Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI


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Tanzanian minister calls time on procurement corruption


28 June 2013 | Adam Leach

The United Republic of Tanzania plans to review its procurement legislation to close loopholes that make it possible for corrupt officials to profit from the public purse.

Addressing parliament this week, minister of state Stephen Wassira, pledged to take action to ensure items could not be purchased at inflated prices under the law, which results in unreasonably high profit margins for suppliers. As well as helping to reduce corruption, he said the more robust rules would boost competitiveness among businesses looking to supply to government.

Announcing his intention, Wassira, said: “The time has come to review the law. You can hide under the law and steal according to the law. If we do not act now and [instead] let corruption thrive, everything we buy or make will be substandard. And if we continue like this we will erode development.”

Around 70 per cent of the country’s development budget will be channelled through public sector procurement. The minister used this to strengthen the case for ensuring regulations are tight and robust.

Employee gift ban recommendation still has few takers (U.S.)

Despite new CPS scandal, governments reluctant to establish zero-tolerance policy

By Joel Hood, Chicago Tribune reporter

March 25, 2012

Concerned over a rash of ethics violations by city employees in 2010, Inspector General Joseph Ferguson urged Mayor Richard M. Daley to implement a citywide ban on gifts from businesses who contract with the government.

The city’s Board of Ethics quickly rejected the idea, saying that while a zero-tolerance gift ban might make sense for some departments, enforcing it citywide would send the message that “city employees are essentially corrupt and cannot be trusted to use good judgment.”…But using reasoning similar to Rollert’s, the Ethics Board said a ban on all gifts might restrict employees from taking “prudent business trips,” could foster a climate of “cynicism around government ethics” and may even make the problem worse by “driving gift-giving underground.” Read more.

Copyright © 2012, Chicago Tribune

Kenya: Proposed law promises to hasten pace of economic growth

September 12, 2011 (The Nation/All Africa Global Media via COMTEX) — The Public Procurement and Disposal Act (Public Private Partnership) Bill 2011 is ready for tabling before Parliament for debate.

If enacted, the law would put in place procurement and management structures to promote public private partnership (PPP) projects in that are expected to significantly boost the country’s economic growth.

Mr Stanley Kamau, the PPP director at the Ministry of Finance, said the private sector is better placed to promote efficiency and competitiveness in national development, hence the need for the partnership.

Huge potential

Mr Kamau identified some of the high-potential sectors for the partnership as information and communications, tourism, land reclamation, sports facilities and business process outsourcing (BPO).

He said national legislation is also attractive to investors, arguing that the Water Act and Energy Act provide a strong regulatory framework to protect investor interests.

Dose of competition

Mr Kamau said bringing the private sector into the country’s development structure would inject a dose of competition and efficiency.

The approach, he added, would improve the debt-gross domestic product ratio and the circulation of money in the local economy.

The government honours contracts, thus providing a favourable investment climate for the private sector to thrive in,” he said.

He explained that Kenya requires about Sh5.6 trillion ($60 billion) in the next eight years to develop infrastructure.

“The government can provide about Sh1.8 trillion ($20 billion), and the funding gap has to be filled by the private sector,” he said.

Independent Power Production (IPP) is a key area where the arrangement is expected to produce get enough energy to improve economic growth and industrialisation.

Concession of the Kenya Uganda railway to capital funds Citadel and TransCentury is another area.

The line is to be improved to open up economic opportunities in the East African region by easing the cost of transport.

The Konza ICT Park, for example, requires more than Sh1 trillion to realise its potential, and this can only be achievable through a public private partnership.


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