Why procurement professionals need an umbrella body

It is estimated that about 60 per cent of the government budget is spent through public procurement. The government’s initiatives in economic development and poverty reduction also rely on public procurement to ensure that tax-payers’ money is properly allocated and utilised. This is achieved through the procuring and contracting the best qualified contractors at the least cost (value for money) and ensuring contracts are properly managed and executed.

Monday, July 22, 2013
Procurement professionals at the PwC-sponsored forum held a fortnight ago. Sector professionals are seeking to form an umbrella body. The New Times / Courtesy

It is estimated that about 60 per cent of the government budget is spent through public procurement. The government’s initiatives in economic development and poverty reduction also rely on public procurement to ensure that tax-payers’ money is properly allocated and utilised. This is achieved through the procuring and contracting the best qualified contractors at the least cost (value for money) and ensuring contracts are properly managed and executed.In recognition of the important role of public procurement, the government has put in place several initiatives to build capacity in public procurement supported by strong systems and processes. These systems are guided by the public procurement laws and regulations that are designed to ensure open and transparent public procurement processes. In addition, the Rwanda Public Procurement Authority (RPPA) was also instituted to oversee the exercise. However, the interpretation and practical application of public procurement laws is often complex and requires continued guidance and consultation. This is evident from the number of audit issues raised around non-compliance with public procurement procedures. From the audit reports issued to date, at least 50 per cent of the audit issues reported relate to public tenders. In support of the initiatives undertaken by government to build capacity in public procurement, and the need to ensure compliance with public bidding procedures and increase the number of clean audit reports, PricewaterhouseCoopers (PwC) Rwanda recently sponsored a public procurement forum last week at Serena Hotel, Kigali. The forum brought together all stakeholders to discuss key issues in public procurement. The overall aim of the public procurement forum was to improve compliance with public procurement procedures through discussing practical application of procedures, best practices and updates in public procurement, role of procurement in public financial management reforms, tax treatment of tenders and common audit issues, challenges and constraints in public procurement. The forum also provided a platform for sharing experience on public procurement. Discussions were mainly about the recent amendments to public procurement laws and regulations, the role of procurement in PFM reforms in Rwanda and professionalisation of procurement in Rwanda. Others were practical experience on challenges in application of tax legislation in public procurement, guidance on tenders and contracts tax, common pitfalls and audit issues, challenges and complexities in public procurement as well as sharing of experiences in public procurement by participants. All in all, it is hoped that the forum will contribute to building capacity and strengthening compliance with public procurement laws and regulations in an effort to increase the number of clean audit reports. As the curtain fell, all the participants were in agreement as to the need of a professional body for procurement practitioners. In fact, plans to establish a procurement institute in Rwanda to regulate and promote the profession in the country were mooted. The forum lays a foundation for the upcoming Rwanda Institute of Procurement Professionals. Once the institute is in place, it is hoped it will continue to hold similar forums for practitioners. All in all, this was a good start in bringing together procurement professionals. The writer is a director in government and public services at PricewaterhouseCooper Rwanda. She was the organiser of the procurement forum