Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI



Liberia: Malpractices At GAC?

November 12, 2012

Activities at the General Auditing Commission have come in the prism of review and reflection days after 46 staffers were relieved of their posts due to what the new administration of Robert Kilby terms “overlapping of functions and budgetary constraints.”

The reported unwholesome activities and malpractices reportedly allegedly championed by the new boss include the purchase of vehicle outside of the Procurement Act, employment of individuals on family and friendship basis and many others.

The African Standard an online news magazine in a statement released and cascaded to media entities has detailed some of the troubling activities at the GAC as the involvement of Auditor General Robert Kilby in acts that do not conform to set standards, ranging from the purchase of a vehicle outside of the Procurement Act, the employment of relatives and comrades and many more.

Besides that, he is accused of employing people who lack the professional wherewithal to perform the tedious task at the GAC while at the same time laid off those who underwent rigorous trainings in many fields of the profession here in Liberia and outside at the expense of the institution.

The magazine named the former Engagement Manager of NOCAL audit, Mr. Alieu Konneh, senior auditor Amos Borbor and overall audit boss Richard A. Wisseh as some of the experienced auditors fired.

Mr. Kilby is also accused of replacing his son, Stephen Weltee Kilby with Michael Gray of Grand Cape Mount County.

For example, the African Standard Magazine claimed Mr. Kilby has just hired 18 people, adding US$35,000 per month to GAC monthly payroll.

According to the report, these new positions were not budgeted for in the current 2012/2013 Budget

Some of the staffers hired by Mr. Kilby are named as Cornelia K. Green-Mason, Executive Assistant to AG with the reported salary of $3,000, Theophilus Julu, Manager Facility with the alleged salary of $1,000, Nathaniel Brumskine, Director of Communication with the alleged salary of $3,600, Stephen Weltee Kilby, Executive Driver with the alleged salary of $700 and Ebenezer Clanko Dunn, Messenger with the alleged salary of $700…Read more.

Here’s a new trend to watch – ‘managed competition’

Strategic Partnerships, Inc.

By Mary Scott Nabers, CEO of Strategic Paternships, Inc.

Public officials in many parts of the country are testing their own internal teams. Simply put, they are engaging in what is called “managed competition.” Here’s how it works. Private firms are invited to compete with government departments on contracts. The result is that taxpayers can be assured that services are being provided at the lowest possible cost.

Local governments are beginning to solicit proposals from private firms for various services including infrastructure maintenance, facilities maintenance, utilities and water and wastewater projects. The competitive process is considered to be “managed” by the government, which sets guidelines for private and public bidders. This allows the city to conserve resources through the efficient provision of services that naturally result from the competition.

This trend is gaining momentum because it streamlines processes and encourages efficiency.

Examples include the following:

  • The city of Indianapolis was one of the first to adopt managed competition and has become a leader because of its success with this process. Competitive bidding was introduced initially to encourage efficiency and cost savings and to test the validity of in-house operations.
  • Tulsa, Oklahoma, has also adopted the use of managed competition. The city had previously employed a consulting firm to review the cost savings and efficiency generated by this process, and it was found that the Department of Public Works had the most opportunities for managed competition. Interestingly enough, in spite of awarding some contracts to private firms, the city selected city employees for city hall maintenance after a competitive process.
  • The city of Phoenix had outsourced its trash collection since 1979, using managed competition to ensure low costs and efficiency. And, attempting to be even more efficient, the city divided waste collection areas into 10 different contracts which were re-bid every six years each. After 2009, however, city employees won the contracts back from a private sector incumbent firm.
  • Mayor Rahm Emmanuel introduced managed competition into Chicago’s recycling program. Recently, the city accepted bids for the Blue Cart Recycling program, which facilitates the collection of recycling in six separate service areas mapped out by the city. Two separate private companies were selected to manage four of these areas and the city will manage the remaining two.
  • Charlotte officials have implemented a program titled North Carolina’s Managed Competition Program. The program covers a broad spectrum of services including fleet and street maintenance, water services, wastewater utility services and solid waste collections.

This is definitely a trend to watch!

© 2012 – all rights reserved.

South Africa Government : Agriculture, Forestry and Fisheries hands over financial and procurement irregularities investigations to Police


August 7th, 2012
DAFF hands over the investigations in the fisheries branch to the SAPS

6 Sep 2012

The Department of Agriculture, Forestry and Fisheries has officially handed its investigation into suspected financial and procurement irregularities, maladministration, and corruption in the Fisheries Branch of the department to the South African Police Services (SAPS).

“The investigation is effectively out of the hands of the department and the Minister. Once complete, the SAPS will advise the department on appropriate actions to be taken,” the acting director general, Sipho Ntombela confirmed.

In March 2012, the Department of Agriculture, Forestry and Fisheries, initiated a forensic investigation into the award and multiple extensions of the vessel management function to a shipping management company. Essentially the investigation had to establish whether there were irregularities in the past tenders and management thereof awarded to the company and to its business associates. Smit Amandla Marine has been providing the vessel management function to Government for the past 10 to 12 years.

The investigation mentioned above has reached a critical stage and the department has thus decided to hand it over to the SAPS for finalisation.

“The initial investigation was carried out by a reputable forensic firm that uncovered that there are possible cases of corruption in the Fisheries branch. The investigation by the SAPS is a culmination of this process”, Ntombela concludes.

Below please find a timeline of the events leading up to the handing over of the case to the SAPS:


  • 2000 to 2005: The Department of Environmental Affairs and Tourism awards Smit Amandla Marine a tender for five years
  • 2005 to 2010: The contact is extended for another five years, no tender process
  • 2010: Contract is extended for a year
  • 2011: Contract is extended for a year
  • March 2012: Department of Agriculture, Forestry and Fisheries initiates investigation into the matter
  • August 2012: Initial findings reveal possible irregularities in procurement, financial management and corruption

Procurement Leaders Need to Challenge Tradition to Build a Resilient and Agile Function

The Sacramento Bee
The Sacramento Bee (Photo credit: Wikipedia)

The Sacramento Bee

By IQPC Exchange

August, 24, 2012

LONDON, August 24, 2012 — /PRNewswire/ —

CPO Exchange releases results of pan-industry, C-level procurement survey:

  • 83% of procurement leaders agree that they need to rethink their procurement strategies to better position their organisations to tackle present and future challenge
  • 57% are aiming for cost reduction and better control of spend to improve efficiencies and gain greater influence in the organisation;
  • 45% of respondents are looking to improve stakeholder management and communication and;
  • 39% aim to streamline internal processes through deployment of procurement technologies.

Over the last six months IQPC Exchange spoke with a pan industry group of C-level procurement leaders spanning Europe, Asia, Africa and the Middle East to find out what strategies they have put in place to safeguard their organisations in the unsettled economic and political climate and how are their procurement departments are responding to the fact that volatility is the new ‘normal’.

83% of procurement leaders agree that they need to rethink their procurement strategies to better position their organisations to tackle present and future challenges. Consequently, procurement risk management and supplier risk management came up as a top priority for 62% surveyed.

Gathering business intelligence about their suppliers and key markets, closely monitoring critical KPIs and spreading their risk by having more suppliers are further strategies mentioned.

Livia Trubenova, Head of Research at the CPO Exchange, commented on the results: “This fascinating survey is just the start of our continuing research with CPOs. We can already see that procurement leaders are working on growing the influence of and recognition for the procurement function within their organisations I look forward to the lively debate and benchmarking at the next CPO Exchange!”

The CPO Exchange will be releasing expert views on these and other topics through speaker interviews and updated research findings with C-level procurement leaders on the CPO Exchange website You can get involved by joining the CPO Exchange group on LinkedIn CPO Exchange to engage with leading procurement professionals.

The CPO Exchange is an invitation only event which brings together the most forward-thinking leaders in procurement to discuss strategic issues shaping their and your business agenda. This forum offers a perfect setting for leaders in procurement to network, benchmark and discuss effective business strategies. Attendees will tailor their agenda by selecting from a range of keynote presentations, lively panel debates, peer sharing roundtable discussions, interactive BrainWeave sessions and one-on-one business meetings of their choice.

For details of solution provider opportunities or to request your invitation, please get in touch with CPO Exchange team via or visit

* Senior procurement professionals

About IQPC Exchange

IQPC Exchange provides business executives around the world with tailored practical conferences, large scale events, topical seminars and in-house training programmes, keeping them up-to-date with industry trends, technological developments and the regulatory landscape.


Beata Majcher+44(0)20-7368-9404


80 years of CIPS: 2007-2012

7 June 2012 | Nick Martindale

CIPS has gone from strength to strength in the past five years, says Nick Martindale, putting procurement firmly on the global map.

The past five years have seen CIPS cement its place as the leading global organisation for procurement and supply management and further its reputation and presence around the globe.

The appointment of David Noble as chief executive in 2009 has been key to the organisation’s ongoing development, drawing on his background in senior, board-level positions inIMINovar and Honeywell. In taking on the post, he became the first procurement professional in the top job in more than 20 years.

With the UK and most of the rest of the world in recession, Noble pledged to help put procurement at the heart of organisations. “There’s never been a better time to be in this profession,” he said. “Chief executives are looking to procurement to ensure they maintain and grow their businesses. In this economic environment, growth is not going to come from marketing and sales, but from how well you manage your resources.”

His was not the only notable appointment, however. Dr Bola Afolabi, project director for the Nigerian National Oil company, was named international president for 2008-09, becoming the first non-European in the role. Former chief executive Ken James, meanwhile, who led the organisation from 2001 to 2008, was awarded an OBE for public service in the Queen’s Birthday Honours list of 2008, while the appointment of David Smith, commercial director at the Department for Work and Pensions, as 2011-12 president also demonstrated the ability of both the organisation and procurement to influence at the very highest levels…Read more.

Polaris seals big EMEA surveillance contract

Trade Arabia

May 27, 2012

Polaris Wireless, a leader in software-based wireless location solutions, has inked a significant customer contract, for a multi-million dollar deployment of its location surveillance product suite in the Europe-Middle East-Africa (EMEA) region.

Polaris Wireless high-accuracy location solutions are a vital tool in combating crime and terrorism, and have been extensively deployed since 2003 for public safety applications in the US market, said a company statement.

This deal represents a major increase in Polaris Wireless business, and is the fourteenth deployment of its wireless location surveillance solutions – the Polaris Wireless Altus and OmniLocate – outside the US, and 38th globally.

“We are very pleased to have achieved such a significant company milestone for high-accuracy wireless location surveillance solutions,” remarked Manlio Allegra, the Polaris Wireless CEO and co-founder.

“Our momentum is directly attributed to our unmatched ability to consistently deliver a 2G/3G-compatible (and very soon 4G) high-accuracy, highly-scalable, software-based location solution for public safety and surveillance,” he noted.

The Polaris Wireless Altus application suite is the industry’s only software-based surveillance solution that enables accurate mass location – providing users the ability to simultaneously locate all subscribers in a wireless network in real time and on a historical basis.

This unique capability enables functions, such as target identification, tracking via geo-fence, and post-event analytics, which are vital to the anti-crime and anti-terrorism surveillance efforts of Polaris Wireless customers around the world, said Allegra.

“This deal has contributed to the highest revenue-earning year in Polaris Wireless history,” he stated.

“We are exploring several additional opportunities in the international marketplace, and plan to increase our workforce in order to meet the growing demand,” he added.

Headquartered in Mountain View, California, Polaris Wireless is a leader in providing high accuracy, software-based wireless location solutions to wireless operators, law enforcement/ government agencies and location-based application companies.

It has offices in Dubai, Bangalore (India) and Santiago (Chile).-TradeArabia News Service.

Procurement and supply chain professionals converge over accountability

March 31, 2012

Over 500 senior executives and experts are expected to attend the Pan African conference on procurement and supply chain management from 8th to 9th of May, 2012 in South Africa.

Dr. Douglas Boateng, President and CEO of PanAvest International and Founding Chairman of KNUST’s West African Institute for Supply Chain Leadership will address the professionals at the 2012 Chartered Institute of Purchasing and supply (CIPS) conference under the theme “Risky Business”.

Participants will look at how procurement governance and professionalism can help negate business risks, plus assist governments to improve amongst others accountability and service delivery.

Dr Boateng currently chairs the institute’s Best Practice Adjudication Panel (Africa) and is also a FELLOW of the Institute. He is also the President of UK’s Institute of Operations Management-Africa, Editorial board member of Smart Procurement. He founded the West African Institute for Supply Chain leadership; a public private educational partnership between the PanAvest Foundation and KNUST Business School.

The Chartered Institute of Purchasing and Supply is the worlds’ largest professional body that upholds professional standards in procurement and supply chain management.

$8.6m electrification, instrumentation contract for Ngodwana mill

Engineering News

By Megan Wait

March 16, 2012

Power and automation technology group ABB reports it has been awarded a large electrification and instrumentation and distributed control system order by pulp and paper producer Sappi Southern Africa.

ABB will engineer, procure and supply equipment for Sappi’s Ngodwana mill, in Nelspruit. This scope forms part of Sappi’s Go Cell project, which entails the expansion of the current mill for the production of chemical cellulose. This order follows ABB’s successful implementation of Sappi Saiccor’s Amakhulu project in 2007.

Among the products to be supplied are medium-voltage switchgear, low-voltage motor control centres incorporating intelligent motor controls, Profibus intelligent instrumentation, variable-speed drives and ABB’s 800xA control system. These products will support the mill’s goals to increase efficiency and lower energy consumption.

To meet Sappi’s project deadline, ABB will appoint an international team of pulp and paper composite plant experts from South Africa, Finland and Singapore to lead this project. The project team will ensure the seamless installation and completion of the electrification and automation equipment in Sappi’s required timeframes. Plant production is expected to start in 2013.

Sappi Southern Africa is also involved in the production of chemical cellulose, which is used in the production of a wide range of consumer products, such as clothing, plastics, food and pharmaceutical products.

“ABB South Africa’s contribution to the expansion and modernisation of Sappi Ngodwana is a proud achievement for ABB and a further testament of our capabilities in the pulp and paper sphere for this giant player in the industry. The project teams from the two companies will develop capabilities to benefit processes in the production of chemical cellulose at Sappi,” ABB South Africa CEO Carlos Poñe concludes.

Portland Cement launches vetting of suppliers

Business Daily

February 20th, 2012

Troubled East African Portland Cement Company is seeking to overhaul its list of suppliers amid a boardroom wrangle that the government has linked to fraudulent procurement.

In a newspaper advertisement, EAPCC is seeking to vet afresh 98 suppliers of goods and services, saying only companies scoring highly as per its evaluation criteria will be pre-qualified.

“All existing suppliers who wish to be retained in the database (of suppliers) must apply and submit up to date information requested in the current pre-qualification data sheet,” read part of the advertisement.

Analysts say the fresh vetting of the company’ suppliers could be driven by a need to clean up its procurement department in light of the accusation of fraud.

“The company could be moving to ensure their long-running relationship with suppliers is not tainted with fraud and that it gets value for money,” said Robert Nyamu, the head of forensic audit at Deloitte Eastern Africa.

Mr Nyamu said the review of pre-qualified suppliers helps companies to shake off old suppliers who may collude with senior management to push through fraudulent contracts.

Among the items and services EAPCC is seeking to pre-qualify suppliers for include raw materials such as coal, bauxite, and clinker whose recent supply contract sparked off the ongoing court battles.

Industrialisation minister Amason Kingi—who sought to suspend EAPCC’s board on December 22—has accused it of spending Sh1 billion on goods without following competitive bidding and, in another instance, overruled the tender committee to vary the terms of a clinker contract. “Those purchases were made by direct procurement or restricted tendering,” read part of an affidavit by Mr Kingi.

The affidavit, for instance, said the board changed the terms of a contract to supply 140,000 tonnes of clinker after the supplier — Sanghi Industrial -— requested to increase the price from $58.90 per tonne after supplying only 67,000 tonnes.

The irregular purchases were made between August 15 and November 30, 2011, according to the affidavit.

The company’s directors, who have been temporarily reinstated by the high court, have hit back at Mr Kingi, saying the minister wants them out over a multi-billion shilling tender that the government allegedly wanted to go to a local supplier. They said the award of the Sh1.8 billion kiln upgrade contract to a South Korean firm, had upset government officials.

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