September 11,
2020 6674 6674 
PRESIDENT LUNGU COUNSELS PROCUREMENT PRACTITIONERS
Lusaka, (Wednesday, 2nd September,2020) ---- His Excellency, Dr Edgar Chagwa
Lungu, President of the Republic of Zambia has appealed to public procurement practitioners to ensure that Government gets value for money on the goods and services procured.
The President notes that Government and other spending agencies procure goods and services in large quantities hence the need for those responsible for procurement to exercise professionalism and responsibility when expending public funds.
President Lungu said this when he met members of the executive of the Zambia Institute of Purchasing and Supply (ZIPS) during a courtesy call on him at State House on Wednesday.
"The nation is at a critical moment faced with inadequate funding in the midst of myriad competing needs hence the need for prudent public procurement in order for Government to attain the 7th national development plan and other development targets. There is need for both public and private procurement practitioners to adhere to prudent procurement practice, " said the President.
The President assured that Government is committed to ensuring that challenges in procurement are dealt with accordingly.
And ZIPS President Chibwe Mwelwa acknowledged the important role public and private procurement plays in national development.
"In developing countries public procurement contributes immensely to the Gross Domestic Product (GDP). Retailing and wholesaling contributes about 30% to GDP while in a manufacturing plant and the mining sector, the production costs are controlled by the procurement function, "said Mr Mwelwa.
The ZIPS president recalled that Government had announced wide ranging austerity measures with His Excellency the President emphasising on adherence to the measures.
Mr Mwelwa said the implementation and success of the Austerity measures will depend heavily on the procurement process. "Its failure or success depends on the procurement function; as they buy goods and services for Government to function," he said.
Further, Mr Mwelwa said the call by His Excellency the President on the "Value for money" and "having more for less" was directed to the procurement and stores professionals in the nation.
"The attainment of this great aspiration will not fully be realised without the fervent mentioning of the procurement process," he said.
He called for serious checking of procurement activities in all private manufacturing plants including, the mining companies to avert the possible loss of taxes by Government.
Mr Mwelwa proposed to the President to appoint a Permanent Secretary to be In Charge of Procurement as this will anchor the procurement function in Government and will ensure that the public and private sectors add value, and the nation gets value for money.
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Issued by:
ISAAC CHIPAMPE
FOR/SPECIAL ASSISTANT TO THE PRESIDENT
(PRESS AND PUBLIC RELATIONS)
STATE HOUSE
August 3,
2020 6072 6072
As an Institute we wish to take this opportunity to celebrate and recognise farmers as we celebrate the 2020 Farmers Day.
The National Farmers' Day in Zambia is observed on the first Monday of August each year. There are three major categories of farmers in Zambia, defined in terms of the land area cultivated by each farmer.
1. Small-scale farmers, who are the vast majority, cultivate about less than five hectares (ha.) each, use few external inputs, and consume most of their produce, occasionally entering the market to sell any surplus.
2. Medium-scale farmers cultivate between 5 to 20 ha. They use improved seeds and fertilizers and sell most of their production. These farmers commonly use a combination of manual, animal draft power and tractors.
3. Large-scale commercial farmers plant about over twenty ha annually. These farmers apply high levels of purchased inputs and use oxen or machinery for farm operations. They produce almost exclusively for direct market sale or feed their grain to livestock kept on the farm.
With this background, The ZIPS Council and General Membership wish to pay a special cognisance for the Invaluable contribution the farming sector plays in the supply chain.
It has been said that the agricultural sector in Zambia supports livelihoods of 85% of the population, these statistics are not just figures but a reflection of Hardworking men and women that have taken up farming as a career.
If we look at the real measure of supply chain as being the success in how well activities coordinate across the supply chain to create value for consumers, while increasing the profitability of every link, then we as supply chain practitioners need to be proactively identifying the challenges in achieving this
Challenges include predominance of small/medium farmers, fragmented supply chains and absence of scale economies and coming up with solutions in procurement and sourcing. Warehousing and inventory management to name but a few where our influence can be felt.
At an individual level and in conclusion, farming is the future of wealth creation and as such I would like to employee our members to consider joining this promising sector either on small scale or Large scale.
May the Lord Richly Bless you all and Happy Farmers Day
Chibwe D. Mwelwa
ZIPS President.
July 9,
2020 6611 6611
HEROES AND UNITY DAYS HOLIDAY MESSAGE
March 23,
2020 5471 5471
ZIPS MEETS THE SECRETARY TO THE TREASURY
ZIPS has continued with the crusade of engaging government on various issues that affect the Supply Chain profession in Zambia.
The ZIPS President Mr. Chibwe D. MWELWA led the ZIPS Council comprising of the Vice President South, Mr. Noel Sandukiya, Council Secretary Mr. Daniel Kabamba, Council Member Mr. Patrick Tembo, the Registrar Mr. Henry Chanda, in paying a courtesy call on the Secretary to the Treasury, Mr. Fredson Yamba on Friday 14th February 2020. The meeting addressed the following issues:
1. LACK OF LEGITIMATE POWER FOR THE PROCUREMENT FUNCTION
ZIPS informed the Secretary to the Treasury that the management of Government funds was by a Trio logy of departments - Internal Audit, Finance, and Procurement.
The three sectoral aspects of Government spending regime is critical to the prudent management of the public funds. The Procurement function commits Government funds and this department is the mainstay and flagship to the value addition process of acquisition of government procurement services.
Mr. Mwelwa reminded the Secretary to Treasury that Government had elevated the positions of Accountant General and Internal Auditor to the Permanent Secretary level while the third member of the trilogy, Procurement was left out.
He also reminded the Secretary to the Treasury that the entire Government procurement system had no ANCHOR in government which made procurement to be easily manipulated and that made the value addition process to be elusive. He advised the Government to quickly address this status quo because if this was not addressed the challenges that Zambia was facing relating to procurement would continue. Mr. Mwelwa further stated that the issue of legitimate power for procurement officers needed to be addressed urgently. It was noted that Government now has Director of Finance and Director of Internal Auditor yet still procurement remained at Assistant level position.
Mr. Mwelwa stated that ZIPS was advocating for the funding of the Procurement General which was already part of Government structure under PSMD.
ZIPS was concerned that the funding of this position was long overdue. Its absence had rendered the procurement function incapable of taking full responsibility and accountability in Public Procurement. The benefits to be realised from the creation of this position are highlighted as follows:
- As the anchor for Government procurement, the position at PS level 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 that relate to the procurement function.
2. ALIGNMENT OF STORES FUNCTION TO ACCOUNTS DEPARTMENT
ZIPS President informed Mr. Yamba that the circular No 8 of 2019 (Alignment of Public Stores Management of the Public Finance Management Act No 1 of 2008) which was issued by his office created a lot of challenges because Stores Management is part of the Procurement function and NOT the function of Accounts. He further stated that the reason why the profession was called procurement and supplies is because the supplies part actually refers to the stores function.
The Institute submitted that the circular issued had caused a lot of challenges in the profession because stores officers were instructed to report to Accounts departments instead of the Purchasing and Supplies Units (PSUs) and that if these changes in Stores reporting structure were not quickly addressed and managed, it would have the opposite effect than that intended.
Mr. Mwelwa stated that ZIPS had reviewed the Public Finance Management Act No 1 of 2018 and it was clear that the section being quoted in the said Circular did not indicate that Stores should be reporting to the Finance Department.
The Council Secretary, Mr. Kabamba added to the matter and stated that Supply Chain constituted of Stores, Inventory, and Procurement and these were inseparable. He further stated that the Public Finance Act makes reference to the value of inventory which goes in the ledger and Finance and Stores meet at the point of ledger because finance looks at the value while stores focus on the physical items.
The ZIPS President, Mr.C.D. Mwelwa noted that some of the challenges facing the Stores department were because a lot of Stores officers in government were not qualified and also categorically advised the Government to withdraw this communication because it was causing massive challenges.
3.0 RESPONSE FROM THE SECRETARY TO THE TREASURY
In responding to the issue raised by ZIPS regarding the funding of the Procurement General, Mr. Yamba noted that it was unfortunate that the position of Procurement Controller/General was not funded. He stated that he was going to engage PSMD so as to understand why this position was not funded. He further mentioned that the position was key and that funding it would streamline Supply Chain Management in government and in the nation at large.
Mr. Yamba observed that nobody was paying attention to what was happening in the procurement function when a lot of government funds were committed by the officers in this profession. He also challenged ZIPS to be more visible and continue pushing its agenda.
Mr. Yamba stated that he was on leave at the time ZIPS wrote to him regarding the alignment of the functions but assured the Institute that he was going to investigate whether the circular was in tandem with the Public Finance Act, thereafter he would constitute a team which would include the Accountant General, ZIPS and other interested stakeholders so as to see how best they could resolve this matter.
Mr. Yamba further indicated that if need be, the circular would be withdrawn after a conclusive consultative process.
Issued by
ZIPS Secretariat
19th February 2020
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March 23,
2020 5668 5668
ZIPS 1ST EXTRAORDINARY COUNCIL MEETING
Zambia Institute of Purchasing and Supply held its first Extraordinary Council Meeting on 24th January 2020 considered the following resolutions.
1. 2020 ZIPS budget
The Budget for 2020 was officially approved.
2. ZIPS December Examination Results
ZIPS December 2019 Results were approved and have been released to accredited Institutions. Secretariat was challenged and tasked to increase enrolments across the country. Candidates who sat for these Examinations can now access the results from their Institutions of learning.
3. Purchase of ZIPS Secretariat
ZIPS was invited to express interest in purchasing the Kwacha Pension building which is currently housing Secretariat Head Quarters in Lusaka.
a. The council approved the purchasing of the Building and sourcing of financing
b. The Council tasked the Lands Taskforce committee to meet in the month of February so as to organise fundraising ventures.
4. Deduction at Source (PERMC)
Council resolved that all members on PERMC to pay the difference on their subscriptions resulting from the adjustment which the current system is unable to accommodate.
5. Annual General Meeting Motions
The Council upheld the following motions which were approved by the 11th AGM which was held in Kitwe on 13th December 2019;
a. Holding of Annual General Meeting together with the Annual National Conference: Effect from the year 2020, the Annual General Meeting shall be held together with the ZIPS Annual Conference.
b. Revision of Membership Fees: Effect from January 2020 membership subscription fees have been adjusted as follows:
Current Membership Fee (ZMW)
Fellow (FZIPS) - 2,000
Full Member (MZIPS) -800
Affiliate - 650
Associate (AZIPS) – 4,500
Student - 175
Adjustment Increase (ZMW)
Fellow (FZIPS) - 1,000
Full Member (MZIPS) - 500
Affiliate - 250
Associate (AZIPS) – 3,000
Student – 25
Revised Membership Fee (ZMW)
Fellow (FZIPS) - 3,000
Full Member (MZIPS) – 1,300
Affiliate - 900
Associate (AZIPS) – 7,500
Student – 200
The adjustment increase will go toward the construction of ZIPS Secretariat and a savings account has been opened so as to separate the project fee from the Membership fee.
c. 6.3 Re-Alignment to the ZIPS Act No.15 of 2003
The following resolutions were approved effective from the next Elective Annual General
d. Vice President and Vice Secretary
Effective from the next elective Annual General Meeting, only one Vice President position shall be available for contesting while the position of Vice Secretary position will be reintroduced.
e. Tenure of Office for the Council;
With effect from the next elective Annual General Meeting, the tenure of office for the Council shall be two years
f. Executive Director to be the Registrar;
It was also resolved that with immediate effect, the Chief Executive Officer of the Institute shall be called the ‘Registrar’
g. Qualifications to become a Full Member;
It was resolved that one qualifies to be a member when they have fulfilled the following conditions:
I. Engaged in Purchasing and Supply or specialized field within Purchasing and Supply Function;
II. Has passed examinations as set by the Council; and
III. Has performed executive or advisory duties related to Purchasing and Supply management at a senior level for at least 5 years post qualifying.
The Council comprised the following
1. Mr. Chibwe D. Mwelwa : Chairperson, President
2. Mr. Noel Sandukiya : Vice President South
3. Mr. James Mwaba : Vice President, North
4. Mr. Daniel Kabamba: Council Secretary
5. Ms. Mary Banda : National Treasurer
6. Mr. Christopher Chichoni : Member representing Zambia Public Procurement Authority (ZPPA)
7. Mr. Mumba Chanda : Member representing Ministry of Finance (MOF)
8. Mr. Patrick Tembo : Member representing Zambia Federation of Employees (ZFE)
9. Ms. Maureen Banda : Member, Law Association of Zambia (LAZ)
10. Ms. Phildelia C.S. Mwaba : Member representing Zambia Chamber of Commerce and Industry (ZACCI)
11. Mr. Chanda Kabwe : Member Independent from DMMU
Henry Chanda
Issued by the Registrar
11th February 2020