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Second report of the Portfolio Committee on Budget, Finance and Investment on the operations of the State Procurement Board
Parliament of Zimbabwe
August
20, 2012

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Introduction

The State Procurement Board (SPB) is established in terms of section 4 of the State Procurement Act, Chapter 22:14 of 1999. The Board's functions are as follows:

a) To conduct procurement on behalf of procuring entities, where the procurement is of a class prescribed in the procurement regulations;

b) To supervise procurement proceedings conducted by procuring entities in order to ensure proper compliance with the Act;

c) To investigate instances of impropriety where this is suspected and to take corrective action; and

d) To perform any other function that is conferred or imposed on the State Procurement Board, by or in terms of the Act or any other law.

The Portfolio Committee on Budget, Finance and Investment Promotion resolved to conduct an inquiry into the operations of the State Procurement Board. This followed allegations, by both contractors and procuring entities, of corruption, poor decisions on the award of tenders and the failure to adequately follow up on the performance of contractors. Players in the pharmaceutical and construction industry pointed out to these and other challenges the respective industries were facing with the procurement process. Articles in the print media also reported on litigation that was being instituted against the SPB by aggrieved suppliers over the manner in which tenders had been awarded.

Objectives

The objectives of the inquiry were as follows:

a) To establish challenges that were being faced by SPB in executing its mandate;

b) To be appraised of the challenges faced by contractors in the adjudication of tenders and implementation of projects:

c) To identify the gaps within the relevant legislation and recommend changes that will improve the system.

Methodology

In the course of the Committee's inquiry, public hearings were held in both Bulawayo and Harare. The Committee received oral evidence from the Chairman of the State Procurement Board and a written submission from the Minister of Finance. The Committee also studied procurement policies and procedures in other countries and those applied by multilateral agencies.

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