9

th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
Building Value through ublic rocure!ent"
A #ocu$ on Africa
b% &a%ne A' &ittig,
Senior Ad(i$er, ublic Sector rocure!ent,
International )rade Centre *+C)AD,&)O -I)C.
alai$ de$ +ation$
1/11 0ene(a 10, S1it2erland
#a3" 41 // 560 0669
&ittig7intracen'org
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
I. INTRODUCTION ...............................................................................................................3
II. IMPERATIVES FOR REFORM......................................................................................3
A' &O89D )8AD: O80A+ISA)IO+ I+I)IA)IV:S''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 4
1. Government Procurement Agreement...........................................................................4
2. Working Group on Transparency in Government Procurement...................................4
3. General Agreement on Trade in Services......................................................................5
B' S*O8) #O8 A+)I-CO88*)IO+ :##O8)S''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 5
C' I+I)IA)IV:S O# I+):8+A)IO+A9 #I+A+CI+0 I+S)I)*)IO+S'''''''''''''''''''''''''''''''''''''''''''''5
D' :;):8+A9 I+V:S)<:+) A+D O)=:8 8:SO*8C: +::DS '''''''''''''''''''''''''''''''''''''''''''''''>
:' S*O8) #O8 )=: DO<:S)IC S*9I:8 BAS:''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' >
#' O):+)IA9 #O8 :;A+D:D I+)8A-A#8ICA )8AD: ''''''''''''''''''''''''''''''''''''''''''''''''''''''''>
III. ESTIMATING THE SIZE OF THE PROCUREMENT MARKET IN AFRICA......7
Tale 1 ! "stimated #ange o$ Pulic Procurement "%penditures in A$rica ......................&
IV. OVERVIEW OF PUBLIC PROCUREMENT SYSTEMS IN AFRICA......................9
A' 8:SO+S:S )O )=: ?*:S)IO++AI8:''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 9
1. 'egal $rame(ork and procurement met)ods.................................................................*
2. +n$ormation and transparency aspects..........................................................................*
3. #ules o$ conduct and accountaility...........................................................................1,
4. Pre$erential treatment o$ local idders.......................................................................1,
5. +nstitutional and administrative arrangements...........................................................1,
-. .pgrading o$ )uman resources and capacity .............................................................1,
B' A8)ICIA+) D:SC8I)IO+S O# S:9:C):D 8OC*8:<:+) S@S):<S '''''''''''''''''''''''''''10
CO<<I)<:+)" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 11
S/.T0 A1#+2A ..............................................................................................................11
.GA34A .........................................................................................................................11
5"36A..............................................................................................................................11
BAS:9I+: I+S)I)*)IO+A9 CAACI)@" ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 11
S/.T0 A1#+2A...............................................................................................................11
.GA34A .........................................................................................................................12
9:0A9 A+D 8:0*9A)O8@ S)8*C)*8:" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 1/
G.+3"A............................................................................................................................12
S/.T0 A1#+2A...............................................................................................................13
O80A+ISA)IO+" ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 16
.GA34A..........................................................................................................................13
I<9:<:+)I+0 0*ID:9I+:S" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 14
S/.T0 A1#+2A...............................................................................................................14
)8AI+I+0" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 15
.GA34A..........................................................................................................................15
<:AS*8:<:+) O# 8:S*9)S" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 15
S/.T0 A1#+2A...............................................................................................................15
:VA9*A)IO+ A+D 8:VI:&" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 15
.GA34A..........................................................................................................................15
<ODI#ICA)IO+ O8 ABA+DO+<:+) AS +:C:SSA8@" '''''''''''''''''''''''''''''''''''''''''''''''''''''''''1>
5"36A ............................................................................................................................1-
V. THE ROAD TO REFORM..............................................................................................16
VI. CONCLUSION................................................................................................................18
2
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
I. I!"#$%&!'#
)hi$ paper 1ill di$cu$$ both do!e$tic and international i!perati(e$ for refor! of public procure!ent,
1ith $pecific infor!ation on the $tate of public procure!ent in $elected countrie$ in Africa'
)he public procure!ent $ector i$ often the large$t do!e$tic !arAet in le$$ de(eloped countrie$' A$ an
international agenc% pro(iding technical a$$i$tance, I)C ha$ a long hi$tor% helping countrie$ to de(elop
their e3port potential and i!pro(e i!port operation$ to lo1er co$t$ through i!pro(ed purcha$ing
techniBue$'
1
)he I)C e3perience in de(eloping countrie$ i$ that public procure!ent can account for up
to 50C-50C of i!port$' An% i!pro(e!ent$ in the public procure!ent $%$te! can ha(e a direct and
beneficial effect on the o(erall econo!ic $ituation of a countr%' And i!pro(e!ent$ are needed' One
!ea$ure of thi$ fact i$ the e!pha$i$ 1hich the &orld BanA and regional in$titution$ liAe the African
De(elop!ent BanA are placing on a$$i$ting de(eloping countrie$ to re(ie1 and re(i$e their procure!ent
$%$te!$' &ithin the Africa region, o(er one fourth of the countrie$ ha(e, or 1ill ha(e, an acti(e public
procure!ent i!pro(e!ent progra!'
ublic procure!ent $%$te!$ are the bridge bet1een public reBuire!ent$ -e'g' road$, ho$pital$, defence
need$, etc'. and pri(ate-$ector pro(ider$' 0o(ern!ent$ pro(ide good$ and $er(ice$ to !eet a (ariet% of
citi2en-need$' )he$e ite!$ are obtained fro! either internal go(ern!ent organi$ation$ -ho$pital$, public
1orA$ depart!ent$, etc. or fro! $ource$ e3ternal to the go(ern!ent in the pri(ate $ector -do!e$tic or
international $upplier$.' In thi$ $en$e, go(ern!ent$ traditionall% u$e their budget proce$$ to decide if
the% 1ill D!aAeD $o!ething in-hou$e or Dbu%D it fro! other$ through their procure!ent $%$te!, Eu$t a$ a
pri(ate co!pan% !aAe$ $i!ilar deci$ion$ in their enterpri$e re$ource plan' =o1e(er, unliAe pri(ate
$ector procure!ent -- public procure!ent i$ a bu$ine$$ proce$$ 1ithin a political $%$te! -- 1ith di$tinct
con$ideration$ of integrit%, accountabilit%, national intere$t and effecti(ene$$'
)he bu$ine$$ operation$ of go(ern!ent, a$ controlled b% public procure!ent $%$te!$, affect !an%
different ele!ent$ of $ociet%' #ir$t are the procuring entitie$ 1hich ha(e need$ for !aterial $upport -e'g'
road$, ho$pital$, de$A$ and educational $upplie$, etc'. to fulfil their de$ignated national !i$$ion$' )hen
there i$ the bu$ine$$ co!!unit% of actual or potential $upplier$ to $ati$f% the go(ern!entF$ identified
reBuire!ent$
/
' But, for the go(ern!ent agenc%G$ need$ to be properl% con$idered b% a $upplier, the%
!u$t be e3pre$$ed in clear ter!$, co!patible 1ith public policie$ in(ol(ing $uch area$ $uch a$
co!petition, $ocial and econo!ic goal$, and tran$parenc% of the ba$ic rule$ and procedure$'
rocure!ent action$ $hould encourage $upplier$ to (alue go(ern!ent bu$ine$$ and pro(ide $ati$factor%
Bualit%, $er(ice and price in good ti!e' )here are al$o profe$$ional a$$ociation$, acade!ic entitie$, and
public intere$t group$, 1hich ha(e i!portant (ie1$ in ho1 public !anage!ent in$titution$ are to
perfor!' )he general public i$ !ore liAel% to feel $ati$faction 1hen the% Ano1 that e3penditure$ !ade
through the public procure!ent $%$te! are econo!ical, rational and fair'
II. I()*"+!',*- .#" R*.#"(
A countr% !a% 1ant to undertaAe public procure!ent refor!$ to $upport e$$ential internal
ad!ini$trati(e i!pro(e!ent$, to help Bualif% for international financing fro! !ultilateral in$titution$ or
to help integrate a countr% into the !ultilateral trading $%$te!'
)he core a$pect$ of public procure!ent $%$te!$ in(ol(e getting the right ite! at the right ti!e, and at
the right price, to $upport go(ern!ent action$' But, Eu$t tr%ing to define the HrightH ite!,ti!e,price,etc'
lead$ into a (ariet% of public and pri(ate function$ and political deci$ion$ -e'g' $hould the ite! co!e
fro! pri(ate or public production $ource$, $hould a pre!iu! be paid to aid local !anufacturer$, etc'.'
1
For our purposes, public procurement encompasses the process of identifying the governments requirements through to
the completion of the contract.
2
Traditionally, a need translates into a procurement requirement. The government need may be to move transports across
a lake. The requirement under the contract may eventually be described as a bridge, or a ferry or a tunnel or another
solution to this need which the government has determined to be the optimum approach to meet the need.
3
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
&ithout a $eriou$ and $u$tained re(ie1 of $uch deci$ion$, polic% !aAer$ !a% find that their policie$ are
not being $upported -- or are actuall% being undercut fro! 1ithin the go(ern!ent !eant to $er(e the!'
0enerating $a(ing$ through procure!ent $%$te! i!pro(e!ent$ i$ done no1 al!o$t routinel% in the
pri(ate $ector, 1here the procure!ent function help$ co!panie$ to re$pond BuicAl% to !arAet change$'
A$ an e3a!ple, the t%pical co$t $tructure of a !anufacturing fir! i$ that for e(er% dollar earned, around
>0 cent$ i$ $pent on purcha$ed !aterial$, 15 cent$ on labour, 15 cent$ in o(erhead acti(itie$, and 10
cent$ in profit' If, through better !anage!ent of the purcha$ing function the co$t of purcha$ed
!aterial$ 1ere reduced b% 10C, it 1ould !aAe a $a(ing of > cent$ on e(er% dollar' )he re$ult 1ould be
a >C reduction in the total co$t of the fini$hed product' )he co!pan% could !aAe u$e of thi$ $a(ing b%
either reducing the $ale$ price b% >C to co!pete !ore effecti(el% in 1orld !arAet$ or it could increa$e
the co!pan%F$ profit fro! 10 cent$ to 1> cent$" a full >0C increa$eI )o achie(e the $a!e le(el of profit
1ithout reducing co$t$, $ale$ 1ould ha(e to increa$e b% the $a!e >0CI
It 1a$ not too long ago that the $ubEect of public procure!ent 1ould not get an% attention fro! Ae%
deci$ion-!aAer$ in 0o(ern!ent' It 1a$ con$idered an ad!ini$trati(e function too !undane to 1orr%
about' =o1e(er, $e(eral de(eloped countrie$ ha(e taAen $tep$ recentl% to re(i$e their public
procure!ent $%$te!$ to i!pro(e their efficienc% and generate $a(ing$' )he federal go(ern!ent of the
*nited State$ began a progra! to 8ein(ent 0o(ern!ent in 1994' One of it$ fir$t ta$A$ 1a$ to refor!
the la1$ of the public procure!ent $%$te! to !aAe it !ore efficient' 9iAe1i$e, the *nited Jingdo!
began a $tud% in 199K called :fficienc% in Ci(il 0o(ern!ent that ha$ re$ulted in $e(eral i!pro(e!ent$
for go(ern!ent' )he go(ern!ent of #rance i$ de(eloping reco!!endation$ that 1ill al$o i!pro(e the
efficienc% of it$ public procure!ent $%$te!' In all the$e ca$e$, billion$ of dollar$ ha(e been, or are
e3pected to be, $a(ed through i!pro(e!ent action$'
In addition to the general recognition that i!pro(e!ent$ in public procure!ent !anage!ent $%$te!$
1ill help add (alue to national budget$, $pecific international and national i!perati(e$ no1 e3i$t for
increa$ed attention to public procure!ent' A!ong the! are"
A. W#"/$ T"+$* O"0+'-+!'# I'!'+!',*-
)here are $e(eral international trade initiati(e$, 1hich 1ill focu$ on i!pro(ing public procure!ent
$%$te!$ in the %ear /000' )ho$e countrie$ that ha(e an organi$ed, $%$te!-1ide !anage!ent approach
to public procure!ent 1ill be able to !ore ea$il% identif% effecti(e national negotiating po$ition$'
=o1e(er, e(en 1here there i$ not %et a procure!ent polic%-!aAing,!anage!ent infra$tructure in place,
high le(el attention to the i$$ue can pro(ide a ba$i$ for better negotiation$ on the$e i$$ue$'
1. G#,*"(*! P"#&%"*(*! A0"**(*!
)he &orld )rade Organi$ation -&)O. 0o(ern!ent rocure!ent Agree!ent -0A. i$ a
(oluntar% agree!ent to e3tend !o$t-fa(oured-nation and national treat!ent rule$ to
go(ern!ent purcha$e$ of $pecified go(ern!ent agencie$' )he$e agencie$ are reBuired to
!aAe their purcha$e$ -1hich e3ceed $pecified thre$hold li!it$. b% in(iting tender$ 1hich are
open to participation of $upplier$ fro! other $ignator% countrie$' A $eparate action of
acce$$ion i$ needed to Eoin the 0A, 1hich in(ol(e$ negotiation$ 1ith all $ignatorie$ to
deter!ine co(erage of the Agree!ent' )here are pro(i$ion$ for de(eloping countrie$ that
pro(ide for $pecial and differential treat!ent' )hi$ could allo1 e3clu$ion of certain
product$ or $er(ice$ fro! the rule of national treat!ent for 1hich de(eloping countrie$ 1i$h
to continue to e3tend price preference$' *nder Article ;;IV'5 -b., the 0A !e!ber$ are
e3pected to conclude negotiation$ Dece!ber 1999 on i!pro(ing the Agree!ent and
Hachie(ing the greate$t po$$ible e3ten$ion of it$ co(erageH 1ith regard to the Special and
Differential )reat!ent for De(eloping Countrie$ under Article V of the Agree!ent'
1. W#"2'0 G"#%) # T"+-)+"*&3 ' G#,*"(*! P"#&%"*(*!
)he Singapore &)O <ini$terial Conference of Dece!ber 199> decided to e$tabli$h a
&orAing 0roup on )ran$parenc% in 0o(ern!ent rocure!ent to conduct a $tud% that could
lead to the de(elop!ent of ele!ent$ to include in an appropriate agree!ent on the $ubEect of
tran$parenc%' )he &orAing 0roup ha$ held $e(eral !eeting$ to acco!pli$h thi$ ta$A and i$
e3pected to produce it$ report before the end of the %ear' )hi$ report could $ignal the $tart
4
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
of a ne1 pha$e of 1orA to agree on the ele!ent$ of tran$parenc% in public procure!ent and
ho1 the% $hould be applied b% &)O !e!ber $tate$'
3. G**"+/ A0"**(*! # T"+$* ' S*",'&*-
Article ;III of the 0eneral Agree!ent on )rade in Ser(ice$ reBuire$ that there be
!ultilateral negotiation$ on go(ern!ent procure!ent in $er(ice$ under the agree!ent 1ithin
t1o %ear$ of it$ effecti(e date' )hi$ 1ill be ne3t %ear' Since the procure!ent of $er(ice$ i$
a fa$t gro1ing area of public procure!ent in !an% countrie$, an% change under 0A)S
could ha(e a $ignificant effect on !an% countrie$'
B. S%))#"! .#" A!'4C#""%)!'# E..#"!-
rocure!ent refor!$ are often a Ae% feature of anti-corruption effort$ and can help pro!ote good
go(ernance progra!$'
)ran$parenc% in public procure!ent i$ an i!portant !atter for all countrie$' )he !e!ber countrie$ of
the Organi$ation for :cono!ic Co-operation and De(elop!ent -O:CD. ha(e recentl% focu$ed on
i!proper, 1a$teful and corrupt acti(itie$ in go(ern!ent, including public procure!ent' De(eloped
countrie$ ha(e e$tabli$hed (ariou$ !ean$ to create and $u$tain tran$parenc%' In$titutional checA$ and
control$ are liAe1i$e needed in de(eloping countrie$ and econo!ie$ in tran$ition'
Corruption de$er(e$ $pecial attention becau$e it 1orA$ in in$idiou$ 1a%$' It tend$ to under!ine the
1hole fabric of econo!ic and political life' )hu$, it i$ of e3tre!e i!portance to e$tabli$h and $u$tain
correct beha(iour in all procuring entitie$' Corruption, a$ defined b% the &orld BanA
6
, i$ the abu$e of
public office for pri(ate gain' Such beha(iour b% per$on$ concerned 1ith the procure!ent proce$$ often
lead$ to econo!ic lo$$e$ for the public' )hu$, !an% lo$e for the benefit of a fe1' Often there i$ $o!e
for! of collu$ion bet1een the purcha$ing and $elling $ide' 8e$pon$ible official$ on the contracting $ide
reBue$t -- or are induced -- to accept gratuitie$ fro! bidder$ or contractor$ to !aAe fa(ourable a1ard
deci$ion$' Such influence in the deci$ion-!aAing and e3ecuti(e proce$$e$ of a countr% ha$ legal,
ad!ini$trati(e and econo!ic co$t$'
Al$o, !arAet-ba$ed $%$te!$ 1orA be$t 1hen con$tructi(e pre$$ure e3i$t$ to change and i!pro(e pricing,
Bualit%, or perfor!ance of a product, or to other1i$e $ati$f% cu$to!er need$' If a co!petitor arrange$
to !ini!i$e !arAet pre$$ure$ b% rel%ing on per$onal contact$, bribe$ or other !ean$ to HinfluenceH the
$%$te!, both partie$ are di!ini$hed' #ir$t of all, the public $ector -bu%er. 1ill !o$t liAel% recei(e a le$$
$ati$factor% product to !eet the public need at a price not in Aeeping 1ith !arAet force$' Second, the
contractor -$eller. lo$e$ initiati(e and energ% to !aAe it$ product or $er(ice !ore co!petiti(e -1ith
con$eBuent di$tortion$ of internal !anage!ent and re$ource-allocation deci$ion$, $uch a$ the le(el of
re$earch and de(elop!ent actuall% needed to !aintain !arAet $hare in the global !arAetplace.'
)he publicG$ tru$t in go(ern!ent to operate efficientl% on it$ behalf i$ al1a%$ being te$ted' :(en 1ith
the $tronge$t control$ and the highe$t intention$, an organi$ation can $uffer a breech of tru$t due to
$elfi$h action$ of indi(idual$' )he e3i$tence of $uch breeche$ 1ill not nece$$aril% de$tro% the $%$te!,
although failure to e3po$e the 1rongdoing and taAe correcti(e action 1ill, o(er the long run'
C. I'!'+!',*- #. I!*"+!'#+/ F'+&'0 I-!'!%!'#-
)he &orld BanA i$ a$$i$ting countrie$ to refor! procure!ent procedure$ and $trea!line the! to
confor! to internationall% acceptable principle$, $uch a$ tho$e de(eloped 1ith the *+ Agencie$ and
<ultilateral De(elop!ent BanA$' )he &orld BanA $%$te!aticall% undertaAe$ countr% procure!ent
a$$e$$!ent re(ie1$ to $tud% the national procure!ent procedure$ and practice$ of their borro1ing
countrie$' )he BanA al$o $upport$ the adoption b% it$ borro1ing countrie$ of legi$lation and regulation$
ba$ed on the *+CI)8A9 <odel 9a1 for ublic rocure!ent'
rocure!ent i$ al1a%$ identified a$ a !aEor proble! area, 1here cu!ber$o!e procedure$ $lo1 do1n
proEect e3ecution' #or the &orld BanA, good regulation$ are indi$pen$able and $hould be characteri$ed

0elping 2ountries 2omat +mproper7 (aste$ul and corrupt7 o(ert% 8eduction and
:cono!ic <anage!ent +et1orA, )he &orld BanA, &a$hington, DC Septe!ber 1995' age K
5
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
b% eBuabilit%, tran$parenc% and predictabilit%' rocure!ent $hould not be a bureaucratic proce$$, but a
fra!e1orA for profe$$ional$ to organi$e their 1orA and deli(er their $er(ice$ efficientl%'
)he African De(elop!ent BanA i$ co!!itted to a$$i$t it$ !e!ber countrie$ in the
i!ple!entation of $tructural refor!$ to i!pro(e public procure!ent $%$te!$ a$ 1ell a$ the
de(elop!ent of intra-Africa trade' )he ADBF$ approach to public procure!ent refor! i$ to
1orA clo$el% 1ith recipient go(ern!ent$ to encourage greater in(e$t!ent$ in training to create
a corp$ of 1ell-trained procure!ent $peciali$t$'
D. E5!*"+/ I,*-!(*! +$ O!6*" R*-#%"&* N**$-
)ran$parent procedure$ can help attract !ore in(e$t!ent b% lo1ering ri$A' A tran$parent procure!ent
$%$te! allo1$ co!peting pri(ate enterpri$e$ to Eudge the ri$A of doing bu$ine$$ 1ith the go(ern!ent'
)he% can !aAe !ore reali$tic econo!ic in(e$t!ent deci$ion$ 1here go(ern!ent procure!ent policie$
are in line 1ith good co!!ercial practice and public accountabilit% reBuire!ent$'
International organi$ation$ and e3ternal donor$ al$o ha(e an intere$t in public procure!ent, $ince
control of e3penditure$ through an accountable !ean$ i$ e$$ential in e3plaining to their legi$lature$ and
Board$ of Director$ ho1 de(elop!ent a$$i$tance fund$ 1ere u$ed' A$ foreign a$$i$tance budget$ are
reduced in !an% donor countrie$, there 1ill be !ore pre$$ure to en$ure that recipient countrie$ are
1i$el% $pending increa$ingl% $carce donor re$ource$' )ho$e countrie$ 1ith inadeBuate control$ 1ill face
increa$ing difficultie$ 1ith donor$'
If a countr%G$ public procure!ent and accounting procedure$ i!pro(e, it could allo1 donor$ to grant
untied aid to gi(e !ore fle3ibilit% in ho1 recipient countrie$ $pend the contribution$' )he need for
accountabilit% nor!all% lead$ donor$ to i!po$e $pecific procure!ent rule$ on recipient countrie$ to
en$ure that generall% accepted procure!ent practice$ are being follo1ed' )hi$ can ha(e the effect of
$plitting a countr%F$ profe$$ional procure!ent 1orAforce into $!all, le$$ efficient unit$ a$ the%
$peciali$e in $pecific procedure$ agreed 1ith the donor$' A !ore co!!on donor approach to
procure!ent rule$ could ea$e the burden on a countr%G$ $carce per$onnel re$ource$ and i!pro(e internal
and e3ternal efficiencie$' =o1e(er, thi$ i$ unliAel% to happen unle$$ there i$ a high le(el of co!!it!ent
b% the go(ern!ent to taAe the refor! proce$$ $eriou$l%, interact 1ith procure!ent e3pert$, and
i!ple!ent proper deci$ion$'
E. S%))#"! .#" !6* D#(*-!'& S%))/'*" B+-*
I!pro(ed techniBue$ for bu%ing good$ and $er(ice$ u$ing !odern Bualit% $tandard$ and bu$ine$$
practice$ can help i!pro(e the efficienc% of local $upplier$ a$ the% co!pete for go(ern!ent contract$'
Such i!pro(e!ent$ in efficienc% can enhance trade pro$pect$ b% !aAing the$e $upplier$ !ore
acceptable (endor$ to global bu$ine$$ partner$' Inefficient go(ern!ent $upplier$, on the other hand, not
onl% pro(ide poor (alue to their national go(ern!ent, but 1ill be unliAel% to engage in an% !eaningful
pri(ate $ector trading partner$hip$ a$ the force$ of global co!petition reduce $ale$ opportunitie$' #or
go(ern!ent$, $uch efficiencie$ can directl% tran$late into the acBui$ition of additional good$ and $er(ice$
to !eet national need$, funding of higher priorit% progra!$, or e(en reduced ta3e$ on the public, 1hich
aid de(elop!ent'
F. P#!*!'+/ .#" E5)+$*$ I!"+4A."'&+ T"+$*
)raditionall%, about t1o third$ of Sub-Saharan AfricaF$ e3port$ are bound for indu$triali$ed countrie$'
In return, the region purcha$e$ around >0C of it$ i!port$ fro! the$e nation$' Sub-Saharan AfricanF$
i!port$ totalled *SL 5> billion in 1995, 5C of 1hich 1ere intra-regional' I)C i$ 1orAing 1ith partner
countrie$ to boo$t intra-regional trade a$ a !ean$ of trade pro!otion and, con$eBuentl%, the facilitation
of regional de(elop!ent $uch a$ the Co!!on <arAet for :a$tern and Southern Africa -CO<:SA.
4
'
CO<:SA i$ Eu$t one of $e(eral trade agree!ent$ 1ithin Africa, but their approach to regional public
procure!ent refor! !a% be of intere$t to other group$' CO<:SA ai!$ to full% integrate the countrie$
of ea$tern and $outhern Africa into an econo!ic union through trade and in(e$t!ent' CO<:SAG$
i!!ediate ai! i$ to achie(e a #ree )rade Area b% October /000 and a Cu$to!$ *nion in the %ear /004'
!
"#$%&' member states are( Angola, Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar,
Malai, Mauritius, !amibia, Randa, "eychelles, "udan, "a#iland, $an#ania, %ganda, &ambia and &imbabe
6
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
Currentl%, the !e!ber$ of the regional grouping are e3tending preferential dut% rate$ for trade a!ong
the!$el(e$' )ariff reduction i$ ad(anced, 1ith !o$t !e!ber$ e3tending tariff preference$ to
CO<:SA-originating product$ ba$ed on K0C or 90C tariff reduction of the national tariff$' A$ the
region get$ !ore integrated and trade !ore liberali$ed, the need to en$ure fair and open trade 1ill be
greater' CO<:SA ha$ deter!ined that in order to enhance co!petition in both pri(ate and public
procure!ent arrange!ent$, it i$ e$$ential that regulation$ and procure!ent procedure$ be har!oni$ed
acro$$ the #ree )rade Area' Along$ide the refor! and har!oni$ation of public procure!ent, CO<:SA
i$ in the proce$$ of for!ulating a regional co!petition polic% to guard again$t cro$$-border collu$ion,
!onopoli$tic and other unfair trade practice$' 8efor!$ to public procure!ent in CO<:SA $hall al$o
taAe the$e principle$ into account'
III. E-!'(+!'0 !6* S'7* #. !6* P"#&%"*(*! M+"2*! '
A."'&+
=o1 big i$ the public procure!ent !arAetplaceM )hi$ i$ a difficult Bue$tion to an$1er 1ith an%
certaint% becau$e $tati$tic$ are not !aintained in an ea$il% integrated fa$hion' Anecdotall%, 1e Ano1 the
!arAet i$ Buite large' )he :uropean *nion e$ti!ate$ that the public procure!ent !arAetplace at all
le(el$ of go(ern!ent in !e!ber $tate$ in(ol(e$ about L1,000 billion annuall%' )he *nited State$ $pend$
about L/00 billion annuall% at the federal le(el 1hile another L400 billion i$ e$ti!ated to be $pent at the
$tate and local le(el'
Deter!ining the le(el of procure!ent in !o$t countrie$ i$ ine3act at be$t' <o$t go(ern!ent$ do not
Aeep good $tati$tic$' ublic procure!ent i$ decentrali$ed in !an% countrie$ a!ong !an% !ini$trie$ and,
increa$ingl%, bet1een central and $ub-central le(el$ of go(ern!ent' Becau$e of the difficult% in Eudging
the $cope of the !arAetplace, I)C in(ited Dr' #ederico )rionfetti of the 9ondon School of :cono!ic$ to
build on earlier re$earch on public procure!ent !arAet$ to help $i2e the potential $cope of public
procure!ent'
De$pite the difficultie$ in !ea$ure!ent, international co!pari$on co(ering a 1ide $et of countrie$ i$
po$$ible 1hen one con$ider$ central go(ern!ent procure!ent onl%' )rionfetti found that the $i2e of
central go(ern!ent purcha$e$ (arie$ bet1een fi(e percent -5C. and eight percent -KC. of 0D for !o$t
indu$triali$ed countrie$' #or the <iddle :a$t and Africa, the !agnitude of central go(ern!ent
purcha$e$ range$ fro! bet1een nine percent -9C. and thirteen percent -16C. of 0D'
)hi$ 1orA ha$ pro(ided a !ean$ for e$ti!ating the total public procure!ent ba$e for Africa, 1hen the
range of percentage$ are applied to Ano1n e$ti!ate$ of 0D' *$ing the no!inal 0D figure$
5
a(ailable
in the &orld BanA publication DAfrican De(elop!ent Indicator$D, )able 1 indicate$ a range of L60 to
L46 billion 1hich could be a(ailable in the public procure!ent !arAetplace in Sub-Sahara Africa'
&hile South Africa and +igeria do!inate the total 1ith fro! L1> N L/6 billion of thi$ a!ount, there
$till could be a $ignificant L16 - L19 billion a$$ociated 1ith the re!aining countrie$'
)
Table 2*). +ross domestic product, nominal, 'frican -evelopment .ndicators 1//01//. 2orld 3ank. 2ashington
7
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
T+8/* 1 4 E-!'(+!*$ R+0* #. P%8/'& P"#&%"*(*! E5)*$'!%"*- ' A."'&+
1997GDP 9 E-!'(+!*$
9: /*,*/
E-!'(+!*$
13: /*,*/
M'//'#- #. U.S.;< &%""*! )"'&*-
S%84S+6+"+ A."'&+ 319<731 19<676 =1<86>
:3cluding South Africa 1??<637 18<?>7 16<?83
:3cluding South Africa O +igeria 1=8<=8= 13<36= 19<3?3
Angola 7<661 69? 996
Benin 1<137 191 178
Bot$1ana =<696 =13 61?
BurAina #a$o 1<==1 11? 317
Burundi 1<137 111 161
Ca!eroon 9<11> 81? 1<18>
Cape Vert =16 38 >>
Central African 8epublic 1<?19 91 131
Chad 1<6?3 1== 1?8
Co!oro$ 19= 17 1>
Congo, De!' 8ep' Of 6<1?1 >=9 793
Congo, 8ep' Of 1<198 1?7 199
CPte dGI(oire 1?<1>1 913 1<333
DEibouti >?? => 6>
:Buatorial 0uinea =87 == 63
:ritrea 6=3 >8 8=
:thiopia 6<381 >7= 83?
0abon ><1>3 =6= 67?
0a!bia, )he =?7 37 >3
0hana 6<761 6?9 879
0uinea 3<998 36? >1?
0uinea-Bi$$au 16> 1= 3=
Jen%a 1?<1=? 911 1<331
9e$otho 9>? 86 11=
9iberia N#! A,+'/+8/*
<adaga$car 3<>>1 31? =61
<ala1i 1<=1= 118 31>
<ali 1<>31 118 319
<auritania 1<?98 99 1=3
<auritiu$ =<398 396 >71
<o2a!biBue 1<7>3 1=8 3>8
+a!ibia N#! A,+'/+8/*
+iger 1<8>8 167 1=1
+igeria >1<1>3 =<69= 6<78?
81anda 1<863 168 1=1
SQo )o!R and rincipe == = 6
Senegal =<>>= =1? >91
Se%chelle$ >38 =8 7?
Sierra 9eone N#! A,+'/+8/*
So!alia N#! A,+'/+8/*
South Africa 119<?9= 11<618 16<781
Sudan 1?<?>? 9?> 1<3?7
S1a2iland 1<1=1 111 161
)an2ania 6<7?7 6?= 871
)ogo 1<=7= 133 191
8
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
*ganda 6<>71 >91 8>=
Sa!bia =<?>1 36> >17
Si!bab1e 8<9?7 8?1 1<1>8
N#"!6 A."'&+ 173<>18 1><617 11<>6?
Algeria =><997 =<1=? ><98?
:g%pt, Arab 8ep' 7><=81 6<793 9<813
9ib%a N#! A,+'/+8/*
<orocco 33<1>8 1<993 =<31=
)uni$ia 18<791 1<691 1<==3
A// A."'&+ >?=<3>7 =><391 6><>66
IV. O,*",'*@ #. P%8/'& P"#&%"*(*! S3-!*(- ' A."'&+
0i(en the $ignificance of the re$ource$ controlled through public procure!ent $%$te!$ and the need for
i!pro(e!ent, the &orld BanA, the African De(elop!ent BanA, the *nited +ation$ De(elop!ent
rogra!!e -*+D. and I)C agreed to co-$pon$or a Conference on ublic rocure!ent 8efor! in
AbidEan, CPte dFI(oire, -hereafter referred to a$ the AbidEan Conference. fro! 60 +o(e!ber to 4
Dece!ber 199K' )he conference 1a$ attended b% procure!ent official$ fro! !ore than 60 African
countrie$, a$ 1ell a$ donor$ and other in$titution$ concerned 1ith public procure!ent 1orld-1ide' )he
AbidEan Conference helped to $ti!ulate a fre$h looA at procure!ent in !an% of the countrie$' )hrough
Bue$tionnaire$, briefing$ and di$cu$$ion, a repre$entati(e i!age of public procure!ent operation$ in
$elected African countrie$ e!erged fro! the Conference'
)he Conference pro(ided infor!ation and in$ight into procure!ent $%$te!$ in Africa in t1o 1a%$"
1' )hrough re$pon$e$ to an I)C Bue$tionnaire pro(ided to participant$ prior to the Conference
>
T and,
/' )hrough direct pre$entation$ or inter(ention$ at the Conference b% participant$'
A. R*-)#-*- !# !6* A%*-!'#+'"*
)o help $ti!ulate a dialog 1ithin the countrie$ of Africa on the role and i!portance of public
procure!ent, I)C de(eloped a Bue$tionnaire to obtain $o!e in$ight into the current characteri$tic$ of
participant$G procure!ent $%$te!$' )he &orld BanA, through it$ Countr% rocure!ent A$$e$$!ent
8e(ie1$, 1a$ the $ource for !an% of the Bue$tion$' )he follo1ing highlight$ of re$pon$e$ pro(ide
in$ight into the general $tate of !atter$ affecting public procure!ent in Africa toda%'
1. L*0+/ ."+(*@#"2 +$ )"#&%"*(*! (*!6#$-
)he re$pon$e$ indicated that in a nu!ber of State$, the legal fra!e1orA i$ unclear and !a% not
be co!prehen$i(e enough for effecti(e !anage!ent of the $%$te!' So!e State$ ad!itted that
their current $%$te! precluded inno(ati(e techniBue$, $uch a$ con$ign!ent $tocAing and
$trategic alliance$' *pdate$ !a% be needed al$o to enact rule$ go(erning i!ple!entation of
Hbuild-operate-tran$ferH t%pe of pri(atel% financed infra$tructure proEect$' Se(eral State$
$hould update regulation$ and the organi$ation for the !anage!ent of public procure!ent,
taAing into account the *+CI)8A9 <odel 9a1 on rocure!ent
5
' So!e re$pon$e$ i!plied
potential proble!$ in"
crafting $pecific bid e(aluation criteriaT
the lacA of procedure$ for bid e(aluationT
1. I.#"(+!'# +$ !"+-)+"*&3 +-)*&!-
Se(eral $tate$ indicated"
a failure in indi(idual procure!ent proceeding$ to pre-deter!ine and di$clo$e in
ad(ance the a1ard criteriaT and
the i!po$ition of di$cretion b% the concerned <ini$ter
4
The questionnaire results were summarised by $r. &imeon &ahaydachny, formerly of 56".T7'8.
9
5nited 6ations "ommission on .nternational Trade 8aw :56".T7'8; $odel 8aw on <rocurement of +oods, "onstruction
and &ervices with +uide to %nactment. 5nited 6ations, 6ew =ork, 1//)
9
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
that procure!ent rule$ are not al1a%$ follo1ed in practiceT
that the application of co!petiti(e and tran$parent !ethod$ of procure!ent need$
to be broadenedT and
that infor!ation about public procure!ent perfor!ance -e'g', nu!ber of bid$
recei(ed, nu!ber of contract$ a1arded, na!e$ of $ucce$$ful. i$ u$uall% not
a(ailable'
3. R%/*- #. &#$%&! +$ +&&#%!+8'/'!3
&hile rule$ $ee! to be in place, the effect of their i!ple!entation can be Bue$tioned' So!e
State$ reported not ha(ing an% conflict of intere$t rule$ at all' Onl% a fe1 State$ reported that
the% had anti-corruption pro(i$ion$ in place in (ariou$ t%pe$ of legi$lation -e'g', cri!inal and
ci(il code$, anti-corruption act$, ci(il $er(ice la1$.' :nforce!ent organ$ !entioned included
o!bud$!en, anti-corruption bureau$, State auditor$ and co!ptroller$' One re$pon$e pointed to
in$ufficient re$ource$ for policing' Se(eral State$ reported a lacA of anti briber% la1$ -including
$pecific rule$ concerning briber% of 0o(ern!ent official$., or of enforce!ent of the la1$ that
e3i$t'
=. P"*.*"*!'+/ !"*+!(*! #. /#&+/ 8'$$*"-
<o$t State$ reported appl%ing $o!e $ort of preference in fa(our of their o1n national$ or
national good$' Difference$ appear to e3i$t in the a!ount of the preference, 1hether it 1a$
applied a$ a !andator% procedure or at the option of the procuring entit% or other authorit% in
planning indi(idual procure!ent proceeding$, and 1hether the la1 or regulation$ $pecified
particular categorie$ of national bidder$' So!e re$pon$e$ related to $ub-categorie$ of national$
eligible for preferential treat!ent, in particular $!all and !ediu! $i2ed enterpri$e$'
>. I-!'!%!'#+/ +$ +$(''-!"+!',* +""+0*(*!-
In al!o$t all ca$e$ reported, the central procure!ent authorit% i$ in(ol(ed operationall% in the
conduct of procure!ent proceeding$' Such operational acti(it% range$ fro! $itting on
e(aluation co!!ittee$, $er(ing a$ the adEudicator bod%, or procuring countr%-1ide or co!!on
u$e ite!$' )hi$ create$ an o(erlap bet1een the operational and regulator% function$ to the
detri!ent of regulator% independence' In effect, the regulator and regulated beco!e one, 1ith
the regulator% function $ubEect to pre$$ure and potential conflict$ of intere$t'
6. U)0"+$'0 #. 6%(+ "*-#%"&*- +$ &+)+&'!3
?uite a fe1 State$ re$ponded that there 1ere no particular profe$$ional reBuire!ent$' Other
State$ re$ponded b% identif%ing a !ini!u! ci(il $er(ice ranA reBuired for perfor!ance of
procure!ent function$' So!e other re$pon$e$ identified a fa!iliarit% 1ith procure!ent rule$
and procedure$, or Hon the Eob trainingH, a$ the $tandard' +o !ention 1a$ !ade of an%
uni(er$it% degree reBuire!ent or $tud% bacAground in the field$ of purcha$ing or $uppl% and
!aterial$ !anage!ent'
B. P+"!'&')+! D*-&"')!'#- #. S*/*&!*$ P"#&%"*(*! S3-!*(-
)he Conference allo1ed the participant$ to de$cribe for the!$el(e$ their pre$ent plan$ and need$ for
building (alue into their national budget$ through i!pro(ed procure!ent operation$' Se(eral
participant$ at the Conference tooA the opportunit% to de$cribe their effort$ in refor! of their public
procure!ent $%$te!$' )hi$ infor!ation i$ u$eful in it$elf a$ a de$cription b% the countrie$ the!$el(e$ of
1hat the% feel i$ i!portant' =o1e(er, $ince there 1a$ no for!at or order to the pre$entation$, placing
the$e $elected pre$entation$ 1ithin a logical fra!e1orA for re(ie1 of public !anage!ent initiati(e$ 1ill
enhance our under$tanding of ho1 the$e acti(itie$ can fit 1ithin an o(erall proce$$ of refor!' )he
fra!e1orA 1e are u$ing belo1 for thi$ purpo$e 1a$ de(eloped b% I)C a$ part of our 1orA in preparing
a guide
K
on the u$e of public procure!ent to a$$i$t $!all and !ediu! enterpri$e$ -S<:$.' After each
of the nine ele!ent$ of the polic% re(ie1 fra!e1orA, there are e3a!ple$ of $pecific te3t ba$ed on the
report of proceeding$ of the AbidEan Conference that help e3pand the point of the ele!ent under
di$cu$$ion' Such a fra!e1orA could be u$eful in helping to articulate a nationG$ po$ition and
negotiation obEecti(e in(ol(ing go(ern!ent progra!$'
0
&$% and %>port*8ed +rowth( 're there 7oles for <ublic <rocurement <rogrammes?, .nternational Trade "entre, +eneva
1///. <rinciple 'uthor * -r. @ohn 8inerelli, 'berstwyth 5niversity.
10
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
C#(('!(*!B
)he Ae% a$pect$ of co!!it!ent are that it $hould be credile and consensual. )he !aEor
co!ponent$ of building credible co!!it!ent in a con$en$ual !anner depend (er% !uch on the
countr% in Bue$tion' But, the% include e$tabli$hing a $ound legal and polic% en(iron!ent,
identif%ing potential participant$, di$$e!inating infor!ation, con$ulting 1ith intere$ted partie$,
and collaborating a!ong the go(ern!ent, trading partner$, international financial in$titution$
and indu$tr% group$'
SOUTH AFRICA
+n 1**47 t)e ne( Government o$ Sout) A$rica identi$ied an urgent need $or pulic sector
procurement re$orm. A$ter an initial revie( o$ t)e regulatory environment7 t)e
government undertook a $undamental revie( o$ t)e entire pulic procurement system7
discussing t)e su8ect (it) various stake)olders. +n 1eruary 1**57 t)is resulted in a
8oint initiative o$ t)e 9inistry o$ Pulic Works and t)e 9inistry o$ 1inance to trans$orm
pulic sector procurement policy and systems in t)e country'
UGANDA
Pulic procurement re$orm in .ganda is no( part o$ t)e policy package to eradicate
poverty in t)e country t)roug) t)e re!orientation o$ government spending in critical
sectors. +n order to ac)ieve and maintain greater savings7 pulic procurement re$orm
(ill e made e$$ective at t)e central and district levels in con8unction (it) t)e anti!
corruption e$$ort led y t)e President:s o$$ice'
KENYA
A team (as estalis)ed in 1**& $or pulic procurement re$orm. T)e national steering
committee participating in t)e policy revie( is composed o$ )ig)!level o$$icials7 including
t)e Permanent Secretaries in 1inance7 Pulic Works and 0ousing7 "ducation7 #esearc)
and Tec)nical Training7 2ommissioner General o$ 5enya7 +nspector General7 0eads o$
Post and Telecommunication7 and t)e to(n clerk o$ t)e 2ity o$ 3airoi. T)e World ;ank
is also represented on t)e team.
#e$orms $ocus on addressing procurement la(s <e.g.7 codi$ying la(s and ensuring t)at
tari$$ and procurement la(s are streamlined toget)er=> estalis)ing appropriate
procurement institutions and entities> and setting!up ade?uate and timely evaluation and
monitoring mec)anisms. Wit) an 1& to 24 mont) time $rame7 re$orms (ill e su8ect to
t)e approval and passage o$ legislation o$ t)e Parliament. T)e estimated udget
appropriation $or t)is e$$ort is @4,,7,,,7 (it) sta$$ provided $rom t)e 9inistry o$
1inance.
T)e re$orms are to create a system t)at includes among ot)ers7 proper delegation o$
aut)ority7 incentives7 procurement t)res)olds7 planning7 and supplies manuals.
B+-*/'* '-!'!%!'#+/ &+)+&'!3B
=o1 1ell a go(ern!ent can deli(er re$ult$ depend$ in large part on it$ abilit% to !onitor, audit
and enforce go(ern!ent polic% and progra!!e effecti(ene$$' It !a% be difficult or
i!practicable to achie(e (alue through the procure!ent $%$te! if reBuired go(ern!ent
in$titution$ are ab$ent or 1eaA' A countr% could Hba$elineH it$ in$titutional capacit% to de$cribe
it$ current $%$te! and co!pare thi$ again$t e3i$ting !odel$ in other de(eloping or de(eloped
countrie$' A ba$eline pro(ide$ infor!ation on 1hat a go(ern!ent can reali$ticall% do and
e3pect' &hat can be acco!pli$hed and the 1a% it i$ acco!pli$hed depend on the in$titution$ in
a gi(en countr%'
SOUTH AFRICA
A preliminary revie( o$ t)e e%isting procurement policies and systems indicated a
ske(ed nature o$ tender a(ards to t)e larger7 more estalis)ed companies t)at otained
most o$ t)e pulic sector contracts. 1urt)er7 t)e participation o$ small and medium
enterprises in pulic sector procurement7 and in particular t)ose enterprises o(ned and
11
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
controlled y previously disadvantaged individuals <i.e. persons ()o did not )ave
political $ranc)ise prior to t)e 1**4 elections= (as negligile. To address t)ese
prolems7 an interim improvement plan (as developed $or s)ort!term e$$ect and a green
paper on pulic procurement conceived to deal (it) longer!term issues.
UGANDA
T)e Government estalis)ed an inter!ministerial Task 1orce on Pulic Procurement
#e$orm in 1**& under t)e leaders)ip o$ t)e 9inister o$ 1inance. A$ter considerale
discussion (it) stake)olders in t)e pulic and private sector7 t)e Task 1orce identi$ied
several de$iciencies in t)e procurement systemA
Procurement and Trade PracticesA T)e use o$ international trade terms is a ne(
p)enomenon t)at )as not taken root in t)e usiness community o$ .ganda. 1or e%ample7
+32/T"#9S
*
are generally not used and understood y t)e private sector. 1urt)er7
trade practices in pulic procurement are c)aracterised y malpractice7 suc) as over!
invoicing and inade?uate o$$icial documentation>
1inancial 1rame(orkA 0ig) interest rates )inder access to credit. ;idders also $ind t)e
re?uirement $or id onds at 1,B o$ t)e $ace value o$ t)e id to e too )ig)7 preventing
t)em $rom participating in t)e tenders>
Procurement Training System and +nstitutionsA T)e procurement pro$ession is currently
not part o$ t)e 2ivil Service7 and is not )eld in )ig) regard in t)e country. +n addition7
in!service procurement training is not availale domestically7 ()ic) $urt)er in)iits
development o$ a core o$ procurement pro$essionals> and
Procurement ProceduresA Goods7 services or (orks are otained t)roug) pulic
advertising locally and internationally. 0o(ever7 t)ere are no standard contract
documents $or use in procuring goods7 (orks or ot)er types o$ contracts. T)e system is
also segmented7 (it) $unctions and decisions decentralised7 and (it) di$$ering rules
applying to various entities. T)ere is no single unit (it) t)e responsiility to issue7
update7 educate and monitor compliance (it) pulic procurement guidelines.
L*0+/ +$ "*0%/+!#"3 -!"%&!%"*B
)he Aind$ of legal in$tru!ent$ that 1ill be reBuired to i!ple!ent the public procure!ent
progra!!e 1ill depend on the countr% in Bue$tion' ublic procure!ent rule$ are t%picall%
i!ple!ented in legi$lation pro!ulgated b% a legi$lature in the for! of a $tatute or code' So!e
countrie$ 1ill adopt regulation$ to pro(ide additional detail to i!ple!ent the legi$lation'
Depending on the legal $%$te!, regulation !a% or !a% not reBuire authori$ation in legi$lation or
in a con$titution' In $o!e $tate$, an e3ecuti(e branch of the go(ern!ent, through circular$,
guidance or e3ecuti(e order$, !a% i!ple!ent procure!ent progra!!e$ 1ith a !ini!u! of
legi$lati(e authorit%'
GUINEA
+n Guinea7 t)e main elements o$ pulic procurement re$orm (ere undertaken (it)
t)e )elp o$ t)e World ;ank. #e$orms (ere primarily introduced to increase
transparency in t)e pulic procurement system and responsile agencies. +n
1**&7 a ne( pulic procurement code (as enacted to correct s)ortcomings in t)e
system. 0ig)lig)ts o$ t)is ne( code areA
1oster more open competition to uy more and etter re?uirements $or less
money. Wit) greater openness7 re$orms are e%pected to result in more
transparency and e$$iciency in t)e system. A streamlined process7 using
/
.nternational 7ules for the interpretation of trade terms published by the .nternational "hamber of "ommerce, <aris,
France :publication number !4A;
12
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
scienti$ic evaluation criteria7 allo(s greater control o$ e%penses and limits
t)e use o$ direct purc)ase.
"mp)asis on economic development ! to $acilitate Guinean enterprises in
t)e procurement process t)roug) various modalities7 suc) as allo(ing
S9"s to compete y uilding in sucontracting components and (aiver
e%emptions7 otaining guarantees $rom anks7 and s)ort!listing.
+mprove in$ormation dissemination and en)ance transparency C includes
advertising in pulic procurement 8ournal and issuance o$ general
procurement notices.
2lari$y aut)ority o$ procurement department and ministries to reduce
$ragmentation.
#educe t)e numer o$ tender oards to decrease delay and opportunities
$or corruption.
Streamline various approval levels to t)e arest minimum to $acilitate
accountaility y assigning speci$ic responsiility to individuals at eac)
level.
"ncourage sanctions ! $or misconduct and malpractice.
SOUTH AFRICA
/ne interesting top!do(n approac) to good governance can e $ound in Sout) A$rica. T)is country
)as included t)e need $or $air pulic procurement practices in t)e nationDs constitution.
'(
W)ile t)is
is uni?ue among t)e A$rican countries ()ic) participated in t)e +T2 survey7 Sout) A$rica:s emp)asis
on ensuring t)at its system o$ contracts is E$air7 e?uitale7 transparent7 competitive and cost
e$$ectiveE provides a modern e%ample o$ t)e importance o$ pulic procurement.
O"0+'-+!'#B
So!e public bod% or co!bination of public bodie$ ha$ to Ho1nH the progra!!e' )o the e3tent
that the public procure!ent $%$te! i$ u$ed to i!ple!ent other public progra!!e$, liAe
international trade pro!otion, conflict$ 1ith efficienc% or (alue for !one% goal$ a$ repre$ented
in indi(idual !ini$trie$ !a% ari$e and a di$tinct public bod% !a% be appropriate' )he Aind$ of
organi$ation$ that are appropriate and the po1er$ that the% 1ill po$$e$$ 1ill depend on the
ba$eline of in$titutional capacit% for a gi(en countr%, and on the re$ource con$traint$ 1ithin the
countr%G$ $%$te! of public finance and go(ernance'
UGANDA
T)e Task 1orce $or Pulic Procurement #e$orm )as recommended t)at a 3ational
Pulic Procurement .nit e estalis)ed as t)e central organ o$ state
administration on all matters o$ pulic procurement7 includingA
1= presenting an annual report to t)e 2ouncil o$ 9inisters concerning t)e
1A
4 &ection 219 of the "onstitution of the 7epublic of &outh 'frica, 1//4 :'ct no. 1A0 of 1//4; reads as follows(
2hen an organ of the state in the national, provincial or local sphere of government, or any other institution identified in
national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable,
transparent, competitive and cost effective. &ubsection :1; does not prevent the organs of state or institutions referred to in
that subsection from implementing a procurement policy providing for(* categories of preference in the allocation of
contracts, and the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.
:; 6ational legislation must prescribe a framework within which the policy referred to in subsection :2; may be
implemented.
13
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
$unctioning o$ t)e pulic procurement system>
2= preparing dra$ts o$ Acts and regulations concerning pulic procurement>
3= disseminating7 at t)e re?uest o$ and in co!ordination (it) appropriate
9inisters7 t)e general conditions and $orms o$ contracts $or pulic procurements7
t)e rules and standard procedures $or conducting procurements>
4= collecting in$ormation aout procurement planning7 signed contracts7 and
per$ormance o$ pulic procurements>
5= preparing training programs7 and conducting and encouraging training
concerning pulic procurements>
-= international co!operation on matters associated (it) pulic procurements>
F= organising a system o$ pulication o$ pulic procurements
&= recommending to t)e 9inister matters o$ consolidation o$ procuring agency
re?uirements to ac)ieve value $or money
*= re?uiring t)e procuring entities to provide in$ormation aout conducting pulic
procurement proceedings and per$orming pulic procurements as (ell as
disclosing t)e documentation o$ pulic procurements.
1,= noti$ying t)e relevant 8urisdiction ody7 in case o$ discovery o$ a reac) o$
provisions )ereunder.
I()/*(*!'0 0%'$*/'*-B
In addition to a legal or regulator% fra!e1orA, a !ore detailed and rudi!entar% $et of
guideline$ !a% be nece$$ar% to en$ure that the la1 or regulation i$ Hoperationali$edH to the le(el
of the particular go(ern!ent bodie$ that 1ill be re$pon$ible for carr%ing out procure!ent
policie$'
SOUTH AFRICA
T)e Ten Point Plan on Procurement is a series o$ interim interventions primarily
aimed at increasing t)e participation o$ small and medium enterprises7 in
particular t)ose enterprises o(ned y previously disadvantaged people7 in pulic
sector procurement opportunities. T)e 1, Point Plan <+nterim Strategies= remains
GovernmentDs current procurement policy ()ile t)e ne( policy is eing $inalised
and legislated.
1, P/+3T P'A3A
T)is plan encompass t)e $ollo(ing policy implementation pointsA
1. +mproving access to tendering in$ormation.
2. 4eveloping tender advice centres.
3. ;roadening t)e participation ase $or contracts less t)an #F7 5,,.
4. Waiving securityGsureties on construction contracts )aving a value o$ less t)an #1,,
,,,.
5. .nundling o$ large pro8ects into smaller contracts.
-. Promoting early payment cycles y government.
F. 4eveloping a pre$erence system $or small and medium enterprises o(ned y
)istorically disadvantaged individuals.
&. Simpli$ying tender sumission re?uirements.
14
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
*. Appointing a procurement omudsman.
1,. 2lassi$ying uilding and engineering contracts.
T"+''0B
)raining i$ an i!portant ele!ent in the $ucce$$ of public procure!ent progra!!e$' )1o
i!portant audience$ for training are -1. go(ern!ent !anager$T and -/. !anager$ of go(ern!ent
$upplier$' )raining $hould be ba$ed on local condition$ and $hould be acce$$ible locall%'
UGANDA
T)e Task 1orce $or Pulic Procurement #e$orm )as recommended t)at a
procurement pro$essionalism programme e estalis)ed involvingA
Adoption o$ a Pulic Sector 2ode o$ ;usiness "t)ics all its employees7 and
+mplementation o$ an "ig)t!Step Pro$essional Procurement 4evelopment Plan to
1ocus responsiility $or t)e procurement (ork$orce.
1. +denti$y pro$essional per$ormance standards and internationally accepted
certi$ication re?uirements.
2. +denti$y memers o$ a training net(ork.
3. "stalis) and co!ordinate nation!(ide plans $or training.
4. Write or tailor course materials7 encouraging participation y training
net(ork memers.
5. 4istriute $inal course material to all memers o$ t)e training net(ork.
-. +denti$y $inancial resources $or training.
F. 9onitor success o$ t)e training program.
M*+-%"*(*! #. "*-%/!-B
<ea$ure!ent and data collection effort$ $hould be de(i$ed to en$ure that the procure!ent
$%$te! could be e(aluated on the ba$i$ of effecti(ene$$ and not !erel% on input$' )he lacA of
rigorou$ $tati$tical !ea$ure$ i$ particularl% acute in de(eloping and tran$itioning econo!ie$'
Data not onl% need to be collected in 1ell-accepted and unbia$ed 1a%$T the% $hould al$o be
a$$e$$ed ba$ed on e$tabli$hed credible !ea$ure$' Succe$$ $hould be -1. defined to a$$ure
co!!it!ent$ are !etT and -/. !ea$ured on the ba$i$ of the agreed-upon definition$'
SOUTH AFRICA
T)e goal o$ continuous improvement in pulic sector procurement re?uires a clear
lead and strong commitment t)roug) sound management practices. T)is7 toget)er
(it) t)e asic values and principles governing pulic administration as ens)rined
in t)e ne( Sout) A$rican constitution7 provided a $rame(ork to develop sound
organisational and institutional arrangements t)at (ill result in a pulic
procurement system ()ic) ecomes more e$$icient and e$$ective.
E,+/%+!'# +$ "*,'*@B
0o(ern!ent$ $hould be prepared to e(aluate the public procure!ent $%$te!G$ effecti(ene$$ to
deli(er (alue and !eet national goal$ periodicall%
UGANDA
;ased on a revie( o$ t)e current pulic procurement programme7 t)e principal
recommendations t)e Task 1orce $or Pulic Procurement #e$orm involveA
#eplacing t)e current Pulic 1inance <Tender ;oard= #egulations (it) a set o$ rules
t)at7 among ot)ersA makes economy and e$$iciency t)e primary purpose o$ pulic
procurement to e carried out in a $air7 transparent and non!discriminatory manner>
15
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
de$ines procedures (it) pre$erence $or competitive met)ods> assigns primary
responsiility to procuring entity (it) $unds appropriated>
"stalis)ing a senior level 3ational Procurement Policy .nit in t)e 9inistry o$
1inance (it) speci$ied responsiilities>
Adopting a code o$ et)ics $or all pulic employees>
+mplementing a p)ased plan $or pro$essional procurement development> and
Standardising procurement processes and developing improved management o$
in$ormation t)roug) electronic commerce.
M#$'.'&+!'# #" +8+$#(*! +- *&*--+"3B
0o(ern!ent$ $hould adapt and be prepared to !odif% or e(en abandon progra!!e$
i!ple!ented through the procure!ent $%$te! 1hich are ineffecti(e, a$ 1ell a$ change the
$%$te! a$ a 1hole' rogra!!e refor! i$ often difficult not for polic% rea$on$, but for political
rea$on$' &hen a go(ern!ent reache$ thi$ $tage, it loop$ bacA to $tep 1, Co!!it!ent'
KENYA
+n 5enya7 pulic procurement used to e undertaken y e%ternal entities7 suc) as 2ro(n
Agents in t)e 1*F,s. Wit) increasing procurement needs7 t)is responsiility )as een
passed over to t)e various ministries7 and regulations compiled in a manual under t)e
9inistry o$ 1inance. 0o(ever7 due to $inancial constraints7 t)e Government realised t)at
regulations as t)ey e%isted in t)e manual (ere still de$icient7 and )indered its aility to
use donor $unds. +n 1**F7 t)e Government commissioned a study assessing t)e country:s
procurement processes and systems7 ()ic) identi$ied t)e need $or a compre)ensive revie(
and conse?uently t)e development and implementation o$ a re$orm process.
V. T6* R#+$ !# R*.#"(
)he I)C $trateg% for public procure!ent in(ol(e$ a !ulti-faceted progra!!e to !aAe change$ that
$upport and reinforce i!pro(e!ent action$' )he fir$t $tep 1e reco!!end i$ that the countr% undertaAe
a co!prehen$i(e re(ie1 of the pre$ent procure!ent $%$te!' )hrough thi$ internal re(ie1, 1e $eeA to
identif% needed adEu$t!ent$ in the legal, organi$ational and profe$$ional re$ource$ of the countr% to
!aAe the $%$te! !ore effecti(e' An effecti(e international !odel that ha$ been applied $ucce$$full% in
de(eloped a$ 1ell a$ de(eloping countrie$ ha$ the follo1ing ele!ent$"
A legal or regulator% fra!e1orA 1ith i!ple!enting guideline$'
A !ean$ to !onitor co!pliance 1ith the la1 and regulation$'
A re$pon$ible !anager of the public procure!ent $%$te! to !ea$ure it$ perfor!ance,
ad(i$e political leader$ of it$ $ucce$$e$ and deficiencie$, i!pro(e it a$ nece$$ar%, and a$$i$t
procuring entitie$ in their bu%ing operation$'
Standard ter!$ and contract$'
Open and ad(erti$ed tender$'
A !ean$ to identif% and taAe ad(antage of potential econo!ie$ of $cale - $uch a$ grouping
(ariou$ <ini$tr% reBuire!ent$, liAe (ehicle$, to obtain the be$t price'
=igh le(el$ of procure!ent profe$$ionali$! and bu%ing e3perti$e in each procuring entit%
de(eloped through organi$ed $taff training'
)hi$ approach 1a$ e3a!ined at the AbidEan Conference during a $erie$ 1orA$hop$ on i$$ue$ related to
building a refor! progra!' Out of the$e 1orA$hop$ ca!e a con$en$u$ on the $tep$ needed to put in
place a progra! for refor! to build a re$pon$i(e procure!ent !anage!ent infra$tructure' In addition, a
$ub the!e of the Conference 1a$ to pro!ote greater intra-Africa trade (ia public procure!ent a!ong
the participant$' )aAen together, thi$ AbidEan Con$en$u$ Docu!ent pro(ide$ a blueprint for refor! in
all countrie$'
16
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
A8'$C+ C#-*-%- D#&%(*!
T6* C#.*"*&* # P%8/'& P"#&%"*(*! R*.#"( ' A."'&+ < A8'$C+< CD!* $EI,#'"*< D*&*(8*" 1998
)he Conference a$ a 1hole agreed that"
B%'/$'0 S%))#"! .#" R*.#"( - reBuire$
olitical endor$e!ent and co!!it!ent
A $trateg% for de(eloping enabling legi$lation,
organi$ation$ and regulation$
&ell trained and co!petent procure!ent official$
Infor!ed, 1illing and $upporti(e bu$ine$$ and
profe$$ional $ector$ at both the local and international
le(el$
D*(#-!"+!'0 P#/'!'&+/ C#(('!(*! - i$ needed
to effect change$ and
Obtain public $upport
Obtain go(ern!ent $taff endor$e!ent
rioriti$e Ae% ele!ent$ of procure!ent, $uch a$
tran$parenc%, anti-corruption, etc'
ro!ote $ocio-econo!ic obEecti(e$
Jeep arlia!ent ad(i$ed
8ea$$ure potential donor$
O8!+''0 R*-#%"&*- .#" R*.#"( N i$ needed to help
prepare a bu$ine$$ plan to i!ple!ent Ae% obEecti(e$ of
the refor!'
P#!*!'+/ S#%"&*- #. F%$- to conduct refor! are"
)he countr%G$ o1n re$ource$ -0o(ern!ent and,or
pri(ate $ector.
<ultilateral agencie$ $uch a$ the African De(elop!ent
BanA, the &orld BanA or the *nited +ation$
De(elop!ent rogra!!e 00000000 grant$ and loan$
a(ailable under ter!$ of regional and bilateral
agree!ent$
P#!*!'+/ )+"!*"- to pro(ide $upport for
i!ple!entation of refor!$ are"
+ational re$ource$ -$uch a$ public authoritie$,
bu$ine$$ and profe$$ional organi$ation$.
Bilateral and !ultilateral donor agencie$
00000000International )rade Centre and other *nited
+ation$ organi$ation$ to build capacit%
Other countrie$ able to $hare infor!ation or e3change
-$econd. $taff
D*!+'/'0 A S!"+!*03 F#" R*.#"( - i$ needed to
addre$$ ho1 to $elf-initiate refor!$ -1ith donor
a$$i$tance a$ needed. to
Build local capacit% and tran$fer $Aill$
De$ignate leader,cha!pion of refor!
Integrate refor! 1ithin !acro econo!ic fra!e1orA
<onitor and e(aluate refor! effort$
<a3i!i$e national e3perti$e -co!ple!ented b%
e3ternal re$ource$.
Obtain !edia $upport to pro!ote acceptance of refor!
Co!!unicate national co!!it!ent and progre$$
:n$ure clear, under$tandable goal$ -refor! not an end
in it$elf.
Anticipate ob$tacle$ and barrier$ and BuicAl%
o(erco!e the!
C#((%'&+!'0 !6* S!"+!*03 - i$ needed to"
Set a (i$ion -e'g' HObtain !ore (alue for !one%
through an efficient and internationall% accepted
procure!ent $%$te!H.
:$tabli$h goal$ to fulfill the (i$ion, in(ol(ing area$
$uch a$"
Anti-corruption !ea$ure$
00000000)ran$parenc% enhance!ent
:cono!% in purcha$ing
I!pro(ed accountabilit% of fund$
Su$tainable hu!an de(elop!ent
Bu$ine$$ opportunit%
=ar!oni$ation of procure!ent policie$ and procedure$
Changing organi$ation $tructure$
Accelerated econo!ic gro1th -a$ a C of 0+.
Clearer go(ern!ent co!!unication to pri(ate $ector
participant$ of the $%$te!
<ore effecti(e trade policie$ -pro!ote !ore intra-
regional trade.
ro!otion of $ocio-econo!ic obEecti(e$
Identif% the leader or cha!pion of the refor! effort
1ith the reBuired political 1eight to carr% out an
effecti(e progra!, $uch a$ the re$ident of the countr%
or ri!e <ini$ter or <ini$ter of #inance
Identif% StaAeholder$ in the proce$$ and obtain their
ad(ice' StaAeholder$ nor!all% include indi(idual$ in
the follo1ing area$"
9ine <ini$trie$ and bu%ing agencie$
#inance and Uu$tice <ini$trie$
ri(ate $ector organi$ation$
Donor$,international organi$ation$
arlia!entarian$
<aAe $pecific change$ in the follo1ing area$ to
$upport refor!"
9egal fra!e1orA -confor! 1here po$$ible to the
*+CI)8A9 <odel 9a1 on ublic rocure!ent .
00000000
rocure!ent operation$ -create decentrali$ed
procure!ent entitie$ 1ith the authorit% to do the actual
bu%ing operation$ follo1ing centrali$ed polic%.
8egulator% bodie$ -a$$ure effecti(e audit and re(ie1
capabilit% of contracting and e3penditure$.
Organi$ational $tructure -$pecific !ini$tr% and office
$tructure dependent on each countr%.
rocure!ent polic% at center of go(ern!ent le(el
-!anage!ent office to for!ulate polic% and
regulation$ and !ea$ure the effecti(ene$$ of the public
procure!ent $%$te! and it$ operation.
rofe$$ional infra$tructure -help e$tabli$h and train a
cadre of profe$$ional procure!ent official$. including
a reference Ano1ledge ba$e of be$t practice$
De(elop a !ean$ to !ea$ure perfor!ance -to
$ho1 $a(ing$ and collect e$$ential data. of the
refor!ed $%$te! - needed to"
A$$ure political leader$ and the public that refor!$ are
effecti(e
AdEu$t policie$ to !aAe the refor!$ a$ effecti(e a$
po$$ible'
17
9
th
International Anti-Corruption Conference, 10-15 October 1999, Durban, South Africa
VI. C#&/%-'#
ublic procure!ent $%$te!$ can be on oppo$ite pole$ -- the% can either add (alue to the econo!% or
$iphon it a1a% into corrupt, 1a$teful or unethical purpo$e$' #e1 countrie$ - de(eloped or unde(eloped
- are at either one of the$e pole$, %et, liAe people, !an% are at $o!e point bet1een perfection and
perdition' Becau$e of the do!e$tic and international i!perati(e$ that are coale$cing around the function
of public procure!ent, all go(ern!ent$ $hould ha(e a clear under$tanding of 1here their $%$te! lie$ on
thi$ line'
)he !o$t effecti(e 1a% to under$tand the u$e$ of a public procure!ent $%$te! (i$-a-(i$ national goal$
and intere$t$ i$ to conduct a $tructured anal%$i$ of it' )he infor!ation abo(e, 1ith e3a!ple$ fro!
actual ca$e$ in Africa, i$ intended to help for!ulate that t%pe of re(ie1 and plan' =o1 effecti(el% a
countr% can prepare and follo1 $uch a plan during the bu$% period ahead in the international trade
co!!unit% 1ill depend on !an% thing$' But the one re$ource abo(e all 1hich 1ill !aAe the !o$t
difference in the ta$A of enhancing (alue$ through i!pro(ed procure!ent operation$ i$ a dedicated,
trained, profe$$ional procure!ent 1orAforce'
eople are needed to tran$late !anage!ent goal$ and policie$ into realit%' )hroughout the 1orld, future
de!and$ on the procure!ent 1orAforce are e3pected to be e(en !ore critical than the% are toda%' A$
the econo!% of a de(eloping countr% gro1$, it$ procure!ent reBuire!ent$ can be e3pected to beco!e
!ore co!ple3' If procure!ent i$ to adeBuatel% $upport thi$ gro1th, the procure!ent 1orAforce !u$t be
able to !aAe !ore infor!ed Eudg!ent$ about the be$t ite!$ a(ailable in national and global !arAet$ to
$ati$f% reBuire!ent$ 1ithin the go(ern!entF$ policie$'
18