Reserve Bank of Malawi (RBM) Governor, Dalitso Kabambe, has told procurement practitioners in the country to ensure that there is value for money in all processes to help curb funds-wastages.
The professionals have also been urged to value integrity in safeguarding the public and private sector purse.
Kabambe was speaking on Friday when he graced the 9th Malawi Institute of Procurement and Supply (Mips) annual conference in Mangochi District.
He said currently, the economy is highly segregated in terms of procurement where government agencies are charged highly than private individuals for similar goods or services.
“The Institute has to fight for efficient pricing and allocative efficiency. It is noted that most contracts end up with elevated prices that are very different from the initial agreements due to escalation clauses.
“Price adjustment clauses in the addendum of contracts must be carefully scrutinised and understood before the contracts are awarded to suppliers,” Kabambe said.
He added that procurement and supply is the most user of foreign exchange accounting for at least 70 percent of budgets in most public institutions including the national budget.
Director General of the Public Procurement and Disposal of Assets Authority, Elias Hausi, said in a quest to enhance transparency and accountability in the profession, the authority is setting up digital platforms where all procurement procedures will be undertaken.
“We are going to enhance our website so that it is going to be used as a portal where procuring entities will put invitation for bids and also when people are bidding they will post on the same.
“We are also working on an e-procurement system which will be linked to some of the procuring entities and that means we will reduce human interface in that case procurement decisions are going to be made based data,” Hausi said.
Mips president, Joseph Ngalawa, said currently, there are some people that are not trained in procurement but are given the jobs which negatively reflect on the career.
He said there are some companies that have advanced and are operating in the digital space while others are yet to embrace technology in their operations.