Bureaucracy fuels tender loopholes:PRAZ

LIVINGSTONE MARUFU AND ROBIN PHIRI

Zimbabwe’s public procurement system is being undermined by bureaucratic gaps that tenderpreneurs exploit, the Procurement Regulatory Authority of Zimbabwe (PRAZ) has warned, calling for urgent collaboration among regulators, procuring entities, and stakeholders to close the loopholes.

“No wonder why you then find people with specific resources getting more and more tenders,” PRAZ CEO Dr. Ruswa told Business Times.

“There’s need for a handshake between us as a regulator and ZIDA and the procuring entities also to assess that, because this is where the loophole is coming from…if we are to remove those and only remain with established businesses, yet our country policies devolution and all, we are talking of giving way to the MSMEs and SMEs.”

Speaking at the launch of the Methodology for Assessing Procurement Systems (MAPS) workshop, Dr. Ruswa acknowledged the existence of exemptions and special arrangements, such as bilateral agreements and public-private partnerships (Triple Ps), which can be exploited in procurement.

He stressed that collaboration between regulators, procuring entities, and other stakeholders is key to closing these gaps and ensuring fairness.

“Some come through my principals and those people don’t go through the rigorous processes that fair bidders go through,” he said. “We need to explain this to our nation, instead of just labelling everything as tenderpreneurship. Because otherwise, the question people come to the regulators is, how do we remove this?”

Dr. Ruswa said PRAZ’s ultimate goal is a procurement system that promotes inclusivity, transparency, and accountability, offering opportunities for all stakeholders, including marginalized groups, to participate and benefit.

Rejecting the derogatory notion of “tenderpreneurship,” he highlighted the importance of domestic preferencing under Section 29 of the Public Procurement and Disposal of Public Assets Act.

“We don’t believe there’s such a term as tenderpreneurship, because for us, it’s derogatory,” he said. “As a regulator, we are trying to invoke Section 29, which talks about domestic preferencing and identifying some of the key sectors, let’s say the previously marginalized, through what we call preferential procurement. Even in our regulations, we are identifying the women-owned businesses, the youth, our tertiary institutions, then these SMEs now.”

He also addressed rising concerns about devolution, noting that procurement is decentralized to 357 entities, including commissions, ministries, state-owned enterprises, and local authorities. He emphasized scrutiny, transparency, and the use of the Electronic Government Procurement (EGP) system to monitor tender awards.

Reflecting on the 2018 Public Procurement and Disposal of Public Assets Act, Dr. Ruswa pointed out gaps in compliance that continue to undermine procurement integrity.

“During the implementation of this new Act, we could see a lot of gaps…because once we comply with such, there won’t be any problem. But the fact that people are not complying, there’s outcry, and the reputation of the nation is also at stake.”

He called for a standardized approach to identifying root causes of problems and improving procurement systems to meet global best practice.

“Issues of compliance are very core and key…we still feel we can do much more, especially when it comes to professionalisation, compliance, and value for money,” he said.

PRAZ Board Chair Ntombenhle Moyo said the MAPS assessment would be instrumental in enhancing transparency, efficiency, and accountability in public procurement.

“MAPS will also help to streamline procurement processes through recommendations that address waste reduction and optimisation of resource allocation. The duplication of projects can be curtailed as policy makers would be informed by data in their decision-making,” she said.

She added, “We must each play our part with the requisite sincerity and commitment to improve our public procurement ecosystem.”

According to Moyo, the assessment will target at least 100 different tender processes from varied stakeholders, scrutinize strengths and weaknesses, and guide PRAZ in formulating the National Development Strategy 2, driving fit-for-purpose reforms.

PRAZ’s push for collaboration, inclusivity, and compliance signals a move towards a more transparent and accountable public procurement system. By addressing loopholes, promoting domestic preferencing, and engaging all stakeholders, the regulator hopes to create a level playing field for MSMEs, SMEs, and previously marginalized groups while safeguarding Zimbabwe’s national reputation.