ZIPS MEETS THE ACCOUNTANT GENERAL

ZIPS President Mr. Chibwe D Mwelwa led a team from ZIPS comprising the Council Secretary, Mr. Daniel Kabamba, the National Treasurer, Ms Mary Banda, the Registrar, Mr Henry Chanda, and former Council Member Mr. Friday Mumba, in paying a courtesy call on the Accountant General, Mr. Kennedy Musonda on Thursday, 30th January 2020. The meeting was very fruitful and addressed the following issues:

1.0 CHALLENGES THAT THE PROCUREMENT FUNCTION EXPERIENCES IN ZAMBIA

Lack of legitimate power in the procurement process: Procurement personnel are lowly positioned in Government and private sector.  It was sadly noted that the highest position one has in Government is Head of Procurement which is at Assistant Director Level. This issue is receiving unprecedented support from the Office of the Secretary to the Cabinet.

2.0 LACK OF ANCHOR OF PROCUREMENT FUNCTION IN GOVERNMENT OPERATIONS

Procurement does not have an anchor in Government as far as ZIPS is concerned and that results in a lot of challenges including:

- Though members report to the Controlling Officer, the procurement function reports to no one professionally (like the Accountants have the Accountant General)

- Members do not have any support or protection and can be easily be moved at will by PSMD

- Trained personnel are being removed without consideration

- The procurement department is susceptible to manipulation as the function has no support in Government Operations

- The Accountant General has pledged to be an ambassador for ZIPS in order to push this agenda

3.0 CREATION OF THE OFFICE OF PROCUREMENT GENERAL/CONTROLLER

The creation of this position as far as ZIPS is concerned is long overdue. Its absence has rendered in the procurement function incapable of taking full responsibility and accountability in Government Procurement. The benefits to be reaslised from the creation of this position are:

- The Procurement General will be spokesperson on all government procurement activities which in turn will divert the finger pointing that politicians, including the President are subject to

- As the anchor for Government procurement, the position will be at PS level (the same level as the Accountant General) and will therefore be at the appropriate level to deal with all challenges in Government procurement, including the procurement related queries that consistently appear in the Auditor General’s Report

Mr. Kennedy Musonda observed that it was unfortunate that the procurement function had no anchor in government and that this matter needed to be addressed with the urgency it deserved. He committed to working with other government wings in lobbying for this cause. He stated that the creation of the Office of Procurement Controller will streamline Supply Chain Management in government and in the nation at large.

4. ALIGNMENT OF STORES FUNCTION TO ACCOUNTS DEPARTMENT

The Accountant General acknowledged receipt of the letter the Institute wrote to the Ministry of Finance and his office in regards to the circular No 8 of 2019 (Alignment of Public Stores Management of the Public Finance Management Act No 1 of 2008).

The Institute submitted that the circular issued has caused a lot of confusion in the profession because stores officers were instructed to report to accounts departments instead of the PSU. If these changes in the stores reporting structure are not managed, this may have the opposite effect than that intended.

Mr. Kennedy Musonda assured ZIPS that his office, working with the Ministry of Finance has taken this matter seriously. He further stated that his office will constitute a team that will study and review the submission made by ZIPS and will officially respond to the Institute in writing.

5. AUDITOR GENERAL’S REPORT

The Accountant General has observed that more than 90% of queries in the auditor’s report were attributable to procurement.

In responding to the concern, the ZIPS President stated that the Institute has taken deliberate steps to address this matter which include holding workshops and seminars held in Chapters. The President observed that some of the personnel employed in stores departments in government ministries were not qualified and not members of the Institute hence the increase in audit queries.

Mr Mwelwa said that ZIPS has recommended to government the need to have a procurement operations manual which must be generated with auditor’s requirements so that Procurement professionals are aware of what the auditors were looking for. He further stated that ZIPS has written to Auditor General’s office so that disciplinary proceedings can be instituted against erring members of ZIPS.

The Accountant General has said that his office will engage the Institute on queries from the Auditor General’s Report in order to obtain ZIPS’ recommendations.  He further mentioned that Government appreciates ZIPS input in the ZPPA Act and further stated that the submission by the Institute has been incorporated in the Act.

6.0 ZIPS REGULATIONS

The Accountant General Informed the ZIPS delegation that the regulations are with the ministry of Justice and that his office was doing everything possible to have them finalized. 

Conclusion

The Accountant General was elated with the strides and development ZIPS was undertaking to ensure that the profession continued to carry out its mandate and function. He further encouraged the Institute to continue being proactive so as to ensure that Procurement personnel continues to uphold ethical standards and those who are frustrating governments' efforts should be put on the bench.

Mr. Kenneth Musonda has pledged government support to ZIPS as the Institute carries out its mandate.

The ZIPS president reminded the Accountant General austerity measures cannot be achieved if the procurement function is not brought on board because procurement officers are the ones who commit to spending.

Issued by ZIPS Secretariat

5th February 2020

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