, our strategic partner in the dissemination of information and news for your fervent work in informing the public about public procurement matters.

 

I thank you.