ZNCC petitions Parliament over secrecy clause in Procurement Bill

THE Zimbabwe Nation Chamber of Commerce (ZNCC) has urged Parliament to reconsider a clause guaranteeing secrecy under the Public Procurement Amendment Bill (PPAB). The clause amends Section 3 of the Principal Act by repealing the current subsection (6) and replacing it with a provision that grants the Minister authority to exempt the publication of procurement […] The post ZNCC petitions Parliament over secrecy clause in Procurement Bill appeared first on NewZimbabwe.com.

ZNCC petitions Parliament over secrecy clause in Procurement Bill

THE Zimbabwe Nation Chamber of Commerce (ZNCC) has urged Parliament to reconsider a clause guaranteeing secrecy under the Public Procurement Amendment Bill (PPAB).

The clause amends Section 3 of the Principal Act by repealing the current subsection (6) and replacing it with a provision that grants the Minister authority to exempt the publication of procurement information where disclosure would not be in the national interest.

It further inserts a provision after subsection (7) requiring procuring entities to ensure that all bidders participating in exempted procurement proceedings are informed of the confidential nature of the process and refrain from disclosing such information.

In 2023, Parliament said over a half a decade’s period, the cost of procurement related losses stood at US$10 billion owing to loopholes often abused by well-connected suppliers.

The ZNCC’s latest submission warned that the concept of “national interest” is not clearly defined, allowing broad interpretation.

“Ironically, transparency and public disclosure in procurement may themselves be considered to be in the public interest. This clause may undermine Section 315 of the Constitution, which requires public procurement systems to be transparent, fair, honest, cost-effective and competitive,” the lobby group said.

To address this, the Commerce group said there must be a clearer definition of what constitutes National Interest which justifies confidentiality in the public interest.

“Alternatively, there must be a requirement for disclosure in full to an independent oversight body such as the Auditor-General, the Procurement Regulatory Authority of Zimbabwe (PRAZ), or a Parliamentary committee under oath of secrecy

“In exceptional circumstances, disclosure may be delayed. Require suppliers, including those participating in confidential procurements, to declare beneficial ownership information to the oversight body,” reads the ZNCC submission in part.

If left unattended, the lobby group fears that the clause could encourage the creation of proxy companies or enable politically connected persons to influence procurement processes indirectly, increasing corruption risks.

ZNCC also critiqued Clause 20 of the Bill which amends Section 101 by expanding the regulatory powers of the Minister to include authority to prescribe regulations relating to electronic procurement systems, administrative penalties and licenses

“The Parliament should consider establishing a separate regulatory framework or independent professional body responsible for licensing procurement practitioners and standardizing training programs.

“The procurement regulator may be represented on this body to maintain coordination without compromising independence,” the submission recommended.

The submission pokes holes on Clause 8 of the Bill which amends Section 29 to expand domestic preference provisions, giving additional preference to entities predominantly controlled by war veterans and youths, in addition to preferences already reserved for women.

This clause, ZNCC argued may create internal inconsistencies in the Bill because the preceding clause promotes nondiscrimination which is further compromised as this provision introduces preferential treatment based on identity categories that may not be defined using clear and objective criteria.

The industry grouping has also criticised the Bill over lack of specific provisions enabling use of the e-government procurement (eGP) system.

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