Tender Board

The print media recently revealed that the Road Development Agency was concerned about the capacity of the Zambia National Tender Board (ZNTB) to handle bids on time. In addition, during a parliamentary committee sitting it was also reported that the Tender Board had failed to utilise K900 billion last year which was later returned to the Government Treasury.

There is a current initiative that aims to either amend the ZNTB Act such that it better serves the purposes of Government procurement, or, to out rightly repeal the ZNTB Act to be replaced with a totally new Act that will overhaul Government procurement processes.

This initiative is an admission by the ZNTB that there are weaknesses in the Act that leaves the management helpless to perform certain functions that may be pertinent to the smooth, efficient and professional operations of the ZNTB. This ongoing program is welcome, but care must be exercised to ensure that the new ZNTB Act is not flavoured by ‘empire building’ and inter Governmental bureaucracy that will impact negatively on the performance of the ZNTB. Challenges for encompassing the vision of the Fifth National Development Plan and the new Citizens Economic Empowerment Commission must be taken on board. Additionally, Zambia is a member of the Southern African Development Community (SADC) and the Common Market for East and Southern Africa (COMESA) and is compelled to factor the procurement protocols and agreements at the regional level into the domestic public procurement legislation. At the global level, the World Trade Organisation (WTO) has also launched a series of trading processes and protocols that all member states are required to adhere to, which no doubt will impact on our procurement relationships with foreign companies. The challenges are monumental and must be addressed in the context of the various instruments to which Zambia is a signatory.

At the ZNTB on the ground, one cannot over look the fact that the Ministry of Finance chairs the Board. This close relationship between the ZNTB and the Ministry of Finance begs the question of why is ZNTB seen to lack capacity to manage the bids that are tendered every day? The other question one may ask is what legitimate reasons can the ZNTB forward for failing to employ K900 million during 2008? What part of the perceived inefficiency at the ZNTB can be attributed to the lack of oversight and specific mandate from the Board that is chaired by the very Ministry that vocally highlights its weaknesses? Some introspective evaluation needs to be carried out to determine what the issues are and to offer sustainable solutions. This is a challenge to the Ministry of Finance and National Planning as well as the ZNTB Board of Directors.

Too often we see that the problems emanate from the top and the management finds itself handicapped to offer solutions as no clear direction, or options for redress are articulated at the policy level.

There is need for wide consultation as we evolve our public procurement tendering processes towards systems that focus on the development of the domestic economy while navigating through the maze of requirements developed at the regional level and within the global trading system.

Some clear cut strategies need to be developed that will avoid entangling ourselves in duplication and conflict as we seek to develop the economy and empower our people. Accountability, transparency, and collaboration with the private sector are imperative if ZNTB is to be perceived as impartial and professional in the way it conducts its business. In many parts of the world private sector consultants are called upon to assist in developing specifications or evaluating bids to ensure that the technicalities of particular industries are taken into account without compromising the tendering process. ZNTB must be able to advise various Government departments on aspects of procurement and should become the chief policy advisor to Government in respect to tendering processes and implementation and evaluation strategies. A deliberate public and private sector dialogue forum must be put in place to keep a constant contact with the stakeholders. It is from this forum that ZNTB will be able to extract data, concerns, and trends that will impact on the evolution of the policies affecting the public procurement system. Lessons from the experiences of withdrawing the various development agencies in favour of the Zambia Development Agency, and the sidelining of the Development Bank of Zambia in favour of the Citizens Economic Empowerment Funds are food for thought on how we can do it better, and at a sustainable level. The challenge is to continue to positively develop our public institutions so that they serve the purposes for which they were created.

An opportunity now exists to improve on what we have been doing in the tendering process. An amended or re-enacted ZNTB Act is only part of the way forward. There is room for looking at the composition of the Board of Directors. How will the Board influence the vision of the ZNTB? What benchmarks can be put in place to ensure ongoing monitoring and evaluation of the efficiency and efficacy of the ZNTB? Should we consider thresholds for Local Bidding and Competitive International Bidding? The glass is half full and all efforts must be made to improve the operations of the ZNTB and empower its management such that at the end of the day the Government which is the largest buyer in the country can be best served. A well functioning and efficient Government will save the taxpayers’ money, and ensure that the economy is firmly on the road to success for the benefit of all Zambians.

Published 15 April 2008