March 23,
2020 4459 4459 
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 4626 4626
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
March 23,
2020 4509 4509
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
Learn. Serve. Prosper
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March 23,
2020 4286 4286
ZIPS CELEBRATES ITS CORPORATE SOCIAL RESPONSIBILITY DAY
The Zambia Institute of Purchasing and Supply (ZIPS) carried out corporate social responsibility activities at the University Teaching Hospital on Friday 31st January 2020. ZIPS strongly believes in giving back to the community in which it serves.
The Institute visited Zambia’s largest referral hospital - University Teaching Hospital and made a donation of various items to the Casualty and Accident Wing. The visit was not just about the donation but also saw ZIPS Council Members, ZIPS Members, ZPPA representative and Secretariat clean the ward.
The Chief Nursing Officer at the Adult Hospital who spoke on behalf of Management, welcomed ZIPS members to the Casualty and Accident Wing. He stated that the Ward is sometimes challenged for lack of cleaning resources. He stated that Management was grateful to ZIPS because the visit and the donation were timely. He further stated that the donation would help make UTH a relevant place of healing, comfort and hope for the patients as well as improve quality health care delivery to the patients.
Speaking at the same event, ZIPS President Mr Chibwe D Mwelwa reminded the audience that the reason the ZIPS Act was enacted was to ensure that the procurement process is sanitized and regulated. Its main function is to ensure that the procurement process is properly managed so as to maximise the benefits to be realized. The President highlighted the importance of the Procurement function in the development of a nation.
The ZIPS president thanked the Supply Chain professionals across Zambia for their contribution to the country. He stated that although the individuals were unsung heroes, their contribution and input could not be left unnoticed. Mr Mwelwa stated that for any organisation to maximise its profit and reach its objectives there was need for a properly managed procurement process.
The President noted the achievements that UTH had continued to score over the years through saving lives and mentioned the kidney transplant that UTH recently conducted as a case in point. He thanked Management for working hard in ensuring that lives were saved. He also reminded them that for them to effectively work they needed equipment and medical supplies which were procured by Supply Chain Personnel hence the need to collaborate.
Mr Mwelwa said that ZIPS was considering adopting a ward on a long term basis as a way for ZIPS to give back to the community as part of its social corporate responsibility.
Speaking at the same event, the Director General of Zambia Public Procurement Authority, Mr Christopher Chichoni who was also the guest of honor thanked ZIPS for a very important initiative which was aimed at making positive contributions to the quality of life of the community in which we live and work.
He noted that ZIPS was extremely active in promoting the values of corporate social responsibility emanating from its shared commitment to the priorities of smart, sustainable and inclusive growth.
Mr Chichoni stated that ZIPS had realized the importance of setting up a corporate social responsibility policy because of the impact this has on society. He further stated that it was believed that CSR was no longer defined by how much money an institution contributes to a noble cause, but by its overall involvement in activities that improve the quality of people’s lives, in this case health.
Mr Chichoni noted that ZIPS had taken keen interest in several social issues which explain its’ growing interest in its’ CSR activities. The first such issue was to do with the concerns and expectations of citizens, consumers and public authorities as well as the impact of globalization and industrial change. The second issue was the increasing influence of social criteria on the investment decisions of individuals and institutions. The third issue was the growing concern over environmental degradation; on this one we are yet to see the institution actualize the green procurement concept.
The ZIPS Executive Director Mr Henry Chanda thanked management at UTH for allowing ZIPS to carry out its corporate social responsibility activities at UTH.
ZIPS provincial Chapters across the country will conduct similar activities.
Issued by ZIPS Secretariat
31st January 2020
March 23,
2020 4678 4678
ZIPS AND ZIHRM COLLABORATE
The ZIPS President Mr Chibwe D MWELWA, on 13th February, 2020 initiated and led the ZIPS delegation comprising of the ZIPS Council Member, Mrs Phedlia Mwaba, the Registrar Mr Henry Chanda and the Education and Membership Manager Mr Inambao Wakwinji in meeting The Council and Management of Zambia Institute Resources Management (ZIHRM). The meeting was fruitful and addressed the following issues:
1.0 ZIPS OBSERVATION - COMPLIANCE TO THE ZIPS ACT
The ZIPS President stated that Zambia as a country hinges on procurement and that the sustainability of Fiscal Consolidation of the economy is dependent on prudent procurement practices and so it was important for professional employed to undertake this important function to be qualified and regulated as provided for in the ZIPS Act No. 15 of 2003.
Mr. Mwelwa outlined the role of the courtesy call on ZIHRM and stated how important the Human Resources Function was in developing Zambia and how critical the acquisition of skilled manpower contributes to the development of the nation.
TMr Mwelwa stated that the enforcement of ZIPS Act was meant to ensure that only qualified personal in Procurement and stores were engaged to carry out the function of Supply Chain Management and that this has to be adhered to by the Human Resources Department
The following was discussed and agreed.
2. COLLABORATION OF ZIPS AND ZIHRM
In a bid seal the gaps identified ZIPS and ZIRM would define how they would help each other in the attainment of the Institution’s goals and objectives as they contribute to the National Development. ZIPS and ZIRHM were looking forward to a partnership through signing of a Memorandum of understanding.
The Memorandum of Understanding (MOU) to underpin this corporation.
a) The MOU would seek to ensure that only the right qualified people were employed to carry out the function of the Supply Chain. It was noted that when the right people are employed in the right offices in procurement and stores officers, this would translate into the value addition and development of our nation.
b)That the Human Resources department in all Institutions shall make sure that all adverts for procurement an stores jobs follow the provision of the ZIPS Act
c)To ensure that all interviews relating to Procurement and Stores in this nation are witnessed by the Zambia Institute of Purchasing and supply personnel to ensure that right people are employed
3 ZIHRM OBSERVATION
ZIHRM was pleased with the steps ZIPS had taken to foster development in the country. The ZIHRM President Mr. Mooka Silumbu spoke on behalf of the ZIHRM Council stated that The formation of ZIPS brought a lot of sanity in the Supply Chain Profession in Zambia. He cited the introduction of the Diploma in Purchasing and Supply as a step in the right direction and ZIHRM would emulate how they would also start offering training.
Mr Silumbu stated that ZIPS and ZIRHM needed to work together and to ensure that the two professions were recognized like it was with Finance ( ZICA)
Mr Silumbu said that ZIHRM concentrates on recruiting, managing and directing people professionally. He further stated that ZIHRM took full reasonability for employing professionals who were not qualified to undertake the Procurement function. Mr Silumbu mentioned that some of the reasons which contributed to Human Resources professionals recruiting unqualified personnel in the procurement positions was due to lack of unclear guidelines from professional bodies like ZIPS but hoped that the MOU would address some of these challenges.
4 TASKFORCE TO DRAW THE TOR FOR THE MOU
The two Institutions agreed to immediately form a working Task Force to put to paper the content of the MOU. The Task Force was immediately created and tasked to started work:
The MOU will cover some of the areas
I. Training and Workshops (CPDs)
II. Conferences
III. Introduction of joint inspections
IV. Sensitization and demand for professionalism
V. Supply Chain Qualification and ZIPS membership affiliation should be a must for any procurement position
VI. Ensure that ZIPS representative is present each time an interview is conducted
Issued by
ZIPS Secretariat
26th February 2020